Social Security income limits at 62 - are stock trading profits and CD interest counted as earned income?

I think investment income doesnt count for SS limits but not 100% sure

Good news! Neither your stock trading profits nor your CD interest count as "earned income" for Social Security purposes. The earnings limit only applies to wages from a job or net earnings from self-employment. Investment income like stock profits, dividends, interest from CDs or savings accounts, pension payments, annuities, and capital gains are all considered "unearned income" and don't count toward the annual earnings limit. It doesn't matter if you leave the money in your investment account or transfer it to your bank - it's still not counted as earned income either way. For 2025, the earnings limit for someone your age will be approximately $21,250/year (it's $21,240 for 2024 with a small COLA increase expected). You can earn up to that amount from an actual job without any reduction in benefits.

I went through this EXACT situation last year!!! I was so worried about my investment income counting against me when I took early retirement at 62. Called SSA like 5 times and kept getting different answers from different agents which drove me CRAZY!!!! Finally got connected to someone who actually knew what they were talking about. Here's the deal: stock profits, dividends, interest payments - NONE of it counts toward the earnings test. Only WORK income counts - like if someone is paying you a salary or you're running a business. Keeping the money in your trading account vs. transferring it makes absolutely no difference. It's about the SOURCE of the money, not where you keep it!!! BTW you should look into whether you might qualify for survivor benefits from your late husband instead of your own retirement - sometimes that pays more!

My brother tried to call SS about a similar question last month and spent 3 days trying to get through to a real person. He eventually gave up and just made a wild guess about his benefits lol. The system is so frustrating.

One thing no one has mentioned yet - while your investment income doesn't count against the earnings limit, it MIGHT affect how much of your Social Security is taxable. Up to 85% of your SS benefits can be taxable depending on your combined income (which does include investment income). The thresholds for taxation are pretty low too - if your combined income is over $25,000 for a single filer, a portion of your benefits becomes taxable. Over $34,000 and up to 85% becomes taxable. "Combined income" = Adjusted Gross Income + Nontaxable Interest + 1/2 of Social Security Benefits So keep that in mind for tax planning purposes. The earnings limit and taxation of benefits are two completely different issues.

My mom got so confused about all this she just stopped working completely at 62. Probably left money on the table tbh

I want to thank everyone for all the helpful responses! I understand now that my stock trading profits and CD interest won't count against the earnings limit (unless I somehow became a professional trader, which I'm definitely not with my tiny account). I'm going to look into the tax implications and also check if survivor benefits might be higher than my own retirement benefits. This community has been so helpful - I would have struggled to get clear answers otherwise!

Just wanted to add another perspective as someone who went through this recently. I'm 63 and took early retirement last year, and I was also confused about what counts as "earned income" for the earnings test. The key thing to remember is that Social Security distinguishes between "earned" and "unearned" income. Your stock trading profits and CD interest are considered unearned income (investment income), so they won't affect your Social Security benefits under the earnings test. The earnings test only applies to wages from employment or net earnings from self-employment. However, I'd echo what others have said about checking into survivor benefits. When I applied, the SSA representative calculated both my own retirement benefit and my potential survivor benefit from my deceased spouse. The survivor benefit ended up being about $200/month higher, which makes a real difference over time. Also, definitely plan ahead for the tax implications that Vanessa mentioned. While your investment income won't reduce your SS benefits, it will count toward determining how much of your Social Security is subject to federal income tax. With your CD interest and potential trading profits, you'll want to keep track of your total income to avoid surprises at tax time. Good luck with your retirement planning!