Will severance package count against Social Security earnings limit after taking SS at 62?

Thanks for the quick response! I was afraid of that. Do you know if there's any specific language or classification in the severance agreement that would help determine how it's counted? I wonder if I could request they structure it differently.

Oh no, that's exactly what I'm worried about! Did they reduce your benefits for the entire year or just for the months after you got the severance?

they took $1 for every $2 i went over the limit spread across the whole year. so i got less each month. you should really try getting ur money in 2024 if possible!!!

This is incredibly helpful information! I had no idea about Form SSA-131. I'm going to contact HR tomorrow to see if they'd be willing to classify the severance as a special payment for past work. Thank you so much for this specific advice.

After spending days trying to get through to SSA, I finally discovered this service called Claimyr that got me connected to a real SSA agent in about 20 minutes. It saved me so much frustration! They basically wait on hold for you and call when an agent is ready. Check out their demo at https://youtu.be/Z-BRbJw3puU or go to claimyr.com - seriously worth it when you need specific answers about your situation from an actual SSA employee.

Thanks for the tip!! I'll check it out next time i need to call them. Anything is better than listening to that awful hold music for 3 hours!!!

This is actually terrible advice. The SSA will still count the income since employers report it, and they can withhold future benefits to recoup overpayments. They can also charge penalties if they determine you intentionally concealed income. Please don't suggest people try to hide income from the SSA.

jeez it was just a joke calm down

For me, it's a combination of factors. First, I have some health concerns that run in my family, so longevity isn't guaranteed. Second, I've run the calculations and determined that my break-even point is around age 80 - meaning I'd need to live past 80 for waiting to claim later to pay off. Third, I have other retirement savings I can draw from, so I'm planning to use SS for basic expenses and preserve my other investments. But everyone's situation is different!

Thanks for sharing! Those are good points to consider. I'm still healthy at 61 but who knows what the future holds. Maybe I should rethink my strategy...

That's a really good point I hadn't considered. I'll have to look at my budget to see if I can stretch my savings for those extra months. It might be worth it to avoid dealing with benefit reductions and potential overpayments. Thanks for the suggestion!

This is exactly the kind of professional guidance I was hoping to find! Thank you so much for breaking down all the options so clearly. The monthly earnings test explanation is particularly helpful - I had read about it but didn't fully understand how much more favorable it could be compared to the annual test if the severance comes later in the year. I'm definitely going to contact HR first thing Monday morning about Form SSA-131. Your point about framing it as proper classification that benefits both parties is a great approach - I'll emphasize that aspect rather than making it sound like I'm asking for a special favor. The backup options you've outlined give me a lot more confidence that this situation is manageable. Even in a worst-case scenario where none of the preferred options work out, knowing about the monthly test and the eventual benefit recalculation at FRA makes this much less scary than I initially thought. One quick question: when you mention documenting everything in writing, should I be asking HR to confirm their decisions via email, or is it more about me keeping notes of our conversations? I want to make sure I'm creating the right kind of paper trail. Thanks again for the reassurance and actionable advice!

Great question about documentation! You'll want both - ask HR to confirm key decisions via email (like their position on Form SSA-131 or payment timing modifications), and also keep your own detailed notes with dates of all conversations. When requesting email confirmations, frame it professionally: "Just to make sure I understand correctly, could you confirm via email that..." This creates the official record you'll need if SSA has questions later. Also document any relevant policy references they cite, deadlines they mention, and names/titles of everyone involved in the decision process. If they can't accommodate your requests, having their written reasoning helps SSA understand the situation wasn't within your control. The key is making it easy for HR to help you while creating a clear trail of good faith efforts on your part. Most HR departments are used to these types of documentation requests, especially for retirement-related matters. You're taking exactly the right approach - being proactive now will pay off regardless of which path you end up taking!

