The article uses a hypothetical 61-year-old whose wages rise from $170,000 to $240,000 in 2026. The 2026 Social Security taxable maximum is $184,500, so only about $14,500 of the raise enters his earnings record, adding roughly $5 a month to his benefit. Once wages pass the cap, the 6.2% Social Security tax stops for the rest of the year, saving $3,441 versus taxing all $240,000, while Medicare withholding continues and an extra 0.9% applies above $200,000. The author suggests directing part of the raise into retirement savings such as a 401(k) and checking the earnings record at SSA.gov, since replacing a $40,000 year with the $184,500 maximum could add about $52 a month.
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