Social Security: 7 guideline changes coming in 2018

[kgtest]

This article makes it easy to understand the changes.


https://www.usatoday.com/story/money/2017/10/23/7-changes-to-social-security-in-2018/106907866/

For those not yet claiming, but paying INTO SS via 6% paycheck withdrawals, AND you earn near the maximum taxable earnings cap of now $128,700 then we all owe extra $93 to the tax man next year.
Ahh the middle class helping the rich get richer. 1 in 10 hits the max each year, but to do it for 35 is even less achievable for the underdogs.

Another interesting tidbit, the $ needed to achieve a "credit" rises by $20, or $80 for the year.
3. Wealthy Americans will owe a little bit more in 2018

The average working American is likely to be thrilled to find out that wealthier Americans will be paying a bit more into Social Security next year. In 2017, workers were required to pay a 12.4% payroll tax into Social Security on earned income between $0.01 and $127,200. This $127,200 figure is what's known as the "maximum taxable earnings cap." Next year, it'll be rising to $128,700, an increase of $1,500.
There is, however, a pretty big exception that folks should be aware of. If you're employed by someone else, the company you work for usually covers half of your Social Security responsibility (6.2%). This means most Americans typically pay 6.2% of their earned income between $0.01 and the maximum taxable earnings into the Social Security program.

 

[MichaelB]

The article title is misleading. No new guidelines, just new limits. According to the article:

1. SS beneficiaries get a 2% COLA.
2. The maximum payout increases to $2788 per month.
3. The taxable income ceiling increases by $1500 to $128,700
4. The age for full retirement benefits increases by 2 months to 66 and 4 months.
5. The income threshold for working beneficiaries rises by $10 to 17040.
6. The income threshold for disability beneficiaries rises by $10 to $1180 per month.
7. The amount needed for one work credit increases by $20 to $1320, or $5280 for a full year credit.

 

[ivinsfan]

This article makes it easy to understand the changes.


https://www.usatoday.com/story/money/2017/10/23/7-changes-to-social-security-in-2018/106907866/

For those not yet claiming, but paying INTO SS via 6% paycheck withdrawals, AND you earn near the maximum taxable earnings cap of now $128,700 then we all owe extra $93 to the tax man next year.
Ahh the middle class helping the rich get richer. 1 in 10 hits the max each year, but to do it for 35 is even less achievable for the underdogs.

Another interesting tidbit, the $ needed to achieve a "credit" rises by $20, or $80 for the year.
3. Wealthy Americans will owe a little bit more in 2018

The average working American is likely to be thrilled to find out that wealthier Americans will be paying a bit more into Social Security next year. In 2017, workers were required to pay a 12.4% payroll tax into Social Security on earned income between $0.01 and $127,200. This $127,200 figure is what's known as the "maximum taxable earnings cap." Next year, it'll be rising to $128,700, an increase of $1,500.
There is, however, a pretty big exception that folks should be aware of. If you're employed by someone else, the company you work for usually covers half of your Social Security responsibility (6.2%). This means most Americans typically pay 6.2% of their earned income between $0.01 and the maximum taxable earnings into the Social Security program.

Not to quibble with you but you realize the "other" 6.2% does comes out of your pocket in the form of lower compensation, there's no such thing as a free lunch...

 

[misanman]

Re: #2 (The maximum payout increases to $2788 per month) - I assume that the $2788 is the maximum benefit at full retirement age as I currently draw substantially more than that having drawn a spousal benefit and postponing my claim.

I would like to know who is eligible for the increased payout? Is this for future claimers only or does it also apply to current SS recipients?

 

[Sand Pounder]

1 in 10 hits the max each year, but to do it for 35 is even less achievable for the underdogs.

One thing I've often wondered about is what percent of Soc Sec beneficiaries actually hit the maximum benefit by paying the maximum tax for at least 35 years. Does anybody here know? Google searches have turned up nothing....

 

[misanman]

One thing I've often wondered about is what percent of Soc Sec beneficiaries actually hit the maximum benefit by paying the maximum tax for at least 35 years.

I don't know the answer but I just checked my SS earnings record and it looks like I maxed it out for 37 consecutive years. Not sure if this entitles me to an increase next year or not.

 

[kgtest]

Not to quibble with you but you realize the "other" 6.2% does comes out of your pocket in the form of lower compensation, there's no such thing as a free lunch...

Oh completely, robbing peter to pay paul.

 

[Sand Pounder]

I don't know the answer but I just checked my SS earnings record and it looks like I maxed it out for 37 consecutive years. Not sure if this entitles me to an increase next year or not.

Awesome! It takes a lot of work over many years to accomplish that!

If I read the article correctly, you'll be getting a raise.