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Benefit Offset - 401k Retirement Glossary Benefit offset is when a 401k retiree does not have receive the full benefits and payments from his 401k retirement plan because he owes money to the plan. This is a typical case when a retiree borrows a 401k loan and is not able to repay it back. The US Social Security Act allows 401k administrators to withhold 10% of a retiree's 401k savings in order to settle any unpaid balances. |