For documentation, I'd recommend both approaches. Send follow-up emails to HR after verbal conversations summarizing what was discussed and any agreements reached - something like "Thanks for our conversation today. Just to confirm my understanding: you mentioned you'll research the Form SSA-131 option and get back to me by [date]. Please let me know if I've misunderstood anything." This creates a written record while giving them a chance to clarify. Also keep your own detailed notes with dates, names, and specifics of each conversation. If you end up needing to work with SSA later, having timestamps and exact details of your employer's decision-making process can be very helpful. The key is creating a clear timeline that shows you acted in good faith to properly classify the severance. One more tip: when you talk to HR about Form SSA-131, bring a printed copy of the form and the relevant POMS section. Many HR departments have never dealt with this form before, so providing the actual documents makes their job easier and shows you've done your homework. Good luck with that Monday morning conversation!

For documentation, definitely get written confirmation from HR via email. After each conversation, send a follow-up email summarizing what was discussed and any decisions made - something like "Thanks for our conversation today. Just to confirm, we discussed X, Y, and Z, and you mentioned that [specific outcome]. Please let me know if I misunderstood anything." This creates an official record and gives them a chance to correct any misunderstandings. Also keep your own detailed notes with dates and names of who you spoke with. If they agree to complete Form SSA-131 or modify payment timing, ask for email confirmation of those specific commitments with expected timelines. This documentation becomes crucial if you need to reference these conversations with SSA later. The key is being professional about it - frame it as "wanting to ensure we're both on the same page" rather than "I need this for legal protection." Most HR departments are used to confirming important benefits discussions in writing, so it shouldn't seem unusual. You're taking exactly the right approach by acting quickly and systematically. Good luck with your Monday conversation!

For documentation, I recommend both approaches. After each conversation with HR, send them a follow-up email summarizing what was discussed and any agreements or next steps - something like "Hi [HR Contact], thanks for our conversation today about my severance classification. Just to confirm my understanding: [summarize key points]. Please let me know if I missed anything or if you need additional information from me." This creates a written record while giving them a chance to clarify or correct anything. Also keep your own detailed notes with dates, times, and who you spoke with. If they agree to complete Form SSA-131 or modify payment timing, get that confirmation in writing before you file for SS benefits. One more tip: if HR seems hesitant about Form SSA-131, you can direct them to SSA's employer resources at ssa.gov/employer - there's specific guidance there about special wage payments that might help them understand this is a standard process, not an unusual request. You're taking exactly the right approach by being proactive about this. Most people don't realize they have options until after they're already dealing with benefit reductions. Good luck with your HR conversation Monday!

For documentation, definitely get written confirmation via email whenever possible. After phone conversations with HR, send a follow-up email summarizing what was discussed and asking them to confirm key points - something like "Hi [HR person], thanks for our call today about my severance classification. Just to confirm our discussion: you mentioned you'll look into Form SSA-131 for special payment classification and get back to me by [date]. Please let me know if I misunderstood anything." This creates a clear paper trail that shows you're acting in good faith and gives them a chance to correct any misunderstandings. Also keep copies of any severance agreements, employment contracts, and Form SSA-131 if they complete it. Having everything documented will be invaluable if you need to work with SSA later on any earnings test issues.

For documentation, I'd recommend both approaches. Send follow-up emails after verbal conversations summarizing what was discussed and asking for confirmation - something like "Hi [HR person], thanks for our conversation today about my severance classification. Just to confirm my understanding: you mentioned you'll look into Form SSA-131 and get back to me by [date]. Please let me know if I misunderstood anything." This creates a written record while giving them an easy way to clarify or correct. Also keep your own detailed notes with dates, times, and who you spoke with. If HR ultimately can't accommodate the Form SSA-131 classification, having documented proof that you made good faith efforts to resolve it properly can be helpful if you need to appeal any SSA decisions later. One more tip: when you call SSA (and definitely do call them once you know more from HR), ask specifically about the monthly earnings test timing and get their guidance in writing via their online portal if possible. Having SSA's written guidance on your specific situation can prevent confusion later. You're taking exactly the right approach - being proactive and exploring all options early gives you the best chance for a favorable outcome!

