Earned Income and (reduced) SS Benefits

[BillB007]

I am planning on retiring in May 2006 at age 64.

I will earn about $30K during the first four months of 2006. Reading the SS web page, it appears that SS benefits will be reduced by $1 for every $2 earned. What is not clear is if this is based on earned income AFTER I start drawing SS benefits or all earned income from 2006.

Does anyone have any experience with this?

Thanks

Bill

 

[maddythebeagle]

call the social security adm.....my guess is that it will based on calander year. I doubt many on this board would run into such a situtation since this is a retire early board, lol.

 

[Martha]

Bill, this link to a page on the social security website might help answer your question:
http://tinyurl.com/apm6d

 

[Gail]

I'm new to the board, but I can answer this. There is a special rule for the first year of retirement prior to full retirement age, and that seems to be what would apply to you, as it does to my husband, who just recently started drawing his SS. The $30,000.00 earned during the months before you retire will not count toward your allowed earnings. For your partial year, you are allowed $1000.00 per month. If you earn more than $1000.00 in any one month, you will be penalized. When your first full year starts, you are allowed $12,000.00 for the year, regardless of when you earn it.

I would not count on getting accurate information over the phone. We found that even a visit to our local SS office produced obvious inaccuracies. My husband wrote them a letter with his questions and we were contacted by someone who could actually address our concerns. When he went in to sign up, that individual was quite knowledgeable.

 

[Mr._johngalt]

I'm new to the board, but I can answer this.  There is a special rule for the first year of retirement prior to full retirement age, and that seems to be what would apply to you, as it does to my husband, who just recently started drawing his SS.  The $30,000.00 earned during the months before you retire will not count toward your allowed earnings.  For your partial year, you are allowed $1000.00 per month. If you earn more than $1000.00 in any one month, you will be penalized.  When your first full year starts, you are allowed $12,000.00 for the year, regardless of when you earn it.

I would not count on getting accurate information over the phone.  We found that even a visit to our local SS office produced obvious inaccuracies. My husband wrote them a letter with his questions and we were contacted by someone who could actually address our  concerns.  When he went in to sign up, that individual was quite knowledgeable.

I too once visited my local SS office. This served me to no good end.

JG

 

[Eagle43]

When I signed up this year, I made the mistake of going to the local SS office without an appointment. Three hour wait, minimum. Lots of young people in there, drawing or trying to draw some kind of disability (I guess). Anyway, made an appt and got right in. Don't go to the office unless you just have to.

 

[BillB007]

Thanks for the info, all. The answers appear to be what I wanted to hear. and the SSA web page substantiates that.

Later

Bill