# Social Security Windfall Risks

> Williams-Sonoma's $10m 401(k) bonus could cut Social Security checks for early retirees.
- Title: Social Security Windfall Risks · 24/7 Wall St. | Shortify
- Summary: Williams-Sonoma's $10m 401(k) bonus could cut Social Security checks for early retirees. Employees collecting Social Security before full retirement age face…
- Keywords: social security, 401k, williams-sonoma, cash bonus, earnings test, social security checks, Social, Security, Windfall, Risks, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/social-security/2026/10/17/workers-are-getting-a-10-million-401k-windfall-but-a-cash-bonus-could-put-social-security-checks-at-risk
- Author: Gerelyn Terzo
- Published: 2026-10-18T01:00:35+00:00
- Read time: 1 min
- Topics: social security, 401k, williams-sonoma, cash bonus, earnings test, social security checks
## Williams-Sonoma Windfall
Williams-Sonoma split $200 million tariff refunds with workers.
## Employee Reward Plan
The company puts $10 million toward one-time 401(k) contributions for some employees.
## Social Security Rules
Social Security treats cash bonuses and 401(k) contributions differently for early retirees.
## Linda's Situation
Linda collects $2,000 monthly Social Security while earning $22,000 annually.
## Cash Bonus Impact
A $5,000 cash bonus raises Linda's earnings to $27,000, risking $1,260 in Social Security withholdings.
## 401(k) Contribution Safety
401(k) contributions keep Social Security checks on time for early retirees.
## Key takeaway

Employees collecting Social Security before full retirement age face reduced checks if employers give cash bonuses instead of 401(k) contributions.