I just recently applied to receive my full age Social Security payments beginning this Jan, and was planning to fully retire from my current gov job probably in May. Currently, I have been contributing just enough each pay period to reach my maximum contribution limit by the end of the year.
What if I increased my contribution enough to reach the 2023 basic contribution limit of $22,500 by the time I retire in May? Would I receive all or most of my matchings funds before I leave in May 2023?
I'm thinking since I should be receiving my SS payments by that time, I could afford the reduced take-home pay for a while. Maybe reducing my adjusted gross income now could help my kids with financial aid and scholarships, as my oldest one will be going to college next year? Any thoughts or suggestions?
There are monthly pre-retirement classes on teams. I’d start there and just ask. I have an idea, but, I’m not an expert in this area.
Wishing you the best,
So, you will get all you can as of your last pay check.
It generally takes 1 month to get partial payments started & 4-6 months for OPM to finalize your retirement payments so it is a good idea to have enough cash on hand in the event there are any complications.
Your income will be reduce by increasing your traditional contributions but I'm not sure how your income will impact financial aid for your dependent's college. If your goal is to reduce your income for the year, why start taking SS before you actually retire? Depending on you tax situation, up to 85% of your SS is taxable income.