Social Security earnings limit question: Can I work just 6 months and earn $22,320 before FRA?
Hi everyone! I'm planning to start my Social Security retirement benefits next year at 63, but I still want to work part-time. I understand there's an annual earnings limit of $22,320 for 2025 if you're under Full Retirement Age. My question is: Does it matter WHEN during the year I earn this money? For example, could I work January-June, earn just under the $22,320 limit, and then not work at all July-December? Or does SSA expect the earnings to be spread throughout the year (like $1,860/month max)? I'm trying to plan my work schedule for next year and don't want to trigger any benefit reductions or have to pay anything back. Thanks in advance for any insights!
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Cameron Black
The anual limit applies to the total year, not monthly. You can make all ur money in 1 month if u want as long as total for year stays under limit. SSA doesn't care how you distribute it.
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Victoria Jones
•Thanks for the quick reply! That's a relief to hear. So I could potentially work intensively for half the year and then enjoy my retirement the rest of the year without worrying about SSA penalties. That makes my planning much easier.
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Jessica Nguyen
I can clarify this for you. The Social Security earnings limit is indeed an annual total, not a monthly requirement. However, there is a special rule for the first year you retire: There's something called the "monthly earnings test" that applies only during the first year you claim benefits. During that first year, SSA will not count earnings in months where you earn below the monthly limit ($1,860 in your case) AND don't perform "substantial services" in self-employment. But after that first year, SSA only looks at your annual total. So yes, after your first year on benefits, you could work January-June, earn up to $22,320, and then not work the rest of the year without any benefit reduction.
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Victoria Jones
•Thank you for that detailed explanation! I wasn't aware of the special rule for the first year. Since I'm planning to start benefits in January and work right away, I'll need to be careful about that monthly limit for 2025. Then in 2026, I can be more flexible with when I earn the money. Really appreciate the clarification!
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Isaiah Thompson
Just be carefull to NOT go over the limit even by $1!!! My husband went over by $84 last year and they sent us a notice that we owed $1,240 back!!! It took 3 months of calling to fix and we NEVER could get through to anyone. The SSA phone system is TERRIBLE!!!!!
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Ruby Garcia
•I had the same problem but found a service called Claimyr that got me through to an agent in about 20 minutes instead of waiting for hours or getting disconnected. They connect you directly with the SSA. Saved me so much frustration! You can see how it works at https://youtu.be/Z-BRbJw3puU or check out claimyr.com. Worth it when you're dealing with overpayment issues that need a human to resolve.
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Alexander Evans
i think everyone is missing somethin important - if you're just turning 63 and claiming early, remember your FRA is probably 67. So you'll be subject to earnings limit until you hit 67, not just for one year. And the limit changes each year with COLA. also important to know that the earnings limit only applies to EARNED income (job/self-employed), not investment income, pensions, etc.
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Jessica Nguyen
•That's an excellent point about the duration of the earnings test. The annual earnings limit applies to all years before FRA, not just the first year of benefits. The first-year monthly test is in addition to, not instead of, the annual test. Also correct that only earned income counts toward the limit. Unearned income like investments, pensions, annuities, interest, and capital gains don't count against the earnings test limit. And in the calendar year you reach FRA, there's a higher earnings limit that applies only to the months before your FRA month ($59,520 for 2025 in the months before FRA).
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Evelyn Martinez
Something nobody mentioned yet: if you do go over the yearly limit, Social Security doesn't take ALL your benefits away. They reduce benefits by $1 for every $2 earned above the limit. So if you earned $23,320 (which is $1,000 over the limit), they'd only reduce your annual benefits by $500. Also worth knowing: any benefits withheld because of excess earnings aren't truly "lost" - SSA recalculates your benefit when you reach FRA to give you credit for months when benefits were withheld.
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Victoria Jones
•Oh that's good to know! So even if I accidentally go over, it's not as catastrophic as I feared. And I had no idea they'd recalculate benefits later to account for withheld months. Thank you for explaining that part!
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Benjamin Carter
My cousin got in big trouble with this. She worked part time but then took a bonus at the end of the year and completely forgot about the SS limits. Ended up having to pay back thousands! Make sure you track EVERYTHING carefully and remember things like bonuses, commissions, retroactive pay, vacation payouts etc all count toward the limit. Don't just look at your regular paychecks.
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Victoria Jones
•Yikes, that's a scary situation! Thanks for the warning. I'll be sure to account for any potential bonuses or extra payments when tracking my yearly total. I definitely want to avoid any surprise overpayments.
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Cameron Black
Just curious why ur taking SS at 63 and still working??? Wudnt it make more sense to just keep working and wait till FRA or even 70 to start SS? Your monthly payment wud be way higher and no earnings limit to worry about.
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Victoria Jones
•That's a fair question! I've thought about it a lot. Basically, I want to semi-retire now while I'm still healthy enough to enjoy it. My job is pretty demanding physically, and I'm ready to scale back. I've run the numbers, and even with the reduced benefit, this approach works better for my personal situation. Plus, by working part-time, I can still add a bit to my savings while having much more free time.
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Maya Lewis
I just went through this exact situation last year! You absolutely CAN earn the entire amount in a shorter period. I worked January-April, made about $21,000, then completely stopped working and had zero issues with SSA. Just make sure you're tracking your YTD earnings carefully. The only thing that tripped me up was I had to explicitly tell my employer I was "retiring" even though I was just quitting that job. This stopped them from contesting my unemployment when I applied for it during the months I wasn't working or collecting SS yet.
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Victoria Jones
•Thank you for sharing your real experience! It's reassuring to hear from someone who's actually done this successfully. Good tip about communicating clearly with the employer too - I might be in a similar situation.
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