Do Social Security monthly earnings limits apply in second year after retirement? Still under FRA
I need some clarity on SS earnings limits. I started receiving Social Security in April 2024 at 64 (still under my FRA of 67). Last year I worked part-time and carefully stayed under both the annual limit ($21,240) and the monthly limit ($1,770) after I started collecting. This year I'm still working part-time and will definitely stay under the 2025 annual limit ($22,320), but I'm confused about whether the monthly limit ($1,860) still applies in my second year of benefits? Some months I might earn $2,100 but my annual total will be well under $22,320. Will I lose benefits for those specific months that go over $1,860 even though my yearly total is fine? The SSA pamphlet wasn't clear on this second-year situation.
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Aiden Rodríguez
The monthly earnings test only applies during your first year of retirement. After that, only the annual limit matters. So in 2025, you only need to stay under the $22,320 annual limit - you can earn more than $1,860 in some months as long as your total for the year stays under the annual limit. This is one of the most misunderstood aspects of Social Security rules!
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Maya Patel
•Thank you! That's a huge relief. My work involves seasonal ups and downs, so some months I might get close to $2,200 while others I barely work at all. As long as I'm tracking my annual total, I should be fine then.
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Emma Garcia
im pretty sure ur suppose to stay under both limits all the time. thats what the lady at SS told my brother when he started collecting. better check with them direct
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Ava Kim
•That's not accurate. I went through this last year. The monthly limit ONLY applies in your first calendar year of retirement. After that, SSA only looks at your annual earnings. So many people get this wrong, even some SSA employees sometimes!
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Ethan Anderson
The first commenter is correct. The monthly earnings test only applies during what Social Security calls your "Grace Year" - which is the first calendar year you receive benefits AND have months where you don't earn over the limit. After that, SSA only applies the annual earnings test. This means for 2025, you only need to ensure your total earnings stay under $22,320. The distribution by month doesn't matter after your first year. If you do exceed the annual limit, they'll deduct $1 in benefits for every $2 you earn above the limit. But again, this is based on annual earnings, not monthly, since you're past your first year.
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Layla Mendes
•My brother just got CHARGED for an overpayment because he thought the same thing!!! They looked at his YEARLY income not monthly. The SSA is so confusing sometimes I swear they make it complicated on purpose
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Lucas Notre-Dame
Has anyone actually tried calling the SS office to get this clarified? I've been trying for WEEKS to get through to someone who can explain my earnings limit situation (similar to yours but I'm getting survivors benefits). It's impossible to reach a human!!!
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Aria Park
•I had the same problem trying to get through to someone about my earnings test questions. I finally used a service called Claimyr (claimyr.com) that got me connected to an SSA agent in about 20 minutes instead of waiting on hold for hours. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU The agent confirmed what others are saying - only the annual limit matters after your first year. Such a relief to finally get a clear answer directly from SSA.
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Ava Kim
This rule tripped me up too when I started collecting at 63! The monthly earnings limit ONLY applies during your first calendar year receiving benefits. After that, they just look at your annual earnings. So yes, in 2025 you could make $5,000 in one month and $0 in others, as long as your total for the year stays under $22,320. AND DON'T FORGET this all goes away once you reach your Full Retirement Age - then you can earn as much as you want with no penalty! I'm counting down the months until then!
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Maya Patel
•Thank you for confirming! And yes, I'm definitely looking forward to hitting FRA in 2028 so I can stop tracking all this. Do you know if I need to report my earnings regularly to SSA or do they just get this information from my tax returns?
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Aiden Rodríguez
One more important point: make sure you're reporting your expected earnings to SSA each year. While they will eventually get the information from your tax returns, if you earn more than expected and don't tell them in advance, you could end up with an overpayment that they'll want back later. It's better to estimate a bit high and have them withhold some benefits than to deal with an overpayment notice.
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Emma Garcia
•thats good advice! my cousin got hit with a $4k overpayment and now they take money from every check til its paid back. total nightmare!!!
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Layla Mendes
I'm still confused about this whole thing - does anyone know if this is the same for disability benefits?? Or is SSDI different from regular retirement? My husband is on disability but wants to try working part time.
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Ethan Anderson
•SSDI has completely different rules than retirement benefits. For SSDI, there's a Trial Work Period and then Substantial Gainful Activity limits that apply. You should create a separate post about SSDI work rules as they're entirely different from retirement benefit earnings tests.
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Maya Patel
Thanks everyone for the clear answers. I'm relieved to know that only the annual limit applies in my second year (2025). I've been stressing about turning down extra hours in certain months, but now I can just focus on staying under the yearly total of $22,320. I'll make sure to report my expected earnings to SSA as suggested to avoid any surprise overpayments. This forum has been so much more helpful than the official publications!
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