Social Security earnings limit confusion - start SS at FRA in June or wait until end of year for retroactive?

Congrats on hitting FRA soon! I think once you hit your full retirement age the earnings limit doesn't apply anymore? At least that's what I remember from when my husband started collecting. So you should be able to earn as much as you want after May without any reduction. Not 100% sure about the retroactive part though.

This is a common area of confusion. Let me clarify how the earnings limit works in your situation: 1. For 2025, the monthly earnings test applies in the year you reach FRA. For months BEFORE you reach FRA (January-April 2025), you'll be subject to the earnings limit (approximately $60,000/year for 2025, or $5,000/month). 2. Once you reach FRA in May 2025, the earnings test DISAPPEARS completely. You can earn unlimited income without any reduction in benefits. 3. For the retroactive option: If you wait until December and request 6 months back-pay, you'd get benefits from June-December (all months after FRA). Since these months are all after FRA, your $54,000 income won't reduce your benefits at all. 4. The real question is whether your January-April earnings would affect you, but based on your projected $54,000 annual salary (about $4,500/month), you should be under the monthly limit anyway. My advice: Either approach works financially, but starting in June gives you benefits sooner rather than waiting for a lump sum in December.

Yes, you'll receive the same amount either way, but there's one important thing to consider - retroactive benefits are paid as a lump sum, which could potentially push you into a higher tax bracket for 2025 if you take the December+retroactive option. If you start in June, the benefits are spread across more months for tax purposes. Also, make sure you understand that any SS benefits you receive will be taxable if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds certain thresholds. With $54,000 in earnings plus SS benefits, you'll likely have at least 50% of your benefits subject to federal income tax.

Am I the only one who's been trying to get through to SSA for WEEKS to ask these exact kinds of questions?!? I keep getting disconnected or wait for hours only to be told I need to call back. I've tried going to the local office but appointments are backed up for months. HOW is anyone supposed to make informed decisions about their benefits??!!

My husband was in a similar situation last year. He started getting his checks right away after FRA rather than waiting. For us it was nice having the steady monthly income rather than waiting for a lump sum. One less thing to worry about!

One other consideration - your benefit amount doesn't increase by waiting after FRA unless you're deliberately delaying to earn delayed retirement credits. Since you're choosing between taking benefits at FRA (June) versus taking retroactive benefits back to FRA (still effectively starting in June), there's no financial advantage to waiting until December to file. The only real difference is cash flow timing - monthly payments starting in June, or a lump sum plus monthly payments starting in December.

Wait im confuused. I thought u get higher benefits every month u delay after FRA? My neighbor keeps telling everyone to wait till 70 for max benefits. So wouldnt waiting till December give u higher amount even with backpay??

One thing I just thought of - does your employer offer a 401k? If you're still working, you might want to increase your contributions for the rest of 2025 to offset some of the additional income from Social Security. Just a thought for tax planning!

Thanks for all the great advice everyone! I'm definitely going to file in May/June when I hit my FRA. I'll also look into increasing my 401k contributions - that's a great suggestion for managing the tax situation. This has been incredibly helpful!