Beginner’s Guide to the Social Security Earning Limit
The Social Security earnings limit is designed to regulate the amount of income you can earn while collecting program benefits. While the Social Security Administration (SSA) permits you to work and receive benefits, there may be limits regarding how much you can earn. This is especially true if you have not yet met the Social Security (SS) full benefits retirement age.
It is important that you understand your Social Security benefits earned income limit. Depending on how old you are, your benefits may be deducted by the amount you earn over the limit. The more you understand the earned income limits on Social Security benefits, the better you can calculate how much SS you could receive.
Is there a Social Security early retirement earnings limit?
No matter how old you are when you retire, there are limits on earnings when receiving Social Security. However, these limits only last until you reach full retirement age (FRA). Currently, the FRA is either 66 or 67 years of age, depending on when you are born. However, up until you reach your designated FRA, there are Social Security earnings limits you must review.
Furthermore, remember that Social Security earnings limit can impact you financially. If you receive SS benefits before you reach your full retirement age, the SSA will hold $1 for every $2 you earn over your earnings limit. During the year when you are set to reach full retirement, $1 for every $3 you earn over the limit is withheld from your Social Security check.
The Special Earnings Limit Rule for New Retirees
The Social Security special earnings limit rule outlines how much income working enrollees can earn when they start receiving benefits. This guideline applies to new enrollees who start collecting at some point during the calendar year. If petitioners enroll once the year has already started, there is a good chance that they have already met the program’s annual income limit.
Rather than penalize workers, the Social Security office allows new enrollees to meet specific income guidelines during their first year collecting SS. This means that enrollees have a monthly maximum they must earn less than in order to receive their full SS benefits. Recipients who exceed their monthly income can expect to see decreases in their payments for that month. In any case, keep in mind that the maximum Social Security income limit a recipient can earn will vary from year to year. Likewise, the earnings maximum can increase, depending on the recipient’s age.
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