I reach FRA in December of this year. (born 6.25.57). I've been told that I can apply for SS benefits any time this calendar year and not be penalized. In other words, can I apply now for SS and begin receiving it immediately OR do I have to wait until I actually reach FRA?

I am still working at the moment and intend to continue to work but I'm told that once I reach FRA it won't matter.

Hi. That depends on how much you'll earn this year prior to the month you reach full retirement age (FRA). If you apply for benefits now, Social Security would need to withhold $1 of your benefits for every $3 that you earn in excess of $56,520 from January 1 through November 30 of this year. So, unless you'll earn less than that amount you wouldn't be able to start collecting benefits immediately.

Furthermore, what you were apparently told about filing for benefits now without being penalized isn't accurate. If you start drawing your Social Security retirement benefits prior to the month you reach FRA your benefit rate will be reduced by 5/9ths of 1% for each month that you start collecting benefits early. And, if you're married, drawing your benefits early could cause your surviving spouse to receive a lower widow(er) benefit rate if you die before them.

Before filing for benefits, you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry