Can I work after claiming Social Security at 62 and put excess earnings in Roth IRA to avoid benefit reduction?

Unfortunately, that strategy won't work. Social Security counts your gross earnings before any deductions when applying the earnings test - even contributions to retirement accounts. They look at your earnings as reported on your W-2 or self-employment income. At age 62 in 2025, the earnings limit will be approximately $22,320 (the exact 2025 amount hasn't been announced yet). For every $2 you earn above that limit, Social Security will withhold $1 from your benefits. Your Roth IRA contributions won't change this calculation. Remember though, these aren't permanent reductions. Once you reach your Full Retirement Age (FRA), Social Security will recalculate your benefit and give you credit for months when benefits were withheld.

sry but nope doesnt work that way. my brother tried somethin similar last yr. SSA counts ALL your income b4 any deductions. roth, 401k, doesnt matter, they still count it all for the earnings test.

I went through this exact situation when I claimed at 62 while still working part-time. The earnings test looks at your gross wages or net self-employment income. Pre-tax deductions like healthcare, 401k, and HSA contributions don't reduce your countable income, and neither do after-tax deductions like Roth contributions. One thing to consider: the earnings limit is much higher in the year you reach Full Retirement Age, and there's no limit at all once you hit FRA. For example, if your FRA is 67, you might be better off waiting until then to claim if you plan to continue working significantly. Also remember that while starting at 62 gives you benefits sooner, your monthly amount will be permanently about 30% lower than if you waited until FRA.

Everybody's focused on the NO but there ARE strategies! I'm 63, claimed at 62 and still working. What I do is carefully track my earnings and when I get close to the limit, I take unpaid time off for the rest of the year. My employer is flexible though. Some people switch to contract work after hitting the limit since then you can control when you actually receive the income (January of next year).

When I filed for SS at 62 last year, I had a TERRIBLE time getting accurate information about the earnings limit. Called SSA for 4 days straight and kept getting disconnected or stuck on hold for hours!!! FINALLY I found Claimyr (claimyr.com) which got me connected to an agent in about 20 minutes - their video shows how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed what others are saying - ALL earnings count toward the limit regardless of what retirement accounts you contribute to. But she did tell me that certain types of income like investment income, pension payments, and rental income DON'T count toward the earnings test. Only wages and self-employment income matter.

Instead of trying to avoid the earnings limit, have you considered if claiming at 62 is even the right move? Your benefit increases by approximately 8% for each year you delay claiming from 62 to 70. If you're still working and don't absolutely need the SS income right now, waiting might be more financially advantageous long-term, especially if you expect to live past your early 80s. The earnings limit wouldn't be an issue if you wait until your Full Retirement Age to begin benefits. Plus, your benefit amount would be significantly higher - claiming at 62 results in a permanent reduction of around 30% compared to your FRA benefit amount.

my cousin tried somethin like this and got a nasty surprize when SSA made him PAY BACK some benefits!!! they found out he earned too much when his taxes were filed. its really not worth the headache to try and game the system. they WILL catch up to you eventually.

I HATE the earnings limit!!! Its so UNFAIR - we pay into the system our whole working lives and then they penalize us for continuing to work?? At least if you're under FRA and lose benefits due to working, they'll recalculate your benefit amount once you reach FRA to account for the months when benefits were withheld. But still, the whole system feels like it punishes productivity!!

lol we all wanna find loopholes but ssa been around a long time. they thought of everything already trust me

One important point that hasn't been mentioned yet - if you're still working, your future benefit amount might still be increasing! Social Security calculates your benefit based on your highest 35 years of earnings. If your current earnings are higher than some of those earlier years (adjusted for inflation), you could actually see your benefit amount increase even after you've started receiving benefits. So while you might lose some benefits to the earnings test now, you could end up with a higher monthly amount later. It's a complex calculation, but something to keep in mind as part of your decision-making process.