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I receive a little over $1200/m in SS that I took at 62. I am thinking of going back to work, and it would probably be at a higher salary than allowed by SS.
I know they deduct $$ for a certain amount of money made from my SS payment. And I will be having SS payroll deductions taken out when I work.
Question: When I stop working again at full retirement, age 66-70 yrs old, will I get MORE than the $1200/month I get now, or will my SS payment be permanently reduced?
I believe its a $1 reduction for every $2 over the income limit for early SS recipients.
By working, you will be adding to your lifetime income figure, one that is used to calculate SS benefits.
If possible, stop taking early SS, pay back what they have paid so far, and your full benefits will be restored. Try delaying SS as long as possible, as each year over full retirement age adds about 8% to your benefit. I think this stops at age 70, but its a great way to get more if you think you will live a long time.
Your local SS office should be able to run the numbers for you.
Also, in order for any new yearly income to cause an increase in benefits, the new year's income would have to be more than the lowest of the 35 years (which are adjusted for inflation) that were used to calculate your original benefit. In general, unless the new income is as much or more than your last old career working years, there is very little affect on your benefit rate, due to the 35 year averaging.
Also, the amount withheld is not permanently lost. At full retirement age, your benefit will be recalculated because of the amount withheld and you will gradually get it back in the form of increased benefits, quite separately from the issue of the additional taxed wages possibly causing an increased benefit. I don't know how long it takes to "recoup" the amount withheld, but it would be a number of years.
How long does it take SS to catch up to the fact that you might be making more than the allowed amount? In my case I chose to take early had to really. Started collecting SS in January but no income as of yet. I doubt I would make enough the rest of the year to hit the $15720 threshold. Would the clock start again as far as extra earnings in January 2017? Would benefits be reduced as soon as I hit the threshold or is there a lag time for that?
How long does it take SS to catch up to the fact that you might be making more than the allowed amount? In my case I chose to take early had to really. Started collecting SS in January but no income as of yet. I doubt I would make enough the rest of the year to hit the $15720 threshold. Would the clock start again as far as extra earnings in January 2017? Would benefits be reduced as soon as I hit the threshold or is there a lag time for that?
Well since you have to report SS income on your taxes, it won't take them long to figure it out.
When I had just reached the cut off of $ 15,000+ I went to SS office, filled out paperwork for them to stop it and a form estimating what I had earned for that year and they calculated what I had to repay. The form also asked for an estimate of what I would earn the following year. The amount I had to repay was a little less than the last SS check I had received. I paid it back that day and that was that. I of course reported the SS I had received that year on my taxes.
One certainly can't ( nor should one) hide the fact that one is receiving a salary that exceeds the stipulated maximum (at least not legally...). If you exceed the threshold, you have to stop SS until such time as you earn less than the threshold for the year as far as I know. I don't think you can have the excess salary and SS at the same time.
If you exceed the threshold, you have to stop SS until such time as you earn less than the threshold for the year as far as I know. I don't think you can have the excess salary and SS at the same time.
According to https://www.ssa.gov/planners/retire/whileworking.html the SSA will automatically reduce your benefits if your earnings are above the limit. If your earnings are far enough above the limit, yes I believe your benefits could stop completely until you reach FRA.
According to https://www.ssa.gov/planners/retire/whileworking.html the SSA will automatically reduce your benefits if your earnings are above the limit. If your earnings are far enough above the limit, yes I believe your benefits could stop completely until you reach FRA.
SSA did NOT automatically reduce my benefits. I researched online, called their office re: the process of alerting them of my earnings and was directed to the SSA office to submit the paperwork. They did not approach me re: my earnings or any impact on my benefits. By the time the system 'figures out' that you are over the limit, you will probably be more in arrears. You WILL have to pay it back. Most likely they don't find out you are working /earning until tax time.
IMHO not a good idea to wait for them to tell you that you are above the limit. Could be a shocker.
IMHO not a good idea to wait for them to tell you that you are above the limit. Could be a shocker.
Totally agree, and wasn't suggesting otherwise. Certainly it's best to be proactive.
If your earnings for the year are greater than any of the years that SSA originally used to calculate your benefits, supposedly the SSA will recalculate and increase your benefits accordingly. I'd imagine it's best to notify them of that fact as well, rather than wait for them to discover it.
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