Social Security earnings test confusion at FRA - only applies BEFORE birth month?

Your neighbor is absolutely correct. The earnings test ONLY applies in the months BEFORE you reach your full retirement age during that year. Once you hit your FRA month (August in your case), you can earn unlimited income with no reduction in benefits. This is stated clearly on the SSA website. Many people miss this important distinction and think the annual limit applies all year, but it doesn't. Congrats on the job offer - you should take it without any concerns about your SS benefits!

I don't think that's right... I thought the earnings limit applies for the ENTIRE year you reach FRA? My brother got hit with a penalty even though he only started making good money after his birthday month. The SSA rep told him it's about total annual earnings in your FRA year.

No, your brother was given incorrect information. The earnings test absolutely ONLY applies to months BEFORE your birth month in the year you reach FRA. I went through this exact situation last year and confirmed this multiple times with SSA. After your FRA month, there is NO earnings limit whatsoever.

I can confirm this is 100% correct! Here's the exact wording from the SS website: \

ya this happens all the time people dont understand the FRA rules... once u hit ur birth month in your FRA year the earnings test goes away completely. i went thru this last yr and it was fine. take the job!!

Thanks for confirming! Did you have to notify Social Security about your increased earnings after you reached FRA, or did you just start earning more without telling them?

nope didnt have to tell them anything. just started making more $ and nothing happened to my benefits. its all automatic with their system

This rule saved me last year! I turned 66 and 2 months (my FRA) in October 2024 and was so worried about the earnings limit all year. Then I learned that only my January-September earnings counted toward the limit. After October 1st, I could earn as much as I wanted! Made a HUGE difference in my financial planning. Just be sure to keep track of your pre-FRA earnings for the year to make sure you stay under the higher FRA-year limit for those months if possible.

But don't they look at your W-2 at the end of the year? How do they know which earnings came before vs after your birthday month?

Great question. For most people with regular paychecks, SSA can determine monthly earnings from employer reports. However, if you have irregular income or are self-employed, you may need to provide documentation showing when you earned the income. If SSA requests this information, you'll need to prove which earnings came before vs. after your FRA month. Keep good records just in case.

I AM SO ANGRY ABOUT THIS!!! Nobody at SS told me about this rule when I reached my FRA in 2024!!! I turned down a promotion because I thought I'd lose benefits ALL YEAR and now I find out I only needed to worry about the months BEFORE my birthday?!? The SS system is BROKEN and they don't tell people important information like this!!! I lost THOUSANDS because of this!!!!!

Oh no, that's terrible! Have you tried contacting them to explain the situation? Maybe there's something they can do to fix it retroactively?

I've called OVER AND OVER and can't get through to anyone who can help. Always on hold for 2+ hours and then they transfer me and I get disconnected. It's IMPOSSIBLE to get real help from them!!!

I know this is frustrating, but I had a similar issue last month trying to reach someone at SSA about my earnings record. After multiple disconnects, I tried using Claimyr.com and got through to a real person in under 15 minutes. They have this service that basically waits on hold for you and calls when an agent is ready. Saved me hours of frustration. There's a video showing how it works at https://youtu.be/Z-BRbJw3puU. Might be worth a try for getting this resolved.

Thanks I'll check that out. At this point I'll try ANYTHING to get this fixed!

Wait I'm confused about something else - does this same rule apply for people collecting SSDI? Or is this only for retirement benefits? I'm on disability but turning my FRA next year and wondering if I can work more after my birthday month.

This is a different situation for SSDI. When you reach FRA, your SSDI automatically converts to retirement benefits. Before that conversion, SSDI has completely different work rules (SGA limits, Trial Work Period, etc.). After conversion at FRA, the regular retirement rules we're discussing here apply. I'd recommend speaking with an SSA representative about your specific situation as you approach FRA.

Oh thank you! I didn't realize SSDI converts to regular retirement. That makes more sense now. I'll definitely call them before I make any work changes.

My situation was a bit different but related. I turned my FRA in May 2024 but had already stopped working in February. Even though I hadn't reached my FRA yet, because my total earnings for those months (Jan-Feb) were under the higher FRA-year threshold ($56,520 for 2025), I didn't have any benefit reductions at all. So there are really two protections: 1) higher earnings limit in your FRA year, and 2) only counting months before your FRA month.

Thanks for sharing your experience! Do you know if there's a specific form I need to fill out to let SSA know about my earnings situation, or do they track this automatically?

They mostly track it automatically through payroll taxes. If you're concerned, you can proactively report estimated earnings on their website through your my Social Security account. Look for the

This is an important distinction in the Social Security rules that often confuses people. To clarify for everyone:1. In the year you reach FRA, the earnings limit is substantially higher ($56,520 in 2025) compared to years before FRA ($21,240 in 2025).2. This higher limit ONLY applies to earnings in months BEFORE your FRA month.3. Starting with your FRA birth month, there is NO earnings limit whatsoever.4. The benefit reduction in your FRA year is $1 for every $3 over the limit (compared to $1 for $2 in earlier years).So for the original poster, since you reached FRA in August, only your January-July earnings would count toward the limit, and you can earn unlimited amounts from August-December with no benefit reduction.

This is incredibly helpful, thank you! So to be clear, even if I earn $80,000+ for the full year, only the portion I earn from January-July counts toward that $56,520 limit, right?

Exactly correct. Only your January-July earnings count toward the $56,520 limit. Anything you earn from August-December is completely exempt from the earnings test. And even if your January-July earnings exceed $56,520, your benefits would only be reduced by $1 for every $3 over that amount.

Found this thread while researching this exact issue! I'm in a similar situation - turning my FRA in September and was offered more hours at work starting in July. So glad I learned about this rule! Sounds like I only need to be careful about July-August earnings, and then from September on I can earn as much as I want!

That's exactly right! Just watch your earnings for July and August, and from September onward you're completely free from any earnings restrictions. If your July-August income might put you over the prorated limit, you could always ask your employer to delay your hours increase until September to avoid any potential benefit reduction.

Thank you everyone for the helpful information! I'm going to accept the full-time position now that I understand the rules better. It's such a relief to know I only need to be mindful of my earnings through July, and after that, I'm free to earn without restrictions. I really appreciate all the clear explanations and personal experiences shared here!