Over The Limit SS Earnings (social security, retired, years, payments)
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Started collecting just before 64. My FRA is 66 and doesn't hit until April 2018. This year and 2018 are not a problem. 2017 will be in question.
My SS is 2000. Have a couple of job offers which will gross around 25K which will put me around 10K over the allowable earnings limit in 2017. The penalty will be around 5K.
I reach FRA April 2018. I guess I will not get at least 2 checks in 2018. Since I understand the money is not lost forever how do I get it back from SS? Do they pay a small percentage each month until the money is paid back to me or do I get a lump sum? Not really understanding this I imagine someone must have been in this situation before me. How long before i would receive the 5K penalty back? Months? Years?
Social Security gives it back in the form of time. When you are FRA they will look at how much money they withheld and they will figure out how many months that represents. Then they will re-figure your monthly benefit check as if you had started taking your benefit that many months later.
OP - you're not getting that money "back" in any significant amount anytime soon. In other words, your benefit going forward will increase slightly. It won't be much.
OP - you're not getting that money "back" in any significant amount anytime soon. In other words, your benefit going forward will increase slightly. It won't be much.
Yes, unless you live to be about 100, don't count on getting it back.
Social Security gives it back in the form of time. When you are FRA they will look at how much money they withheld and they will figure out how many months that represents. Then they will re-figure your monthly benefit check as if you had started taking your benefit that many months later.
When I am FRA they would have withheld a total of 2 1/2 checks or 5k. So are you saying they will refigure my new monthly payout as my original FRA payout which would have been $2400 monthly less the payment for Part B? In that case I would receive the amount of the penalty back to me in about a year? This does not seem to be what the other posters are saying.
they take your payments you gave back and translate it in to time .
so lets say you got 10k in ss a year filing at 62 so in 4 years you got 40k but gave back 20k . 20k is 2 years worth of payments you gave back that you get credit for ,so you get recalculated at fra as if you retired not at 62 but at 64 . your check at fra would get a 16% raise plus colas .
they take your payments you gave back and translate it in to time .
so lets say you got 10k in ss a year filing at 62 so in 4 years you got 40k but gave back 20k . 20k is 2 years worth of payments you gave back that you get credit for ,so you get recalculated at fra as if you retired not at 62 but at 64 . your check at fra would get a 16% raise plus colas .
So in my case 5K in penalties translates into 2 and 1/2 months in monthly payouts. I retired at 63 years 9 months. You are saying my new SS payout calculation is now figured as if I would have retired at 64 years? That would mean I would receive about $50 more per month from SS since my SS payout grew around $14 monthly as I followed along on the website before I retired in January 2016. That's around 100 months before I would have gotten back the penalty.
So in my case 5K in penalties translates into 2 and 1/2 months in monthly payouts. I retired at 63 years 9 months. You are saying my new SS payout calculation is now figured as if I would have retired at 64 years? That would mean I would receive about $50 more per month from SS since my SS payout grew around $14 monthly as I followed along on the website before I retired in January 2016. That's around 100 months before I would have gotten back the penalty.
I guess I am reading what you said correctly.
Yes. That is how it works. If your payment grew around $14 monthly and the reduction in benefits translated into 3 months of time, your benefit would be recalculated as though you retired at age 64 and your new monthly benefit amount would be $2,042.
And that is why the posters above are telling you it takes a long time to recoup your money.
Thanks all. Fortunately I only have to deal with this for earnings I will have in 2017 since I reach FRA April 2018 and this year 2016 I will not exceed the limit because I did not work for the first 7 1/2 months of the year.
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