Will working through December 2024 affect my Social Security benefits starting January 2025?
Hey everyone, I'm planning my retirement and could use some advice. I've submitted my application for Social Security retirement benefits with a start date of January 1, 2025. I'm currently working part-time and plan to continue this job through December 31, 2024. Here's my concern: I haven't received any confirmation letter from SSA yet, and nobody has called me about my application. I'm starting to worry if continuing to work until the very end of December will cause problems with my benefits starting in January. Does working right up until December 31st create any issues? Should I have stopped working earlier to give some gap before benefits begin? I'm 66 and 8 months, so I know I'm past my FRA, but I'm still paranoid about messing something up. Any insights from those who've been through this?
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Axel Far
You're fine! Since you're past your Full Retirement Age (FRA), there's no earnings limit to worry about. You can work right up to December 31st and start benefits January 1st without any penalties or reductions. The earnings test only applies to people who take benefits before reaching their FRA.
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Kaitlyn Otto
•That's a relief! I wasn't 100% sure if there was some kind of processing delay I needed to account for. So the transition should be smooth even with no gap between working and starting benefits?
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Jasmine Hernandez
i did almost the same thing last year. worked till christmas eve and started SS in january. no problems at all but it took them like 6 weeks to send me the first payment. they dont pay u instantly on jan 1
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Kaitlyn Otto
•Thanks for sharing! Good to know about the payment timing. Guess I'll need to budget accordingly for that gap.
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Luis Johnson
The only concern would be if you earned so much in 2024 that it puts you in a higher tax bracket and affects how your Social Security benefits are taxed. Up to 85% of your benefits can be taxable depending on your combined income. But that's a tax issue, not a benefit eligibility issue. Your actual benefit amount won't be reduced since you're past FRA.
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Kaitlyn Otto
•I hadn't thought about the tax implications. My part-time job only pays about $22,000 annually, so I don't think it will push me into a higher bracket. But I'll double-check with my tax person.
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Ellie Kim
Have you actually confirmed they RECEIVED your application?? My sister thought hers was all set and then found out 3 months later they had NO RECORD of it!!! You better call them!!!
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Kaitlyn Otto
•Oh no, that's concerning! I applied online and got a confirmation number, but maybe I should verify they're actually processing it. I'll try calling them this week.
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Fiona Sand
I went through this exact situation last year and spent TWO WEEKS trying to reach someone at SSA to confirm my application status. Kept getting disconnected or waiting on hold for hours. Finally found a service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. Definitely worth it for peace of mind to confirm they received your application properly.
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Jasmine Hernandez
•does that really work? i always get disconnected when i call ssa its so frustrating
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Fiona Sand
•Yes, it actually works. I was skeptical too but I was desperate after being disconnected five times. They got me through to an agent who confirmed my application was being processed and gave me an estimated payment date.
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Mohammad Khaled
Since you applied for benefits to begin in January 2025, and you're past your FRA (66 and 8 months), your work activity through December 31, 2024, won't affect your benefits at all. There's no earnings limit once you reach FRA. However, there are two things to be aware of: 1. SSA processes applications up to 4 months in advance, so if you applied very early, they may still be waiting to process it closer to your benefit start date. 2. January benefits are paid in February. Social Security is paid in arrears, so your first payment will arrive in February 2025 for January benefits. I suggest checking your MySocialSecurity account online to see if there's any status update on your application. Working through December is absolutely fine in your situation.
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Kaitlyn Otto
•This is incredibly helpful, thank you! I didn't realize benefits are paid in arrears, so that helps set my expectations for February. I'll check my online account right away. I applied about 3 months ago, so maybe they're just not ready to process it yet based on what you said about the 4-month window.
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Alina Rosenthal
I think everyone here is missing the BIGGEST issue. If you're working through December 31st, that means your W-2 for 2024 won't be issued until January 2025. Social Security sometimes wants to SEE your final W-2 before finalizing benefits! At least that's what happened to my husband. They delayed his payments until they could verify his final earnings from his employer.
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Luis Johnson
•That's not accurate for someone past their Full Retirement Age. The SSA doesn't need to see the final W-2 because there's no earnings limit to enforce. They'll adjust any calculation based on those earnings during the annual earnings reconciliation, but they won't hold up benefit payments for someone who's FRA+.
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Alina Rosenthal
•Well that WASN'T our experience!!! Maybe it depends on which office handles your claim. They absolutely made my husband wait an extra month!!
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Axel Far
One thing no one has mentioned: if your 2024 earnings are higher than any of the 35 years being used to calculate your benefit, you might actually see a small INCREASE in your benefit amount. SSA does an automatic recalculation each year to account for new earnings. So working through December could potentially help you if it's a good earning year for you.
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Kaitlyn Otto
•That's interesting! My part-time work isn't high-paying, but it's possible it could replace an earlier year when I didn't work much. I hadn't considered that potential benefit.
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Jasmine Hernandez
dont forget to setup direct deposit!!! my first check got mailed and i almost missed it cause it went to my old address
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Kaitlyn Otto
•Good reminder! I did set up direct deposit when I applied, but I should probably double-check that the banking info is correct in my account.
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