I am considering use of a health savings account plan at work. Using one would reduce my taxes but have a secondary result of lowering my earnings for Social Security. Can this reduce my future Social Security retirement amount?

Q & A

I am considering use of a health savings account plan at work. Using one would reduce my taxes but have a secondary result of lowering my earnings for Social Security. Can this reduce my future Social Security retirement amount?

Posted on February 26, 2014

Answer: It potentially could, depending on the amount of money involved and for how long a time. An individual answer partly depends on the person’s work record over many years. Social Security retirement amounts are based on your best 35 years of work earnings and your age, in months, compared to full retirement age, when starting benefits. If earnings that are reduced by the health savings account plan are included in those best 35 years, future benefit amounts might be smaller. Read more…

Source: Howard Kossover, Grand Forks Herald - (GrandForksHerald.com - January 4, 2014)

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