Dear Liz: I was 36 with two young children, ages 6 and 2, when my husband died. We are collecting Social Security survivor benefits. I work only part time since my kids are so young. He left two IRAs: one that named me as a beneficiary and one that didn’t name anyone. I understand I can treat the first one as if it were my own, and put off taking withdrawals. The second one must be drained within five years. Will the withdrawals from the second account affect my gross income and ability to collect our monthly Social Security benefit?
Answer: The withdrawals will be considered taxable income, but the money shouldn’t affect your survivor benefits.
Social Security benefits received before your full retirement age are subject to the earnings test, which withholds $1 of benefits for every $2 you earn over a certain amount, which in 2025 is $23,400. The earnings test includes wages and self-employment income, but doesn’t include withdrawals from retirement accounts.