SS Maximum contribution

[Al18]

Just curious how many forum members have hit the SS maximum earnings limit during your working years. For 2015 and 2016, the maximum earnings limit was $118,500 and for 2017 it's $127,200 according to https://www.ssa.gov/oact/cola/cbb.html

While my wife (public school teacher, retired) and I (manufacturing engineer), living in the North East, have been paid well, neither of us has ever hit the SS maximum earnings limit.

 

[aja8888]

Just curious how many forum members have hit the SS maximum earnings limit during your working years. For 2015 and 2016, the maximum earnings limit was $118,500 and for 2017 it's $127,200 according to https://www.ssa.gov/oact/cola/cbb.html

While my wife (public school teacher, retired) and I (manufacturing engineer), living in the North East, have been paid well, neither of us has ever hit the SS maximum earnings limit.

I hit it a few times (per work year), but early in my working life, I had entry level or low scale paid jobs that didn't reach the max to hit it.

 

[W2R]

Just curious how many forum members have hit the SS maximum earnings limit during your working years. For 2015 and 2016, the maximum earnings limit was $118,500 and for 2017 it's $127,200 according to https://www.ssa.gov/oact/cola/cbb.html

While my wife (public school teacher, retired) and I (manufacturing engineer), living in the North East, have been paid well, neither of us has ever hit the SS maximum earnings limit.

Nope, not me. I never earned more than 5 figures so I never came close to the SS maximum earnings limit.

Not only did I not earn enough, but sometimes my jobs didn't even participate in social security or gave me the option of not participating (so I didn't). Overall, my SS is pretty low. I have no complaints since that was my choice and responsibility, nobody else's, but I wish I had realized earlier that SS wasn't going to fail anytime soon.

 

[jazz4cash]

I hit it a few times many years ago. I think I was rather unaware of the limit until I got a check late in the year with no SS deduction. It was like a holiday bonus when it happened. In later years, it was discouraging to see the limit rise faster than my compensation, like the huge jump noted by OP.

 

[RockyMtn]

30 straight years. First was in 1985 when the max was $39,500. Last was when I cashed in the last of my vested stock options in 2014 and the limit was $117,000.

 

[COcheesehead]

Many, many years. I always wait for that moment because it makes about a $400/check difference which goes right into savings.

 

[PandaBear]

I don't pay SS taxes but would have only hit the limit two years ago. Dh has been there for too many years to count. But we're in Silicon Valley!

 

[braumeister]

Five times, but just barely. Back in the 70s.

 

[cathy63]

In 37 years of working, I have 21 years where I maxed out SS taxes and 2 years where I had $0 contributions.

 

[tps7742]

My first four years of full time employment I didn't max out ss but the remaining of my career I did max it out (retiring just prior to 54).

 

[Rosie]

I did, for over a decade. I was very surprised when I first saw that bump up in my take-home pay. I put it into savings, along with the other large chunk of our salaries, which helped get us where we are today (the overall savings I mean, not just the extra bit due to hitting the SS max).

 

[RobbieB]

I was never even close.

 

[gerntz]

Usually, but not by much, so got little SS tax-free income.

 

[Texas Proud]

Got me interested in looking....

I have 32 years of 'good' earnings, that is after graduating... 9 of those years I maxed out, but you have to throw 2 of those out since a good part of my 'salary' was company paid apt and such on assignment... they were included in my salary, but not really money to me... so only 7 times for me...


I also noticed that I had 10 years of earnings prior to graduating and getting my first 'real' job... 3 were just working a day or two and making almost nothing... kinda surprised they were even reported...

 

[Just_Steve]

5 times 1995-1999 then twice again 2012 & 2013.

 

[ABQ2015]

I've maxed out since 1994 or 23 times but then I'm not an actual early retiree since I'm retiring at age 62 so had more work years. Usually I treat the extra money as a holiday bonus and spend it on Christmas presents and travel to see family. This year I will be retiring so will not make it to the maximum contribution.

 

[Walt34]

Just once that I recall - my last paycheck in December was significantly higher. I think it was the late '70's.

 

[NW-Bound]

Having looked up my earning records to enter into SS calculator (anypia.exe), I saw that I consistently maxed out starting at 5 years after starting full-time work. Once, I left megacorp to be on my own at age 40, eventually working part-time, there were a few years that I missed.

Overall, I maxed out 19 out of 33 years of professional work (meaning not counting odd jobs while in school), and with several years coming close.

 

[euro]

often - maybe 80%+ of the time

 

[NW-Bound]

I hit it a few times many years ago. I think I was rather unaware of the limit until I got a check late in the year with no SS deduction. It was like a holiday bonus when it happened. In later years, it was discouraging to see the limit rise faster than my compensation, like the huge jump noted by OP.

The limit did rise faster than inflation. My records show that in the year 1980 where I started my "real job", the limit was $25,900. With cumulative inflation of 3.1X till now, that is equivalent to $80,290 in today's dollar.

My earning that year was $25,049. They treated me well.

 

[ProspectiveBum]

I've hit the max 13 times out of my 28 working years (which include the after-school job I had in high-school at 16). Another 5 years I've come within a few thousand dollars of the max.

I built a spreadsheet to model my expected SS income, and it's pretty depressing how little a full year of max earnings add to the monthly payment. Once you get past that 2nd bend point, the gains are pretty small.

 

[NW-Bound]

I've hit the max 13 times out of my 28 working years (which include the after-school job I had in high-school at 16). Another 5 years I've come within a few thousand dollars of the max.

I built a spreadsheet to model my expected SS income, and it's pretty depressing how little a full year of max earnings add to the monthly payment. Once you get past that 2nd bend point, the gains are pretty small.

And it is even more depressing if you figure out how much that money would be if it were in your 401k, or in a non-SS retirement fund such as FERS or 403(b).

 

[exnavynuke]

I've hit it a couple times and have been right around it most years since I got out of the Navy. Hope to be hitting it for a few more years as the more I make, the more I can save, and the sooner I can say goodbye to working!

 

[CardsFan]

44 years of SSA earnings (starting at age 17), 25 at the max. According to my records, my employers and I have contributed $312,000.

Some food for thought:
According to this website https://www.crystalbull.com/Social-Security-Privatization-Calculator/ my account would be valued at over $2,000,000 if I had invested both my employers and my contributions in the S&P500, and over $650,000 if invested in 10 year treasuries. So a 50/50 split would have yielded about $1,325,000.

FWIW, I am not advocating for privatization. This site just happened to have a calculator that satisfied my calculation needs.

 

[MRG]

To the best of my knowledge, I hit it in '96 and every year till I retired in '13. There was two different years where an option exercise early in the year caused me to max out in the first quarter. A first class problem for sure.