Two Financial Questions - unrelated

[Antonia]

1) My friend thinks if she itemizes she can include money she has contributed into her 401K. I don't think that is correct, but she swears they always do it.

2) My FIL is 70 and draws his social security. He still works, but is now unable to due to severe and surgical diabetic foot problems. He told my SIL that he is going to try to "try to get disability", however. I didn't realize a 70 yr old man drawing his social security could go on disability. Even if he might have a disability policy on his job (doubtful) I would think it would have age restrictions. He was only about 55 when he went to work there.

 

[GoofItUp]

If your 401K is contributed pre-tax, then you have reduced your taxable income, but I don't think it will matter if you itemize or take the standard deduction. You just have less to start with.

 

[figment52]

401k contributions are not deductible on the tax return. They come off the reoirted income on the W2. If you look closely at the W2 there will be one amount in the first box (wages) and a larger number in the boxes that show the Social Security and Medical Wages boxes. That difference is the 401k contributions.

Can't help with the second question.

 

[Dan Murphy]

Question 1 answered above.

Question 2...if receiving SS retirement benefits, no SSDI, no double dipping. As for a personal or company benefit, most (not all) will either end or significantly reduce in benefit at age 65. As always, best to contact the insurer.

(not to be taken as financial advice)

 

[Antonia]

Thanks - especially about the social security. I was 99% sure about the no double dipping. Thanks, Dan.