Ask Larry

Can I Earn More Than $1630 Per Month When I Turn 65?

I did yearly retirement at 63 I'm going to be 65 can I earn more then the 1630 a month when I turn 65

Hi. You're Social Security benefits can be subject to full or partial withholding due to Social Security's earnings test until you reach your full retirement age (FRA), and if you were born in 1957 then you won't reach your FRA until age 66 & 6 months. The monthly earnings test limit of $1630 to which you refer only applies in the initial year that a person starts collecting benefits, so it would no longer apply to you if you've been drawing benefits since age 63. Instead, you'd be subject to the annual earnings test, which would require withholding $1 of your benefits for each $2 that you earn in excess of $19,560 during the calendar year of 2022 (https://www.ssa.gov/benefits/retirement/planner/whileworking.html).

A higher exempt amount of earnings applies in the calendar year during which a person reaches their FRA. For example, people who reach FRA in 2022 can earn up to $51,960 in the months prior to the month they reach FRA, and an unlimited amount thereafter. But, the higher exempt amount won't apply to you until the year you reach your FRA.

Best, Jerry

Category: 
Posted: 
Aug 3 2022 - 1:29pm
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