Ask Larry

If I Receive A Lump Sum Workers Compensation Settlement Will It Affect My Social Security?

i am 69 myears old.i receive social secuity. iI also coleect worker comp disabailty.If i take alum sum settlement with workers comp.Will that money effect ss benfits

Hi. No. Since you are over full retirement age (FRA), Workers Compensation (WC) benefits wouldn't affect your Social Security benefits regardless of whether the WC is paid periodically or in a lump sum.

However, receiving a lump sum WC payment could potentially affect how much, if any, of your Social Security benefits are subject to income taxes (https://www.ssa.gov/benefits/retirement/planner/taxes.html).

Best, Jerry

Category: 
Posted: 
May 6 2022 - 12:49pm
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.