Social Security deductions after reaching FRA - do they stop if you continue working without collecting?

You absolutely cannot opt out of FICA taxes just because you've reached your Full Retirement Age. As long as you're working and earning wages, FICA taxes (which include Social Security and Medicare) are mandatory regardless of your age or whether you're collecting benefits. Your HR department person who said you could opt out is completely wrong. The only exceptions are for certain state/local government employees with pension plans or certain religious organizations, but those are very specific situations that have nothing to do with reaching FRA.

I think your confusing FICA taxes (which u have to pay) with actual SS benefits. When u reach FRA, the earnings test goes away so u can work and earn as much as u want without any reduction in benefits. But thats only if ur actually collecting SS. In your case since ur not collecting yet, this doesnt even apply to u. But ya FICA is mandatory for everybody who works no matter how old.

I've actually worked past my FRA for almost 4 years now (I'm 70) and yes, every paycheck still has FICA deductions. BUT there is good news - those additional years of work can increase your eventual benefit amount! SSA calculates your benefit using your highest 35 years of indexed earnings. So if you're earning more now than you did in some of those earlier years (adjusted for inflation), working longer will bump up your monthly benefit. So while you can't avoid the FICA tax, you are potentially increasing your future monthly checks.

My sister went through this exact same thing!!!! She worked till 70 and was FURIOUS she had to keep paying SS taxes. She said it felt like robbery since she was already maxed out on benefits. Sorry but theres no escaping the tax man lol

Trying to reach SSA to get official clarification on questions like this can be incredibly frustrating. I was in a similar situation and spent days trying to get through on their 800 number. I finally used Claimyr (claimyr.com) which got me connected to an agent in about 20 minutes instead of hours of redials. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU. The agent confirmed that yes, FICA taxes continue regardless of age as long as you're working, but also explained exactly how my continued work would increase my benefit calculation.

To add some additional clarity to this discussion: 1. FICA taxes (6.2% for Social Security + 1.45% for Medicare) continue regardless of age as long as you're working for wages 2. Working past FRA while delaying benefits has two advantages: - You get Delayed Retirement Credits (8% per year) by waiting to claim - You potentially replace lower-earning years in your benefit calculation 3. The Social Security benefit is calculated using your highest 35 years of earnings, indexed for inflation 4. If you've worked less than 35 years, additional work years fill in zeros in the calculation 5. If you've worked more than 35 years, higher-earning years replace lower-earning years So while you can't escape FICA taxes, your strategy of working longer while delaying benefits until 70 will maximize your eventual monthly benefit amount.

Thank you all for the clarification. I guess my HR person who said I could opt out was misinformed. I'll plan on continuing to pay FICA taxes, but it's good to know these additional years of higher earnings will likely increase my benefit when I do claim at 70. I appreciate everyone's input!

hey does anyone know if theres a maximum amount of FICA tax you have to pay each year? i thought i heard theres a cap or something

As someone who recently went through this exact situation, I can confirm what others have said - FICA taxes are mandatory as long as you're working, regardless of age. I hit my FRA at 66 and 8 months and kept working until 69, and every single paycheck had those deductions. It's frustrating at first, but I found it helpful to think of it as an investment rather than a tax loss. Those extra high-earning years at the end of my career significantly boosted my monthly benefit calculation. When I finally claimed, my benefit was about $380 higher per month than it would have been if I had stopped working at FRA. Over the course of retirement, that more than makes up for the FICA taxes I paid during those extra working years. Your HR department really should get their facts straight on this - it's causing unnecessary confusion for employees planning their retirement.