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reduced benefits payment schedule
Old 10-16-2008, 09:48 AM   #1
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reduced benefits payment schedule

Just signed up and want to know how to post a question to Early Retirement forum. Access denied when I try new post. First time joining any type of forum at all and if it becomes difficult I'm out of here. All I want to know is how the reduced benefits are paid (I'll earn $2400 over the limit for the year). Will they reduce each month's payment by 1/12 of the total reduction, ie, by $100 per month? Will they postpone payments until the reduction has been met? Will they cease payments towards the end of the year when entitled total has been reached?

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Old 10-16-2008, 11:04 AM   #2
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If you are talking about Social Security payments: If you retired in 2008, and began collecting in 2008, there will be no deduction unless you earned more than their monthly limit after retiring; that method is only for the year you retire because for that first year they figure it by month rather than year.

If you retired in a prior year, it may be best to contact Social Security for details.

Welcome to the forum, Curious.

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Old 10-16-2008, 11:15 AM   #3
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To the original poster: Your question isn't exactly clear.

If you are at full Social Security retirement age and are receiving benefits and are still working then for every three dollars you earn above the limit ($13560 in 2008 ) you'll forfeit $1 in social security payments. This is only true for the year you reach full SS retirement age.

If you are below full retirement age then you'll forfeit then for every two dollars you earn above the limit ($13560 in 2008 ) you'll forfeit $1 in social security payments.

When you are older thean full SS retirement age then there is no earnings penalty.


Here is the text from the SS website concerning the special rules in the year in which you retire:

Special rule for the first year you retire

Sometimes people who retire in mid-year already have earned more than the yearly earnings limit. That is why there is a special rule that applies to earnings for one year, usually the first year of retirement. Under this rule, you can get a full Social Security check for any whole month you are retired, regardless of your yearly earnings.
In 2008, a person under full retirement age for the entire year is considered retired if monthly earnings are $1,130 or less. For example, John Smith retires at age 62 on October 30, 2008. He will make $45,000 through October.
He takes a part-time job beginning in November earning $500 per month. Although his earnings for the year substantially exceed the 2008 annual limit ($13,560), he will receive a Social Security payment for November and December. This is because his earnings in those months are $1,130 or less, the monthly limit for people younger than full retirement age. If Mr. Smith earns more than $1,130 in either of those months (November or December), he will not receive a benefit for that month. Beginning in 2009, only the yearly limits will apply to him.
Also, if you are self-employed, we consider how much work you do in your business to determine whether you are retired. One way is by looking at the amount of time that you spend working. In general, if you work more than 45 hours a month in self-employment, you are not retired; if you work less than 15 hours a month, you are retired. If you work between 15 and 45 hours a month, you will not be consiconsidered retired if it is in a job that requires a lot of skill or you are managing a sizable business.
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Old 10-16-2008, 01:26 PM   #4
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Hey curious,

Welcome here.

I too am confused as to what you are refering to. Could you please restate your question and add some more information so that we can address your concerns?
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Old 10-16-2008, 01:42 PM   #5
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Originally Posted by curious View Post
Just signed up and want to know how to post a question to Early Retirement forum. Access denied when I try new post.

re: access denied, do you have popups blocked maybe?
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