How to Avoid Paying Into Social Security
November 15, 2007
What? Is that possible, to avoid Social Security payments? Well, like most things in personal finance the answer is that it depends.
My wife didn’t pay one cent into Social Security for the last seven years of working, better yet, it was all legal and above board. As a state employee, she still contributed to a mandatory state retirement plan but she was exempt from paying into Social Security. Being a teacher does have some benefits : )
Teachers get the summers off and don’t have to pay Social Security, at least in our state anyways. Of course they don’t get paid as well as people in the private sector but the benefits are nice.
One of the things I dislike about the Social Security money coming out of my paycheck is that I’ll likely never see any of it again. When she was working she had the comfort of knowing that all the money she contributed would probably be there for her when we turn old and gray. It’s as if the personal finance fairy came up to us and asked if we wanted to stop throwing money away every month and poof, it was done.
Of course, now that she’s not teaching and working a different part time job, any money she pays into Social Security will automatically be forfeit. I haven’t researched it myself but according to other teachers if you draw from the state retirement plan, any money you did pay into Social Security before or after teaching is forfeit. This really hit one lady who worked in corporate America for 10 years before becoming a career teacher. All her Social Security contributions from that time were down the drain.
Anyhow, if you’d like to avoid paying into Social Security, just become a teacher!
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