Going off of all the hoopla about SS being dried up by the time I retire- can I legally opt out of contributing to social security and pay it towards a different plan instead? Are there any ways at all of salvaging social security? Does anyone think the dwindling SS is actually a myth? Please share you ideas with me!
2007-06-19 07:25:24 · 3 answers · asked by quirky 5 in Business & Finance ➔ Taxes ➔ United States
Nope, no chance.
SS has problems, to be sure, and the fix won't be politically popular. The current administration's plan to sell it out to Wall Street is thankfully dead. (Congress may make a mess of things sometimes, but don't forget that it was Wall Street Greed that brought us Enron and WorldCom!).
Fixes to SS will involve raising or removing the earnings cap on SS taxes and possibly raising SS tax rates. Removing the earnings cap will not affect the average worker until their wages exceed $97,500 (for 2007) and will result in a MASSIVE influx of money into the SS coffers. Another fix is to levy the tax on foregone wages of corporate big-wigs who swap their salary for stock options not subject to SS withholding (or employer payroll taxes.)
Even once Congress does step in and fix things, SS will still never pay a significant living wage to retirees. It's intent is to avoid absolute destitution, nothing more. It has been one of the most successful social welfare programs in the history of the world and Congress cannot afford to let it fail however painful the fixes may be either politically or financially.
Every working individual has a responsibility to themselves to provide additional means for their own support and survival in retirement. Congress has passed laws that provide for a number of tax preference items to enable most Americans to do just that. IRAs, Roths, 401(k)s, etc. are all available to nearly all Americans and at least one is available to everyone.
So, get off your backside and participate in your employer's 401(k). If they don't offer one, open an IRA or better yet, a Roth IRA. Or get a job that does offer a retirement plan.
2007-06-19 07:52:15 · answer #1 · answered by Bostonian In MO 7 · 5⤊ 0⤋
No, there is no way to opt out of S.S.
I agree with you that SS dwindling is a myth.
2007-06-19 07:40:10 · answer #2 · answered by Tenn Gal 6 · 0⤊ 1⤋
No you cant opt out.
2007-06-19 07:28:26 · answer #3 · answered by hirebookkeeper 6 · 0⤊ 0⤋