Confused about Social Security FRA timing and earnings test when turning 67 in March
I'm trying to figure out the best approach for starting my Social Security retirement benefits when I reach my full retirement age. My FRA is March 15, 2025 (turning 67), and I'm not planning to work after that point, but I will be working January-March earning about $8,000 per month ($24,000 total for those 3 months). Two questions that I can't seem to get straight: 1. If I want to start benefits exactly at my FRA in March, when should I submit my application? Is December 2024 too early? I know my first payment would come in April 2025. 2. How will the earnings test work for those first 3 months of 2025? Will the $1 for every $2 over the limit rule apply for Jan-Mar even though I'll hit my FRA in March? And if I earn around $24,000 in those 3 months, how much might they withhold? I'm getting conflicting advice from friends who've already gone through this process. Thanks for any clarity!
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Alina Rosenthal
You should apply 3 months before you want benefits to begin, so December 2024 is perfect timing for a March 2025 start date. As for the earnings test, it gets tricky in the year you reach FRA. For the months BEFORE the month you reach FRA, SSA applies a higher earnings limit (around $59,520 for 2025) and withholds $1 for every $3 you earn above that limit. Since you're earning about $24,000 total for Jan-March, you'll be well under that higher limit so nothing would be withheld.
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Mohammad Khaled
•Thanks so much! I was really confused about the earnings test. So there's a DIFFERENT earnings limit that applies during those months before FRA in the year you reach FRA? I thought it was still the regular limit (around $22K) with the $1 for $2 reduction. This is a huge relief!
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Finnegan Gunn
My sister just went through this. She said its best to apply 4 months before FRA just to be safe. SS can be so slow sometimes with processing applications!!
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Miguel Harvey
•This is NOT correct advice! Applying 4 months before could actually cause SSA to start your benefits the month before your FRA if they process it quickly, which means you'd get a permanently reduced benefit! Three months is the standard recommendation for a reason. Be precise with your application date.
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Ashley Simian
When I hit my FRA last year they took out money for the earnings test even though I was told they wouldn't. Had to call them THREE TIMES to get it fixed. SSA makes so many mistakes its ridiculous. Good luck getting through to anyone on the phone tho...
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Oliver Cheng
•I had a similar experience but found a service called Claimyr that helped me get through to SSA quickly. I was on hold for hours before using them, but with their service I got connected to a rep in under 30 minutes. You might want to check them out at claimyr.com - they have a video demo at https://youtu.be/Z-BRbJw3puU that shows how it works. Saved me so much frustration when I needed to fix an issue with my benefits calculation.
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Taylor To
To clarify a bit more on the earnings test: In the year you reach FRA, SSA applies a different rule for the months BEFORE you reach FRA. For 2024, the limit is $56,520 and they withhold $1 for every $3 over that limit. For 2025, this will likely be around $59,520 with inflation adjustments. This only counts earnings BEFORE the month you reach FRA. After you reach FRA, there is NO earnings test at all - you can earn any amount without reduction. Since you're only earning $24,000 in the months before your FRA, you're well below the limit and won't face any withholding. And yes, applying in December for March benefits is the correct timing. Your first payment will arrive in April (payments are for the previous month).
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Mohammad Khaled
•Thank you for the detailed explanation. One more question - if I decided to keep working AFTER my FRA, there's no earnings limit at all, right? Like if I decided to work part-time starting in April, they wouldn't reduce my benefits regardless of how much I earn?
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Ella Cofer
man i got so confused with all this FRA stuff when i applied. ended up taking benefits at 65 just to avoid the headache lol. probably left money on the table but whatever.
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Alina Rosenthal
•That's unfortunate - claiming before your FRA means you received a permanently reduced benefit. For someone with an FRA of 67, claiming at 65 results in a 13.3% permanent reduction. This is why understanding these rules matters so much financially.
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Miguel Harvey
To the original poster - after you reach FRA, there is ABSOLUTELY NO earnings test. You can earn millions and still get your full SS benefit. This is one of the biggest advantages of waiting until FRA to claim. And to be super specific about your application: You can apply up to 4 months before you want benefits to begin, but be crystal clear on the application that you want benefits to START in March 2025. Don't just apply "for retirement" without specifying the start month, or they might default to starting them as soon as possible!
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Mohammad Khaled
•Thanks for emphasizing this! I'll make sure to clearly specify March 2025 as my start month on the application. Really appreciate all the helpful advice from everyone.
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Ashley Simian
SSA website is useless for explaining this stuff clearly. And good luck getting someone on the phone who actually understands the rules. The whole system is designed to confuse people IMO.
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Taylor To
•While the rules can be complex, SSA actually has good resources. Their publication "How Work Affects Your Benefits" explains the earnings test in detail. The online application also has tooltips and help sections. But I do agree that speaking with a knowledgeable representative can sometimes be challenging due to their call volume.
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