For documentation, I'd recommend both approaches. Send follow-up emails to HR after each conversation summarizing what was discussed and any agreements reached - something like "Thanks for our conversation today about my severance classification. To confirm my understanding, you mentioned that [specific details]. Please let me know if I misunderstood anything." This creates a written record and gives them a chance to clarify or correct. Also keep your own detailed notes with dates, times, and who you spoke with. If HR agrees to pursue Form SSA-131 or modify payment timing, ask them to send you a brief email confirming the decision once it's final. The key is being professional about it - frame it as "making sure we're both on the same page" rather than "I need this for legal protection." Most HR departments are used to confirming important benefit decisions in writing anyway, so it shouldn't seem unusual. Good luck with your Monday conversation - you're well prepared now with specific requests and solid reasoning for each option!

For documentation, definitely get everything in writing via email. When you have your initial conversation with HR, follow up with an email summarizing what was discussed and asking them to confirm the details. Something like "Hi [HR contact], thank you for our conversation today about my severance classification. Just to confirm my understanding: [summarize key points]. Please let me know if I've missed anything or if you need additional information to move forward with [specific request]." This approach creates a clear paper trail while being professional and collaborative. If they make any commitments about Form SSA-131 or payment timing modifications, having those in writing protects both of you and helps avoid any confusion later. Also keep copies of your original employment agreement, the final severance agreement, and any correspondence with SSA. The key is being proactive but not pushy - you want HR to see you as someone who's trying to handle things properly, not someone who's trying to game the system. Good luck with your Monday conversation!

For documentation, I'd recommend both approaches. During your conversations with HR, take detailed notes with dates, names of people you spoke with, and key points discussed. Then follow up each conversation with an email summarizing what was discussed and any agreements or next steps - something like "Hi [HR Rep], thanks for our conversation today about my severance classification. Just to confirm my understanding: you mentioned you'll review Form SSA-131 requirements and get back to me by [date] about whether the payment can be classified as special wages for prior years' work." This creates an email trail while giving them a chance to correct any misunderstandings. Also ask them to email you copies of any forms they complete (like SSA-131) and keep copies of your original employment agreement and final severance agreement. If they do modify the payment structure or timing, get that in writing too. The key is being professional and collaborative - you're not trying to "catch" them in anything, you're just ensuring everyone's on the same page about important financial decisions. Most HR departments appreciate this approach since it protects them from future confusion as well.

Great question about documentation! You want both - email confirmations from HR about their decisions AND your own detailed notes from phone/in-person conversations. For HR communications, always follow up verbal discussions with an email saying something like "Just to confirm our conversation today, my understanding is that you'll review the Form SSA-131 option and get back to me by [date] about whether the severance can be classified as a special payment for prior years' work." This creates a written record and gives them a chance to correct any misunderstandings. Keep your own notes with dates, names, and key points discussed. If they say they can't do something, ask them to explain why in writing - sometimes there's wiggle room they haven't considered, or you can address their specific concerns. Also, when you contact SSA (whether directly or through a service like Claimyr that was mentioned earlier), document those conversations too. Having a complete paper trail makes everything smoother if you need to appeal any decisions or clarify your situation later. You're taking all the right steps - being proactive about this now puts you in a much stronger position than if you'd waited until after starting benefits!

For documentation, definitely get written confirmation via email whenever possible. After your conversation with HR, send a follow-up email summarizing what was discussed and asking them to confirm the details - something like "Just to confirm our conversation, you mentioned that [specific details about Form SSA-131 or payment timing options]. Please let me know if I understood correctly." This creates an official record that protects you if there are any misunderstandings later. Also keep your own detailed notes with dates, times, and names of who you spoke with. If HR says they can't do something, ask them to put that in writing too - SSA sometimes wants to see evidence that you attempted to get proper classification but the employer declined. The key is being proactive about creating a paper trail that shows you took all reasonable steps to properly classify the income. It demonstrates good faith effort on your part, which can be helpful if you need to appeal any SSA decisions later. You've got this! With 18 years of service history, you have solid grounds for the special payment argument. Most HR departments just need the right guidance on how to handle it properly.

