From 24/7 Wall St. · Gerelyn Terzo · · 1m 40s
Tech Giants Spend $7 Trillion on AI
A $250,000 salary still has a $65,500 Social Security blind spot.
In brief
A $250,000 salary still has a $65,500 Social Security blind spot. Tech giants may spend $7 trillion on AI by 2030, but a high earner's $250,000 paycheck leaves $65,500 uncounted for Social Security benefits. Originally reported by 24/7 Wall St..
Tech Giants May Spend $7 Trillion on AI
S&P Global expects six major U.S. technology companies to spend more than $7 trillion on AI-related capital projects between 2025 and 2030.
His $250,000 Paycheck Has a Blind Spot
An engineer earning $250,000 in 2026 assumes his raise builds a bigger Social Security check but has a $65,500 blind spot.
Social Security Ceiling for 2026
The Social Security Administration sets the maximum taxable earnings at $184,500 for 2026.
$65,500 of Pay Is Above Ceiling
His $250,000 salary has $65,500 above the 2026 Social Security ceiling of $184,500.
Social Security Tax Stops at Ceiling
Only the Social Security portion of payroll tax stops at the cap, running 6.2% for employees.
Medicare Tax Has No Limit
Medicare tax applies to every dollar earned, with no ceiling for high earners.
Why $65,500 Never Counts for Benefits
Social Security bases retirement benefits on highest 35 years of earnings, indexed for wage growth.
Higher Pay Still Builds Retirement Security
Higher pay means more take-home cash, 401(k) contributions, and taxable savings.
Roth Conversion Opportunity
A stretch of lower income before required withdrawals may create a Roth conversion opportunity.
401(k) Catch-Up Contributions
Workers 50 and older earning over $150,000 may need to make Roth-based 401(k) catch-up contributions.
Here's the gist
Tech giants may spend $7 trillion on AI by 2030, but a high earner's $250,000 paycheck leaves $65,500 uncounted for Social Security benefits.
