In the United States, organizing retirement is one of the most important steps. And among that organization we can find the 401(k). This type of retirement can be a great relief for all kinds of Americans. And getting a good 401(k) plan can help us a lot to have the best golden years.
The problem that sometimes arises for Americans is whether this plan can be combined with Social Security. And the answer is yes, since they are two separate retirement plans. What we do to increase the Social Security check does not affect the 401(k) and vice versa.
So we can set a goal of increasing the amount of money we will earn from both checks. If we do this, we won’t need to max out the monthly Social Security payment. So we may be able to get by with just having an average benefit of around $1,800 per month.
Still, remember that the 401(k) also depends on what we make as workers. It is also important to keep in mind that not 100% of companies let workers use this type of retirement. But it is true that there are more and more companies that do allow this investment in the future.
In short, it is possible to combine the Social Security check with the 401(k). This will result in a fairly high monthly payment. In addition, if we add to this the possibility of eliminating debts before retirement, the money we will have every month will be greater.
To avoid tax problems when collecting 401(k) and Social Security, it is advisable to find an advisor. This worker can help us to efficiently declare all monthly income.