If You Take Early Social Security And Continue Working Does The Penalty Stop When You Reach Full Retirement Age?

Feb 10 2020 - 10:25am

If you take early social security and work and continue to work past age 66 years and 2 months, do you stop getting the penalty?


If by 'penalty' you mean having your benefits withheld because of your earnings, then yes that would stop effective with the month you reach full retirement age (FRA). There is no limit on the amount that you can earn and still draw Social Security benefits once you reach FRA.

However, if by 'penalty' you mean the reduction in your benefit rate that would be assessed if you start drawing prior to FRA, that benefit reduction is permanent for any months that you are paid benefits prior to FRA. The reduction is removed effective at FRA, though, for any months that your benefit payments are withheld prior to FRA because of your earnings.

Best, Jerry