Why was Social Security money moved to the General Treasury? – Ask Rusty

Dear Questioning Senior: I’m afraid I must inform you that no Social Security funds have ever been moved from the Social Security account to the government’s General Fund – this is a pervasive myth which we have refuted many times over the years. For information, here is one of many articles I have published on this topic, which I hope you find interesting: https://socialsecurityreport.org/ask-rusty-about-repaying-social-security-money-taken-by-politicians/ 

Someone actually is charged with monitoring our Social Security funds – a board of Social Security Trustees consisting of the Secretaries of Treasury, Labor, and Health & Human Services, as well as the Commissioner of Social Security plus two Public Trustees. Each year the Social Security Trustees do a complete analysis of the Social Security program, especially its financial status and outlook for the future. If you have interest in the Trustee’s latest annual report, here is a link to the 2024 analysis: https://socialsecurityreport.org/wp-content/uploads/2024/05/tr24summary.pdf 

What you will find in the Trustees’ report is that Social Security will run out of reserved funds in about 2033, necessitating an across the board cut of about 21% for everyone, unless Congress acts soon to reform the program and restore it to fiscal solvency. The Trustees have warned Congress about this problem for many years, but Congress has yet to find the bipartisan cooperation needed to fix the problem. AMAC (the Association of Mature American Citizens) has steadfastly offered proposals to Congress which would restore Social Security to solvency and will continue to do so with the new 119^th Congress, which convened on January 3, 2025.    

Please know that we appreciate your feedback and commend you for the wise use of your 401k investments, something that many of our members find necessary to supplement their Social Security. Remember, Social Security was never intended to provide all your retirement income, so earlier saving to supplement your retirement financial needs was a very wise move on your part. 

Thank you for submitting your question to our Social Security Advisor department. Be sure to share our link with your family and friends. 

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at [email protected].