Social Security earnings limit confusion - can I earn $59,520 before reaching my FRA in July 2025?
I'm trying to understand the earnings limit rules as I approach my full retirement age (FRA). I was born in December 1958, which puts my FRA in July 2025. I started collecting my SS benefits early in September 2022 when I retired, but I've just been asked to return to my previous employer on a part-time basis. For 2024, I'm carefully monitoring my earnings to stay under the annual limit of $22,320. But I'm confused about how the limit works in 2025 when I reach FRA mid-year. I've read that the higher limit (around $59,520 for 2025) applies in the months of the year before you reach FRA. Does this mean I can earn the FULL $59,520 in just the first half of 2025 before hitting my FRA in July? Or is that amount somehow prorated? Once I hit FRA in July 2025, I understand there's no earnings limit at all. But I'm mostly confused about how much I can earn in those first 6 months of 2025 before I reach FRA. Can someone explain this clearly?
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Khalid Howes
I think your understanding isn't quite right. The $59,520 (or whatever it ends up being for 2025) is the maximum for the MONTHS before you reach FRA in that year. So you can't just earn all of it in January and be fine. The SSA looks at how much you earn per month. At least that's what the lady at my local office told me!!
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Ben Cooper
•That's not correct. SSA does NOT calculate monthly earnings for the year you reach FRA. The higher limit ($59,520 projected for 2025) applies to the total earnings from January 1, 2025 up until the month you reach FRA. You can earn all of it in January if you want - SSA only counts earnings before the month you reach FRA. After that month, there's no limit. This is different from how they handle normal years before FRA where they do look at monthly earnings for the annual limit.
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Naila Gordon
this happened to me last yr. i could earn as much as i wanted BEFORE i hit my age date. didn't have to be spread out. but make sure u dont go over or they'll take $1 for every $3 u earn over. its confusing cause theres like 3 different limits depending on where u are with age
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Rita Jacobs
•Thanks for sharing your experience. So if I understand correctly, I could theoretically earn the entire $59,520 in January-June 2025, and as long as I don't go over that amount before July (my FRA month), I'd be fine? And then after July, no limits at all? It just seems too good to be true.
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Cynthia Love
You've got it mostly right, but let me clarify the earnings test for the year you reach FRA: 1. For 2024, you're correctly staying under the lower limit ($22,320). 2. For 2025, the special higher limit (projected to be around $59,520) applies only to earnings from January 1, 2025, through June 2025 (the month before you reach FRA). 3. This higher limit is NOT prorated - you can earn the full amount in any distribution during those months. You could earn it all in January if you wanted to. 4. If you do exceed the higher limit during those months, SSA withholds $1 in benefits for every $3 over the limit (not the $1 for $2 that applies in earlier years). 5. Starting July 2025 (your FRA month), there is NO earnings limit whatsoever. So yes, you can earn up to $59,520 (or whatever the 2025 limit is) in the first half of 2025, and then unlimited amounts after reaching FRA in July.
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Darren Brooks
•This is why I took SS at 62 even though everyone said wait! I knew I could get 5 years of benefits while still working part time, then work FULL time when I hit FRA next month! Literally the best of both worlds if u plan it right.
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Rita Jacobs
Thank you all for the clarifications. The rules are more generous than I expected for the FRA year. I just want to make absolutely sure I understand correctly: - 2024: Stay under $22,320 for the entire year - 2025 (Jan-June): Can earn up to $59,520 total before reaching FRA in July - 2025 (July onward): Unlimited earnings This helps tremendously with planning my work schedule. I might actually increase my hours a bit more in early 2025 knowing this!
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Rosie Harper
•Just make sure you keep track of what you actually EARN not what you're PAID. My brother got caught by this - the earnings limit goes by when you EARN the money, not when you receive it. So if you work in December 2024 but get paid in January 2025, that still counts toward your 2024 limit! SSA goes by when you did the work, not when the check arrives.
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Naila Gordon
dont waste ur time calling SSA to confirm this stuff, you'll be on hold for HOURS. i wasted two entire days trying to get through to someone when i needed to confirm my earnings limits last year. never got through!!!!!
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Elliott luviBorBatman
•I had the same issue last month but found a service called Claimyr that got me through to SSA in less than 10 minutes. It basically waits on hold for you and calls when an agent is ready. Saved me hours of frustration. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU. Much easier than waiting on hold all day just to check your earnings limits.
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Cynthia Love
One last important point: The earnings limit only affects your benefits while you're under FRA. Once you reach FRA, SSA will recalculate your benefit amount and give you credit for months they withheld benefits due to excess earnings. So even if you lose some benefits due to working, you'll eventually get the money back in the form of a higher monthly benefit starting at FRA. It's not a true "penalty" - more like a deferral of benefits.
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Rita Jacobs
•I had NO idea about this recalculation! So even if I had gone over the limit, I wouldn't permanently lose those benefits? That's a huge relief to know. The SSA doesn't make these details very clear on their website. Thanks for explaining this so thoroughly.
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Khalid Howes
Ugh, all these rules make my head hurt!! I'm 63 and just trying to figure out if I should keep working or not. Why does social security have to be so COMPLICATED?? Every time I think I understand something, there's another rule or exception!
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Ben Cooper
•It's definitely complex, but there's a method to the madness. The earnings test is designed to reflect the original purpose of Social Security - replacing lost income in retirement. The rules balance allowing some work while collecting benefits against the program's primary purpose. Once you understand the reasoning, the rules make more sense, even if they're administratively complicated.
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