- How It Works
- ServicesServicesOverviewChoose the right level of support for your plan and needsExpert ReviewA comprehensive review of inputs and reports to get you on the right pathFiling AssistanceLet our experts deal with Social Security for youClawback AssistanceFor those who need help fighting a Social Security benefit clawback
.png)
- Why Choose Us
- ResourcesResourcesBooksFrom the world-renowned economist behind Maximize My Social SecurityWebinars & PodcastsExpert tips and guides to help you get the maximum from Maximize My Social SecurtyArticlesIn-depth commentary on Social Security from our founderAsk LarryThousands of questions answered by our Social Security expertsBlogSocial Security insights to help you maximize your lifetime benefitsFAQYour most pressing questions answered
- Pricing
Ask Larry
Experts at Maximize My Social Security have answered more than 10,000 questions about Social Security over many years. Search for your questions and answers here.
Is It True That Moving Funds From A 414h2 Plan To An IRA Could Reduce A Person's Social Security Benefit?
I have a client with a 414h2 plan from a county hospital where she didn't pay into social security. Someone told her that if she moved that plan to an IRA, it would qualify as WEP and reduce her social security benefit. She has asked social security and has been given different answers. Any help you can provide is appreciated.
Hi,
I'm not familiar with 414h2 plans, but if your client collects a pension, or payment(s) in lieu of a pension, that's based on work and earnings that weren't subject to Social Security taxes, then her Social Security retirement or disability benefits may be reduced due to the Windfall Elimination Provision (WEP). Disbursements from a defined contribution plan can cause such a reduction regardless of whether or not the money is moved to an IRA. For more detailed information, refer to the following section of Social Security's operations manual: https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605364#a3.
Best, Jerry
Category:
Posted:
January 20, 2021