Social Security earnings limit confusion - do limits reset at age 66 or wait until FRA in 2026?

The earnings test is more complicated than most people realize. For the year you reach your full retirement age (but before the actual month of FRA), you're under a higher earnings limit - about $59,520 for 2025. BUT the key point is the earnings limit only applies to earnings BEFORE the month you reach FRA. Once you reach the month of your FRA, there's NO earnings limit at all anymore, even if you haven't hit your exact FRA date yet. So in your case, once you turn 66 in April 2025, any earnings from May 2025 onward wouldn't count toward the limit. Only your January-April 2025 earnings of $42,000 would matter, which is below the threshold anyway.

no thats not right actually. the earnings limit stops in the MONTH you reach your FRA not just when u turn 66. those aren't the same thing anymore! your FRA is 67 and 2 months from what u said so u still have the limit until march 2026

The SSA rules around this are SO CONFUSING!! I went through this exact headache last year when I turned 66. Let me try to explain what I learned after like 5 hours of research and 3 calls to the SSA (which were super frustrating btw). There are actually TWO different earnings limits: 1. In years BEFORE the year you reach FRA: lower limit (about $21,240 in 2023) 2. In the year you reach FRA: much higher limit (about $56,520 in 2023) But here's the important part - for #2, they ONLY count earnings from January up to the MONTH you reach FRA, not your exact FRA date! So if your FRA is 67+2 months but you turn 66 in April 2025, you'd have: - Jan-Apr 2025: Higher earnings limit applies ($42k is fine) - May 2025 and beyond: NO LIMIT! Hope that helps someone... I nearly pulled my hair out figuring this out!

I finally got through to SSA last week about this exact question! I used a service called Claimyr (claimyr.com) after being on hold for HOURS trying to reach someone at Social Security - they got me through to an agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Anyway, the SSA agent confirmed what others here said: the earnings limit only applies up to the MONTH you reach FRA. So in your case, earnings after April 2025 won't count toward any limit, even though your actual FRA isn't until 2026. And since your pre-April earnings are below the threshold, you won't have any benefit reductions at all. The agent did mention they'll still want to review your earnings record in early 2026 when you file your 2025 taxes, just to verify everything.

Just be careful you don't mess up your medicare by working to long!! My sister kept working past 65 and now she has to pay extra for her part B for the rest of her life because of her income being to high!!!!

To give you the precise information: For someone turning 66 in April 2025 with FRA of 67+2 months, here's what applies: 1. From January through April 2025, the higher earnings limit applies (approximately $60,840 for 2025 based on projected COLA increases). 2. Starting May 1, 2025 (the month after you turn 66), there is NO earnings limit whatsoever, even though you haven't reached your full retirement age yet. 3. Your benefits will be permanently reduced by approximately 7.78% for claiming 14 months before your FRA. This reduction is separate from the earnings test. 4. The SSA will still review your 2025 earnings in 2026 after you file taxes to ensure your January-April earnings didn't exceed the limit. These rules are covered in the SSA Program Operations Manual System (POMS) section RS 02501.021.

To clear up the confusion once and for all: 1. The annual earnings test has different rules for 3 periods: - Before the year you reach FRA: Stricter limit (~$21k/year) - During the year you reach FRA, but before your FRA month: Higher limit (~$60k/year) - The month you reach FRA and beyond: NO LIMIT 2. FRA is your full retirement age (67+2 months for the OP) 3. The rule that's confusing everyone: The month you turn 66 is NOT necessarily related to these limits UNLESS 66 happens to be your FRA (which it isn't for anyone born after 1954) 4. For the OP, turning 66 in April 2025 but with FRA in March 2026: - Jan-Apr 2025: Higher earnings limit applies (during FRA year) - May 2025-Feb 2026: STILL has the higher earnings limit - March 2026 onward: No limit (reached FRA month) I apologize for my earlier mistake. Please refer to the SSA website for the official rules.

I need to correct some misinformation that's been shared. The earnings test rules are: 1. In years before the year you reach FRA: Lower limit applies 2. In the year you reach FRA: Higher limit applies, but ONLY counts earnings up to the MONTH you reach FRA 3. Month of FRA and after: No limit To be clear: The earnings test does NOT stop at age 66 for everyone. It stops in the month you reach your Full Retirement Age. For someone born in 1959 (like the OP appears to be), FRA is 66 and 10 months. So if they turn 66 in April 2025, their FRA would be February 2026. The earnings limit would apply to earnings from January 2025 through January 2026, and would stop completely in February 2026. I recommend checking the SSA's retirement planner for detailed information: https://www.ssa.gov/benefits/retirement/planner/whileworking.html

I want to clear up one final point of confusion here. The OP stated their FRA is 67 and 2 months (March 2026), but some responses are using different FRA calculations. For someone turning 66 in April 2025, if their FRA is indeed 67+2 months, that would make them born in January 1959, and their FRA would be February 2026 (66+10 months), not March 2026. However, taking the OP at their word that their FRA is March 2026, here's what applies: - January 2025 through February 2026: Higher earnings limit (~$60,000) applies - March 2026 and beyond: No earnings limit The key takeaway is that the earnings test stops in the MONTH you reach your actual FRA, not at age 66. I'd strongly recommend the OP verify their exact FRA date on their Social Security statement or by calling SSA, as this affects when the earnings limits end.

I'm new to this community and have been lurking while trying to understand these same rules for my own situation. This thread has been incredibly enlightening! I wanted to add one resource that might be helpful - the SSA Publication 05-10069 "How Work Affects Your Benefits" explains the earnings test rules pretty clearly. You can download it directly from ssa.gov and it has examples that are similar to your situation. Also, I noticed some people mentioned difficulty getting through to SSA by phone. In addition to the 7 AM calling tip, I've had success using their online "Contact Us" form for non-urgent questions. They usually respond within a week with detailed written answers you can refer back to. One last thing - make sure to keep detailed records of your monthly earnings throughout 2025. Even though your January-April total of $42,000 is well under the limit, SSA may ask for documentation when they review your case after you file your 2025 taxes. Having pay stubs organized by month can save you headaches later. Hope this helps, and thanks to everyone who shared their experiences. This community is such a valuable resource for navigating these complicated rules!

I'm new to this community but wanted to share some additional clarity on this topic since I work in retirement planning and see this confusion frequently. The earnings test has three distinct phases that people often mix up: 1. **Before the year you reach FRA**: Lower annual limit (~$23,400 for 2025) 2. **During the year you reach FRA, but before the FRA month**: Higher annual limit (~$62,160 for 2025) 3. **Starting the month you reach FRA**: NO earnings limit whatsoever For your specific situation with FRA in March 2026: - Your $42,000 from Jan-April 2025 falls under the higher limit, so you're fine - From May 2025 through February 2026, you'll still have the higher earnings limit - Starting March 2026, you can earn unlimited amounts The confusion often comes from older rules when FRA was 65-66 for everyone. Now that FRA is 67+ for most people, there's a significant gap between turning 66 and reaching actual FRA. One important note: Even if you exceed the earnings limit, it's not "lost money" - SSA recalculates your benefits upward at FRA to account for months they withheld benefits. But it's still generally better to stay under the limit for cash flow purposes. I'd strongly recommend verifying your exact FRA date on your SSA.gov account, as this determines when your earnings restrictions end completely.