Will inheritance from selling parent's house affect my Social Security retirement benefits at age 62?

Inheritance money has absolutely no impact on your Social Security retirement benefits. SS retirement benefits are only affected by earned income (wages or self-employment), not by unearned income like inheritances, interest, dividends, or other capital gains. You're right to be cautious about the earnings limit since you're collecting before your Full Retirement Age, but the inheritance isn't considered earnings for Social Security purposes. You don't need to report the inheritance to SSA at all. However, if you're receiving SSI (Supplemental Security Income) rather than regular retirement benefits, that's different - inheritances would affect SSI because it's a needs-based program. But based on your post, you're collecting regular retirement benefits, so no worries.

I went through the exact same worry last year when my father passed. I was 63 and already on SS retirement. Got about $95k from selling his house, and it didn't affect my Social Security benefits AT ALL. The SSA doesn't care about inheritance money - they only care about EARNED income if you're under full retirement age. HOWEVER - keep in mind that if you decide to invest that inheritance money, any interest or dividends you earn won't count against your Social Security earnings limit either! Those are considered unearned income too. Just don't go back to work extra hours thinking you have more wiggle room, because wages still count against your limit.

When my mother-in-law died in 2023, we sold her house and split it between 4 kids. My husband got $87,000 and he was already getting SS disability. We called SSA to report it because we were TERRIFIED they would say he was overpaid and demand money back later!!! But they said inheritance is NOT counted for regular Social Security! They did warn us though - if he was getting SSI (the needs-based disability) instead of SSDI (regular disability), it WOULD affect benefits because SSI has asset limits. Just make SURE you're getting regular retirement Social Security and not the SSI supplement. Regular SS has NO asset limits!!!

sorry about your mom's health... i'm in a simillar boat at 64 with my mothers house coming to me and my sister soon. i've been collecting SS since 62 also and was worried about the same thing!! From what everyone else already told me, inheirtance doesn't count toward earned income at all. BUT just be careful because if you already have a part-time job like me, any extra work you pick up WILL still count against your earnings limit. I messed up last summer and earned too much and had to pay back some of my benefits which was a NIGHTMARE!!!!

Since you mentioned you're specifically concerned about staying under the earnings limit while working part-time, I want to clarify something important: 1. The 2025 earnings limit for people under FRA is $21,240 2. For every $2 you earn above that limit, SSA withholds $1 in benefits But here's the key: Inheritance money WILL NOT count toward this limit. The earnings limit ONLY applies to wages and self-employment income. However, if you're trying to reach the Social Security office to confirm this or discuss your specific situation, good luck... I spent 3 weeks trying to get through about my own retirement questions last month. I finally used a service called Claimyr (claimyr.com) that got me connected to an agent in under 20 minutes. They have a video demo at https://youtu.be/Z-BRbJw3puU showing how it works. Saved me hours of frustration when I needed to confirm my own earnings limit situation.

i think the other comments are right but becareful some government benefits DO count inheritance as income or assets. medicaid has a 5 year lookback period and they can penalize you for gifts or transfers. also some housing assistance programs count assets. just depends what benefits your getting exactly so double check everything!!!

The previous responses are correct about inheritance not affecting regular Social Security retirement benefits. I just wanted to add that you should still be aware of potential tax implications. While the inheritance itself isn't typically subject to federal income tax, if you invest that money and earn interest/dividends, those earnings are taxable. Also, depending on your overall income, receiving additional investment income might push more of your Social Security benefits into the taxable range. Currently, if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds certain thresholds, up to 85% of your benefits may become taxable. This doesn't reduce your Social Security benefit amount, but it could increase your tax bill. Might be worth consulting with a tax professional about managing this new income stream effectively.

My condolences about your mom. everybody already answered your main question but just wanted to say make sure you have all her paperwork in order BEFORE she passes. My mom died last year and it was a nightmare dealing with the title company because we couldnt find some important papers. If the house needs to go through probate that can take forever too. Start organizing now while she's still here to answer questions. Sorry if this is off topic but thought it might help

To summarize what everyone has correctly stated: 1. Inheritance money has NO impact on Social Security retirement benefits 2. Only earned income (wages, self-employment) counts toward the earnings limit 3. Unearned income (inheritance, interest, dividends, capital gains, rental income, pensions) does NOT count toward the earnings limit 4. This would be different if you were receiving SSI (Supplemental Security Income), which has asset limits 5. While the inheritance won't affect your Social Security benefit amount, it could potentially affect the taxation of your benefits depending on your overall income You can proceed with receiving your inheritance without any concerns about your Social Security retirement benefits being reduced.

