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Earnings limit

Earnings limit

August 15, 2012 by admin

This depends on the type of benefits you're receiving. There are quite strict earnings (wage) limits if you're receiving Social Security disability or SSI benefits.

I'll assume you're talking about Social Security retirement or survivor benefits. In this case, only earnings before the month you reach full retirement age (FRA) count towards your annual limit. If you work the entire year, the SSA will use this formula to determine how much your benefit must be reduced:

  • If you are under FRA when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. For 2012 that limit is $14,640; in 2011 the limit was $14,160.
  • In the year you reach FRA, $1 in benefits will be deducted for each $3 you earn above the annual limit up to the month of FRA. For 2012, the limit is $38,880; in 2011, the limit was $37,680.
  • Starting with the month you reach FRA you will receive your benefits with no limit on your earnings.

http://www.ssa.gov/retire2/whileworking.htm

http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/302


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