Social Security clarification - no 45-hour monthly limit for self-employed retirees?

Your SSA rep is correct. The "45 hour per month" rule is part of what Social Security uses to determine if you're RETIRED from self-employment, but it's only one of several factors they consider and not a strict limit like the annual earnings test. As long as you stay under the $23,400 annual earnings limit for 2025 (for those under Full Retirement Age), you're fine. The monthly hours only become relevant if SSA questions whether you've actually retired from your business. Source: I went through this exact same confusion last year. My CPA was telling me one thing, SSA another. I finally got clarification by requesting a written determination from SSA.

The SSA rep was right but missing some important context. Here's what you need to know: The earnings limit ($23,400 in 2025 for those under FRA) definitely applies to you. For every $2 you earn over that limit, $1 will be withheld from your benefits. The 45-hour per month guideline is part of what's called the "services test" - it's used when SSA evaluates whether self-employed individuals have actually retired. Essentially, if you work more than 45 hours/month in your business, SSA MIGHT consider you "not retired" regardless of income. However, in practice, they rarely apply this unless: 1. Your income is suspiciously low compared to previous years 2. You're attempting to shift income to avoid the earnings limit 3. Someone reports potential fraud If you're legitimately reducing your work and staying under the earnings limit, you're likely fine. But technically, the 45-hour guideline does exist.

im retired but still do consultin work to and worry about this same thing!! my neighbor said they count ur hours AND money which is why i try to charge more per hour but work less lol. but i think as long as ur under the money limit ur good... thats what i've been doing for 2 years and havent had problems yet

My brother-in-law got caught in this exact situation last year. He was under the earnings limit but worked 60+ hours most months in his landscaping business. SSA determined he wasn't really "retired" and suspended his benefits for several months until he could prove he had substantially reduced his services. The 45-hour rule IS real, but they don't automatically check or enforce it. It usually only comes up if there's an audit or review of your situation. So while the rep wasn't technically wrong, I'd still recommend staying under 45 hours most months if possible, just to be safe.

I spent 2 hours on hold with SSA trying to get clarification on this exact question last month. The first rep told me hours don't matter at all, then I got transferred to a "technical expert" who said hours definitely matter. I was so frustrated I hung up. Has anyone tried using that Claimyr service to get through to SSA faster? I saw it mentioned in another thread and there's apparently a video showing how it works: https://youtu.be/Z-BRbJw3puU I need to call back and get a definitive answer from a supervisor or something, but I can't spend another 2+ hours on hold.

When I retired 2 yrs ago my accountant told me that what matters is "material participation" in your business. If you're still running day-to-day operations and making all decisions, SSA might say you're not really retired even if under the $ limit. but if you've cut back to just occasional consulting and someone else handles most of the business, they usually don't care about exact hours. at least that's what worked 4 me

Let me clarify this with the actual rules from SSA: For self-employed individuals, Social Security applies TWO tests: 1. The Earnings Test: In 2025, if you're under Full Retirement Age, you can earn up to $23,400 without reduction in benefits. 2. The Services Test: This is where the 45-hour guideline comes from. It states that if you work more than 45 hours per month in self-employment, you are considered not retired regardless of earnings. If you work between 15-45 hours, they consider other factors. Less than 15 hours and you're generally considered retired. HOWEVER - and this is key - the Services Test is not automatically applied to everyone. It's primarily used when there's a question about whether income is being deferred or misreported to avoid the earnings test. So the SSA rep was technically correct that most people just need to worry about the earnings limit, but incomplete in not explaining that the hours rule does exist in their policies.

my uncle had his benefits stopped cuz they said he wasnt really retired from his plumbing business even tho he was under the money limit!! he had to appeal and everything. such a headache