Social Security earnings limit confusion - Filed at 65, earned $67K in 2024, now facing reduction?

You're running into the Social Security earnings test, which applies before you reach your Full Retirement Age (FRA). For 2024, the annual limit is $22,320 if you're under FRA for the whole year. Since you've earned $84,000, you're WAY over that limit. Basically, SSA will withhold $1 in benefits for every $2 you earn above the limit. With your earnings being about $62,000 over the limit, they'd withhold about $31,000 in benefits. If your monthly benefit is around $2500 (reduced for early filing), that means they'd withhold ALL your benefits for 2024 and possibly some of 2025. If you wait until January 2025 to file, you start with a clean slate for the earnings test. This is probably your best option unless you really need the money right now.

i had this same problem last year when i retired in october. dont apply until janurary. u will just lose all the payments in 2024 with how much u made.

The part of the application asking if you made over $2,270 in any month is specifically checking for the monthly earnings test, which only applies for the remainder of the first calendar year you receive benefits. Here's a clearer breakdown of your options: 1) File now (October 2024): - Your benefits would technically start November 2024 - But because you earned $84,000 in 2024, you're $61,680 over the annual limit - SSA will withhold approximately $30,840 in benefits ($1 for every $2 over) - With your monthly benefit around $2,950 (minus early filing reduction), you'd likely receive $0 for all of 2024 - They might even withhold some payments in early 2025 to satisfy the full withholding 2) File in January 2025: - Your benefits would start January 2025 - 2024 earnings would not affect your 2025 benefits - You'd get your full monthly amount (minus the early filing reduction) - No money lost to the earnings test Waiting until January makes the most financial sense in your situation.

The early filing reduction would be very similar whether you file in November 2024 or January 2025. You're talking about a difference of only 2 months of reduction (approximately 1% of your benefit amount). For reference, benefits are reduced by: - 5/9 of 1% for each month before FRA (up to 36 months) - 5/12 of 1% for each additional month beyond 36 months So if your FRA is 67, filing at 65 years and 0 months means a reduction of about 13.3% from your full benefit amount. The difference between filing at 64 years 10 months vs 65 years 0 months is minimal compared to what you'd lose to the earnings test.

Just went through this exact situation last year! I was going to file in November after stopping work in July, but my earnings for the year were about $78K. The SSA rep told me I would lose most of my payments for the rest of the year AND some in early 2024. I waited until January to file and I'm glad I did. Clean slate for the earnings test, and the slight additional reduction for filing 2 months later was minimal. One thing to note - if this is the last year you're working, once you reach FRA, you can request a recalculation called an "adjustment to elimination of the earnings test" where they'll give you credit for the months they withheld benefits due to the earnings test. But waiting till January is simpler.

Wait wait wait... is your FRA 67 or 66? You said you'll be 65 in January 2025 but also mentioned being 66 in November 2024? These dates don't add up. The advice changes completely depending on your actual age because the earnings test is MUCH more lenient in the year you reach FRA.

Since you've confirmed you'll be 65 in January 2025 with an FRA of 67, waiting until January 2025 to file is definitely your best option. Regarding your wife's benefits: 1) If she's 61 now and turning 62 soon, she can file for spousal benefits once you've filed for your retirement benefits 2) However, she would only get 70% of her spousal amount if she files at 62 (the reduction for taking spousal benefits early) 3) If she has her own work record, she should compare her own benefit amount with the spousal benefit. She'll only receive the higher of the two, not both But that's a separate decision - for your situation, January 2025 is the smart time to file.

You're right to question this - let me clarify the spousal benefit calculation: 1) The maximum spousal benefit is 50% of the worker's PIA (Primary Insurance Amount) if the spouse claims at their own FRA 2) If the spouse claims early, it's reduced: - At age 62, the reduction is to about 32.5% of the worker's PIA - Each month of early claiming reduces the percentage 3) The spouse gets the higher of: - Their own retirement benefit - Their reduced spousal benefit So if the original poster's PIA is $2,950, the maximum spousal benefit would be $1,475 at her FRA. If she claims at 62, it would be reduced to about $957 (approximately 32.5% of $2,950). The $1,075 figure mentioned might be her own benefit amount rather than a spousal benefit.

Have you tried calling the SSA to get specific answers about your situation? I spent THREE DAYS trying to get through last month when I had questions about my benefits. Kept getting disconnected or waiting for hours. Finally I used Claimyr (claimyr.com) to connect with an agent in under 10 minutes. They have a service that gets you through to a real person at SSA without the wait. Saved me so much frustration! There's a video showing how it works: https://youtu.be/Z-BRbJw3puU They can look at your specific earnings and tell you exactly how the earnings test would affect your benefits if you file now vs. January.

One more important thing to consider: if you're planning to file in January 2025, you should actually submit your application in October or November 2024 (up to 3 months before you want benefits to begin). SSA lets you apply up to 3 months before you want your benefits to start. This gives them time to process your application so your payments can begin promptly in January. Just make sure to specify January 2025 as your benefit start date on the application.

dont forget taxes too! ur ss benifits will be taxed if ur combined income is over the limit. with 84k already for 2024 ur gonna have 85% of ur benifits taxed if u get any this year.

Thank you all for the incredibly helpful advice! I'm definitely going to wait until January 2025 to start my benefits, but I'll apply in November 2024 to get the ball rolling. I'm relieved to understand that my 2024 earnings won't affect my 2025 benefits as long as I start in January. And I'll look into that Claimyr service to speak with an SSA agent about the specifics of my situation. For my wife, we'll need to compare her own benefit at 62 versus the reduced spousal benefit to see which would be higher. Looks like we have some calculations to do! I really appreciate everyone taking the time to explain everything so clearly. This stuff is complicated and it's easy to make costly mistakes when you don't fully understand the rules.