Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
SS Question maybe someone can explain
Old 02-05-2013, 10:04 PM   #1
Recycles dryer sheets
 
Join Date: Mar 2009
Posts: 401
SS Question maybe someone can explain

I retired one year ago the end of this month. I did not turn 65 until last August and I was assuming the wage limit would kick it at that time. Now I am finding out I may have to pay some of my money back from SS because it figured on the calender year, not when I turn 65 . The limit a 65 year old could make in 2012 was something like $14,400 without getting a penalty. I made $18,000 in February and January because of my vacation leave and sick leave I sold back so if the case is how much I make for 2012 instead of what I made after I turned 65 I will get burned a little. Does anyone here know how this works. I just thought because I was not working when I turned 65 last August and I assumed thats when the $14,400 limit would kick in? I know this year if I worked I could make almost $40,000 with paying anything back but I do not plan on working so thats out. I hope this is not confusing the way I stated it. How would SS handle this if I did make over the limit. Would I have to pay a lump sum or would they just deduct what I owe back in my monthly checks. I know with my state pension, interest from investments, SS and the sick leave and vacation hours I sold back I made almost $60,000. I do understand if we would not have to pay income tax if 1/2 of our SS payments added to my other incomes does not exceed $32,000 which is how I thought it would be until I talked to my tax lady yesterday. I sure hope I do not have to pay any of the SS back. Thanks for reading and maybe someone here can shed some light on this. old trig
__________________

__________________
oldtrig is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-05-2013, 10:36 PM   #2
Full time employment: Posting here.
 
Join Date: Jun 2006
Posts: 926
You are going to be okay on this. Have a look at this link
What You Need To Know When You Get Retirement Or Survivors Benefits
and read the two sections "A Special Monthly Rule" and
"If you worked for wages"
__________________

__________________
CW4, USA-(ret)
RN, BSN-(ret)
jclarksnakes is offline   Reply With Quote
Old 02-05-2013, 11:48 PM   #3
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 2,653
Yes, there is a special rule the year you start taking benefits. DH retired mid-year and had received a huge bonus that year and half a year's salary plus accrued vacation pay. There was no issue at all with SS.
__________________
Katsmeow is offline   Reply With Quote
Old 02-06-2013, 09:41 PM   #4
Recycles dryer sheets
 
Join Date: May 2011
Posts: 149
Both are correct, you earned this money before you retired, thus it is considered a special pmt. I'm collecting a severance check and this falls under the same category.

Best thing to do is go to your local office and have an agent take care of it for you.

Here's another link on special payments and both vacation and sick leave are listed as special pay.

http://www.socialsecurity.gov/pubs/10063.pdf
__________________
heirloom is offline   Reply With Quote
Reply

« Class of 2016 | S&P »

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 08:27 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2014, vBulletin Solutions, Inc.

Early Retirement News right to your Email!

Stay up-to-date with all the latest news to your inbox!

unsusbcribe at anytime with one click

Close [X]