My wife and I plan to start drawing Social Security Benefits. She is FRA (66.4) and entitled only to spousal benefits. I will only be 65. If I earn more than the annual limit (~19k) next year, will her benefits be affected? I understand the amount that mine will be reduced.

Hi. Yes. If you earn more than the earnings test exempt amount then Social Security will need to withhold at least part of both your benefits and your wife's spousal benefits. The basic rule is that for each $2 that a worker earns in excess of the exempt amount, $1 of the benefits payable on that worker's record must be withheld. That includes withholding auxiliary benefits such as spousal benefits, even if the spouse has reached their full retirement age (FRA). However, in the calendar year in which the worker reaches FRA, $1 is withheld for each $3 of excess earnings and only earnings in months prior to the month that the worker reaches FRA are counted (https://www.ssa.gov/benefits/retirement/planner/whileworking.html).

You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing benefits for you and your wife.

Best, Jerry