Will SS penalize me for February earnings paid in March after retirement? Worried about FRA earnings test

You're safe. Social Security counts earnings when they're EARNED, not when they're paid. They follow the same principle as IRS - income is attributed to when you performed the work, not when you received payment. So your April earnings are April earnings, even if paid in May. Keep documentation though - your last pay stub and maybe a note from HR stating the pay period covered. Just in case there's any question later.

My husbands company pays the same way and we had no issues when he retired last summer. The SSA looks at when u earned the money not when it hit ur account. Just make sure u keep ur last paystub that shows the dates the pay was for.

While the others are correct that SSA counts earnings when earned rather than paid, I want to add one important thing: make sure your employer reports it correctly on your W-2! Some employers will report income in the year it was paid, not earned. If your W-2 shows May income and you try to tell SSA it was actually April income, you might face challenges. I'd recommend asking your payroll department specifically how your final check will be reported on your W-2, and get something in writing if possible. Also, keep track of your ongoing earnings carefully during your first year of retirement to ensure you stay under the annual limit - the penalties for exceeding it can be significant.

I went through this exact headache last year. In theory, yes, SSA counts earnings when earned not paid. In practice, it can get messy. Here's what happened to me: I retired June 30, but got paid July 15 for June work. SSA initially counted it as July earnings because that's how it appeared in their system from employer reporting. I had to file an appeal with pay stubs showing the work was performed in June. It took almost 4 months to resolve! My advice: 1. Apply for benefits but clearly document your situation upfront 2. Get a letter from your employer stating the exact work period covered by final paycheck 3. Keep all pay stubs showing dates worked 4. Monitor your earnings record on mySocialSecurity account Don't panic if there's an issue - it's fixable, just annoying.

this happend to my cousin and ss counted it for when she got PAID not when she earned it!!! the local office said one thing but then the payment people did something different. she had to fight it for MONTHS!!! so frustraeting

This is a common question with a clear answer in SSA policy, but implementation can vary. According to SSA's Program Operations Manual System (POMS) - their internal rulebook - wages count when earned, not when paid. However, in practical terms, their systems initially use employer reporting data, which often follows payment dates. I recommend taking three specific actions: 1. When you apply for benefits, explicitly tell SSA about this final paycheck situation in writing 2. Get a signed statement from your employer clearly indicating your final day worked and that the May payment represents April work 3. Request a "pre-adjudication wage verification" from your local office For the earnings test, they'll use a monthly test in your first year of retirement rather than annual. Keep documentation showing you performed no work in May.

Have you tried calling SSA to get a definitive answer? I spent THREE DAYS trying to get through on their 800 number last month for a similar question. Kept getting disconnected or told the wait time was over 2 hours. So frustrating!

wat about if u work part time after retiring? My neighbor works 2 days a week at walmart and still gets ss but shes over 67 i think

I just called my HR department and they actually weren't sure how this would be reported! They're checking with payroll. This is making me really nervous now. Should I just delay my SS application by a month to avoid this issue completely?