<HTML>     Bob        My understanding is earning 40 quarters at or above 18k a year gets you the max benifit. Compare the SS contributions from the guy making 18k a year(what 2K)to the guy paying the max.15k or so. They get the same benifit at retirement though there contributuions were no where nears equal. I call that wealth redistrubtion. So from that point of view folks with subchapter S corps are trying to equal that playing field by limiting what they give SS and then do whatever they wish with the extra be it investment or a vacation.   I personally don't want the hassle of more governmental regs that come with a Corp at this time. If you screw up in a corp. things can get ugly as the state takes running them properly more serious than the fed especially here in the Golden State.    Dale Erwin <BLOCKQUOTE TYPE=CITE style="BORDER-LEFT: #0000ff 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px"> I'm aware that you only need 40 quarters of high income to establish good benefits with SS, but at what point does the average tech start this process, later in life when their kids are in college? I realize that SS isn't nearly enough to cover retirement, but the way most people save nowadays, is it prudent to underfund our retirement. What are your thoughts on this subject? Bob Russell </BLOCKQUOTE> </HTML>