I'm so sorry to hear about your mother's declining health. What a difficult time for you and your family. The good news is that everyone here has given you accurate information - your inheritance will absolutely NOT affect your Social Security retirement benefits in any way. I wanted to add one practical point that might help ease your mind: you don't even need to notify SSA about receiving the inheritance. It's completely separate from your Social Security benefits. Since you mentioned being very careful about your part-time work hours, you're clearly on top of managing the earnings limit. Just remember that limit only applies until you reach your Full Retirement Age (which will be 67 for you if you were born in 1962 or later). Once you hit FRA, you can earn as much as you want without any reduction in benefits. The inheritance might actually give you some financial breathing room - maybe you won't need to work as many hours or can afford to be more selective about work opportunities as you get closer to your FRA. Either way, you can receive that inheritance with complete peace of mind regarding your Social Security benefits.

I'm sorry to hear about your mother's condition. This is such a stressful time, and worrying about your benefits on top of everything else must be overwhelming. Everyone here has given you excellent advice - your inheritance absolutely will not affect your Social Security retirement benefits. I just wanted to add one thing that might be helpful: when you do receive the inheritance, consider keeping detailed records of the transaction (closing documents, bank deposits, etc.) just for your own peace of mind. While you don't need to report it to SSA, having that paper trail can be useful for your own financial records. Also, since you mentioned being careful about your part-time earnings, you might want to track your year-to-date wages regularly. I use a simple spreadsheet to monitor my earnings against the annual limit - it helps me avoid any surprises at year-end. The inheritance won't count toward that limit, but it's still good practice to stay on top of your actual work income. Take care of yourself during this difficult time, and rest assured that this inheritance is one less thing you need to worry about affecting your benefits.

I'm truly sorry about your mother's health situation - that must be incredibly difficult to deal with alongside worrying about your benefits. The great news is that everyone here is absolutely correct: inheritance money will NOT affect your Social Security retirement benefits at all. I went through a similar situation when my grandmother passed and left me part of her estate. I was also collecting early retirement benefits and was terrified it would mess up my payments, but SSA confirmed that inheritance is completely separate from their earnings calculations. One thing that really helped me was creating a simple folder to keep all my Social Security-related documents organized - benefit statements, earnings records, and later the inheritance paperwork. It made me feel more in control during a really stressful time. Since you're being so careful about your part-time work hours, you clearly understand the system well. The inheritance will actually give you more financial security without any impact on your monthly benefits. You can breathe easy on this one! Wishing you and your family strength during this difficult time.

I'm so sorry to hear about your mother's declining health - that's such a difficult situation to navigate emotionally while also trying to manage practical concerns about your benefits. As a newcomer to this community, I've been reading through all the responses and I'm impressed by how knowledgeable and supportive everyone has been. The consensus is absolutely clear: your inheritance will have zero impact on your Social Security retirement benefits. It's completely separate from the earnings limit you're carefully tracking with your part-time job. What really stands out to me is how organized and thoughtful you're being about managing your benefits. The fact that you're already monitoring your work hours to stay under the $21,240 earnings limit shows you understand the system well. The inheritance is essentially "found money" that won't complicate any of that careful planning. I hope this thread has given you the peace of mind you were looking for during an already stressful time. It's one less thing to worry about as you focus on what's most important - spending time with your mother and supporting your family through this transition.

I'm so sorry to hear about your mother's health situation - my thoughts are with you and your family during this difficult time. As a newcomer to this community, I've been reading through all the responses here and I'm amazed by how helpful and knowledgeable everyone has been. The consensus is absolutely clear: your inheritance will NOT affect your Social Security retirement benefits in any way. What really strikes me is how responsibly you're managing your benefits already. The fact that you're carefully tracking your part-time hours at the garden center to stay under the earnings limit shows you have a solid understanding of the system. That $125,000 inheritance is essentially a financial blessing that won't complicate any of your careful planning. I'm also facing the possibility of inheriting property from aging parents in the future, so this entire discussion has been incredibly educational for me. It's reassuring to know that inheritance money is completely separate from Social Security's earnings calculations. You can receive that inheritance with complete peace of mind knowing your monthly benefits will continue unchanged. Wishing you strength during this challenging time with your mother.