Will my social security benefits be reduced if I earn too much?
While working in retirement is becoming more common, be aware that earnings above certain limits will reduce future benefits until you reach full retirement age. You need to know if you will receive reduced social security benefits due to earnings in retirement.
In 2016, if you work and start receiving benefits before full retirement age, $1 in benefits will be deducted for each $2 in earnings over $15,720.
In the year you reach full retirement age, your benefits will be reduced $1 for every $3 in earnings, until the month you reach full retirement age, above $41,880.
Once you reach full retirement age your social security benefits will not be reduced no matter how much you earn. So make sure that you know how much you’re making and if it will affect the amount of money that you will get before reaching full retirement age.
Calculating your reduced social security benefits can be confusing for some. Please contact us or download our free eBook The Nuts & Bolts of Social Security in 7 Easy Tips.
This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this web site is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.