Quote:
Originally Posted by ShokWaveRider
Thanks, unfortunately it does not appear to say how the formula works. I assume (You know what that means) the downloadable calculator is accurate as long as one fills in the correct numbers.
I think I found some info. The WEP Chart here seems to dictate how much the Max WEP is for a Given amount of contribution years.
https://www.ssa.gov/planners/retire/wep-chart.html
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The basic formula is that you have a maximum amount of WEP reduction based on your year of eligibility, typically when you turn 62. This amount goes up with time, presumably with the COLA % or something.
BUT... the important part to understand is that if you have 20 years of substantial earnings (which also vary with time), you have the full reduction. After that, each year of additional substantial earnings you reduce the amount you pay by 10% of the reduction. IOW
Years of substantial earnings/% of WEP reduction
0/100
1/100
...
20/100
21/90
22/80
23/70
...
28/20
29/10
30/0
Hope that makes sense...
Edit: Should have added that there is a maximum amount of WEP reduction as well, the above assumes you have a decent amount of earnings in SS...