Tax deferral …


Q. Theoretical case: If a retiree has a $10,000 per year SRS benefit then works part-time earning $40,000 per year, can the retiree place all or most of post retirement earnings into employers tax-deferred account, therefore not impacting SRS earnings test? The desired result would be to not have any earnings or insignificant earnings, thereby retaining $10,000 per year SRS benefit while also generating $40,000 tax-deferred account. I think the IRS annual deferral limit is approximately $54,000. Thoughts?

A. No. Directing the earnings into a tax-deferred account does not make them disappear for the SRS earnings offset calculation.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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