If I make over the limit of $14,160.. say I make $19,160... which is $5,000 over the limit,, but I put $5,000 in a ira,, will I still have to pay 1 for 2 back... or the $2,500 which is 1/2... of the $5,000...
Thank you for your help... richard

Of WHICH limit do you speak?

The way it works is the amount that the SSA pays you is reduced $1 for every $2 of wages you earn (as long as you are under the full retirement age). So if you properly report your wages as $19160 you don't have to "pay it back," but rather they will simply not pay the first $2500 that you would otherwse have received.

The amount not paid is based on your wages, not you adjusted gross income. So to answer the question - contributing to an IRA has no affect on how much SS benefit you get. So if your wages are $5K over the limit your benfit is reduced by $2500.

This site might help: http://www.ssa.gov/pubs/10069.html