For documentation, I recommend both approaches. During conversations with HR, take detailed notes including dates, who you spoke with, and what was discussed. Then follow up each conversation with an email summarizing the key points and asking them to confirm or correct anything you might have missed. Something like "Hi [Name], thanks for our conversation today about my severance classification. Just to confirm my understanding: [summarize key points]. Please let me know if I've missed anything or if you need additional information from me." This creates a written record while giving HR a chance to clarify or correct anything, which they usually appreciate. If they agree to pursue Form SSA-131 or modify payment timing, ask for that confirmation in writing too - even a simple email saying "We've agreed to explore the special payment classification option" helps establish their intent to work with you. Also save any documents they reference, like your original employment agreement, severance calculation worksheets, or company policies they mention. The more documentation you have about how the severance relates to your years of service rather than current work, the stronger your case becomes with both your employer and SSA if needed later.

For documentation, I'd recommend both approaches. During your conversations with HR, take detailed notes including dates, who you spoke with, and what was discussed. Then follow up each conversation with an email summarizing the key points and asking them to confirm or clarify anything important - something like "Hi [HR contact], thanks for our conversation today about my severance classification. Just to confirm my understanding: you mentioned that you'll look into Form SSA-131 and get back to me by [date]. Please let me know if I missed anything or if you need additional information from me." This creates a paper trail without being confrontational, and gives them a chance to correct any misunderstandings right away. If they do agree to classify your severance as a special payment or modify the timing, definitely get that commitment in writing before you file for Social Security. You're taking all the right steps - being proactive about this now puts you in a much stronger position than waiting until after you've already filed for benefits!

For documentation, definitely get everything in email form from HR - don't rely on notes from phone calls or in-person meetings. When you make your initial request, send it via email and ask them to respond in writing with their decision and reasoning. If they prefer to discuss by phone first, that's fine, but follow up immediately with an email summarizing what was discussed and asking them to confirm the details. Specifically request: 1) Written confirmation of how they're classifying the severance payment, 2) If they complete Form SSA-131, get a copy for your records, 3) Any documentation showing the work period the severance relates to vs. payment date, 4) If they modify payment timing, get the new schedule in writing. This email trail becomes crucial if you later need to work with SSA on any benefit adjustments. SSA agents appreciate having clear documentation rather than "he said/she said" situations. Plus, having everything in writing often makes HR departments more careful and thorough in their responses, which works in your favor. You're taking exactly the right approach - being proactive now will save you months of headaches later!

For documentation, definitely get email confirmations from HR whenever possible. After any phone conversations or meetings, send a follow-up email summarizing what was discussed and asking them to confirm your understanding is correct. Something like "Hi [HR contact], just wanted to confirm our discussion about the severance payment classification. My understanding is that [summarize key points]. Please let me know if I've misunderstood anything." This creates a clear paper trail without being pushy about it. Also keep copies of your original employment contract, any severance agreement drafts, and the final severance agreement. If HR agrees to complete Form SSA-131, make sure you get a copy of the completed form for your records before they submit it to SSA. You're taking all the right steps - starting these conversations early gives you the best chance for a favorable outcome. The fact that your severance is based on long-term service rather than recent work performance really strengthens your case for the special payment classification. Good luck with HR on Monday!

For documentation, I always recommend getting HR's responses in writing via email whenever possible. After any phone or in-person conversation about your severance classification or timing, send a follow-up email summarizing what was discussed and asking them to confirm the details. Something like: "Hi [HR contact], thank you for our conversation today about my severance package. Just to confirm my understanding: [summarize key points]. Could you please confirm these details and let me know the next steps?" This creates an official record that protects you if there are any misunderstandings later, and it also shows SSA that you made good-faith efforts to properly classify the payments. Keep copies of your original employment agreement, the final severance agreement, and all email exchanges - SSA may request these if you pursue the Form SSA-131 route.