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I just got this little low paying job that will put me $900 over the allowable earnings limit in 2017. My FRA kicks in April 2018.
2016 is not a problem I just started working and will be well below the earnings limit. If I work every day every week in 2017 I will earn a shade under $1000 for the entire year over the limit of $15720. I thought they took $1 back for every $2 you earned over the limit. This would mean I would lose around $500 of benefits. Would I lose one entire month of benefits in 2018 which is a heck of a lot more than the $500 penalty. Sounds stupid.
So SS will take one month of benefits in 2018 only to turn around and start giving me this money back just 4 months later in April 2018 when I reach FRA? Why wouldn't they just take $500 off of the first benefit month when they find out what I made in 2017 either by themselves or by me alerting them to this fact?
I just got this little low paying job that will put me $900 over the allowable earnings limit in 2017. My FRA kicks in April 2018.
2016 is not a problem I just started working and will be well below the earnings limit. If I work every day every week in 2017 I will earn a shade under $1000 for the entire year over the limit of $15720. I thought they took $1 back for every $2 you earned over the limit. This would mean I would lose around $500 of benefits. Would I lose one entire month of benefits in 2018 which is a heck of a lot more than the $500 penalty. Sounds stupid.
So SS will take one month of benefits in 2018 only to turn around and start giving me this money back just 4 months later in April 2018 when I reach FRA? Why wouldn't they just take $500 off of the first benefit month when they find out what I made in 2017 either by themselves or by me alerting them to this fact?
Here is what you do - Around October or November of 2016, you call SSA at 1 800 772 1213 and report that your 2017 earnings will be approximately $17000.00 for the year. It is too soon now to report 2017, and the 2017 allowable amounts are not yet set. For all you know, you might be under the new limit.
But,let's say you are not under, but a little over. SSA will withhold January's check - the one you receive in the bank in February. All the rest of the years checks will be deposited.
When 2017 is over, and SSA knows exactly what you earned in 2017, they will even up your records. If, say, your check is $1200.00 a month, and they kept that one check, but only $500.00 was the amount they should have kept, they will send you $700.00.
Now, I know from experience that this really bothers people. So, people underestimate the earnings. If you go that route, then you are overpaid and owe SSA $500.00.
People also don't like that, and sometimes, the year after circumstances change and you don't have $500.00. So, I always advised folks to overestimate, not underestimate. People do like getting a check rather than writing a check.
It also cuts down on your contacts with SSA and leaves your blood pressure intact.
Here is what you do - Around October or November of 2016, you call SSA at 1 800 772 1213 and report that your 2017 earnings will be approximately $17000.00 for the year. It is too soon now to report 2017, and the 2017 allowable amounts are not yet set. For all you know, you might be under the new limit.
But,let's say you are not under, but a little over. SSA will withhold January's check - the one you receive in the bank in February. All the rest of the years checks will be deposited.
When 2017 is over, and SSA knows exactly what you earned in 2017, they will even up your records. If, say, your check is $1200.00 a month, and they kept that one check, but only $500.00 was the amount they should have kept, they will send you $700.00.
Now, I know from experience that this really bothers people. So, people underestimate the earnings. If you go that route, then you are overpaid and owe SSA $500.00.
People also don't like that, and sometimes, the year after circumstances change and you don't have $500.00. So, I always advised folks to overestimate, not underestimate. People do like getting a check rather than writing a check.
It also cuts down on your contacts with SSA and leaves your blood pressure intact.
So you are saying that worst case scenario if the figures hold true and I have a $500 penalty due to over the limit then that is all I would have to pay back to SS? I would rather do that than have them hold a check for $2000.
So you are saying that worst case scenario if the figures hold true and I have a $500 penalty due to over the limit then that is all I would have to pay back to SS? I would rather do that than have them hold a check for $2000.
it can be just as confusing waiting .especially if you file between fra and 70 . then the month you file can hurt you . they use a different method of applying your credits.
.If you retire before age 70, some of your delayed retirement credits will not be applied until the following January . you can actually lose money you earned credits for if you get this wrong .
Yeah, but if I retire at 65 and not claim until 67,68, or later. Aren't all my credit and calculations already in and calculated by then. How delayed or behind can SS credits and calculations be? I think I've read applying in January is best?
My plan is retire in the year I turn 65, and unless a WHOLE LOT changes…not apply for bennies until at least age 68.
(And I don't plan to work in those intervening years.)
if you claim after your fra , delayed credits are calculated in january for the previous year .
when you file in mid year you get the rate from the previous january and get a new rate calculated the following jnuary including all the delayed credits earned the previous year and paid going forward . .
but what you lose is any delayed credits on previous checks and never get that money .
you have to file in january to avoid that . do it between fra and 69 .
so here is an example :
you retire in july of 2017 . you get a rate based on january 2017 . in january 2018 you are recalculated to reflect the 6 months extra you accumulated going forward but you never get the 6 months retro you lost.
the only way to get every penny in credits you earned is to wait until january to file . it is one of those little secrets few know .
I'm starting my retirement in April 2017 at age 63. I have been working in Yacht Sales full time but plan to now work part time. I have a rather large commission check of about $18,000 that was supposed to pay out in March before I retired but it has been delayed until April. I know I will lose my check for April but can I lose any more because I'm over the yearly limit in a normal full year. Under the first year rule it states that for any hole month I earn less than $1,410 a month I'm considered retired and will receive a SS check regardless of my yearly income. Is this true or can they penalize me for the entire year.
you can earn up to 45,000 or so if it is the year you will be fra after you collect ss but that amount is prorated .
lets say in 2018 you will be fra in october
you file for ss in july 2018 so you can earn up to 24,500 between july and december since that is 6 months so you are allowed 1/2 the amount .. the year before you are fra allows you to earn 3 dollars and give back one instead of giving back 1 out of every 2
This might be an issue down the road a couple years. Wife is 63 and still working. Makes $43K. Birthday in Dec. So, in the year she turns 66, since she will earn less than $44,880, can she claim in January and not have anything withheld?
Last edited by Newporttom; 03-16-2017 at 11:16 PM..
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