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Company Bonus Received after Retirement

I may retire in 2018. I will also be receiving a substantial bonus from my firm in 2019. Would the bonus amount count towards my top 35 yrs. of earning to determine my social security payment in retirement? If not I may look to extend my career and retire in January, 2019. 

Thank you in advance.

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Honored Social Butterfly


@r592971swrote:

I may retire in 2018. I will also be receiving a substantial bonus from my firm in 2019. Would the bonus amount count towards my top 35 yrs. of earning to determine my social security payment in retirement? If not I may look to extend my career and retire in January, 2019. 

Thank you in advance.


cat0w is right; it all depends on how your company will be reporting it in 2019, especially if you are retired.

 

If they report it as wages, deduct income taxes and your contributions to FICA and report it on a W-2, it will be wages and will be countable as your earnings - but if not, then NO -

Your answer lies with your employer and how they would/will handle it.

 

 

It's Always Something . . . . Roseanna Roseannadanna
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Regular Contributor

 I am retiring next week and instead of waiting till end of year for my bonus, which is a variable since I get 25% of the net profits, I made a deal with my company to pay it to me while still employeed and tax it. I will only get a half of a bonus because I only worked half of a year. We just averaged out the last few years and I will get half of that average amount. Between SS payments, my salary and a very large bonus from last year paid to me this year, I have no idea of what my tax liability will be but I suspect I will get a large refund because I claim no dependents for tax withdrawals from my pay check,

Retiring is trading one boss for the one you married.
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Gold Conversationalist

@VinnyD983161  Do you have a question or did you just want to let us know you are getting a bonus?

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Will they be withholding anything for Social Security from that bonus check? Will it be reported as part of your income?

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