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earnings limit how much money can you make while you get monthly social security retirement payments

The Social Security Earnings Limit ~ How Much Money Can You Make While You Get Monthly Social Security Retirement Payments?


The earnings limit on how much money you can make while you get monthly social security payments depends on how old you are this year. First we tell you about your Normal Retirement Age.
  1. Part 1 is for you if you have reached Normal Retirement Age.
  2. Part 2 is the Social Security earnings limit if you are younger than Normal Retirement Age.
  3. Part 3 is the Social Security earnings limit if you reach "Normal Retirement Age" this year.

Social Security Account
What exactly is "Normal Retirement Age"? Normal Retirement Age is when you can collect 100% of your Social Security retirement payments. Normal Retirement Age varies from 65 to 67 years, depending on your year of birth. You can find your Normal Retirement Age in this complete chart of Social Security Retirement Benefits by year of birth.

As the chart shows, if you were born in 1960 or after 1960, your Normal Retirement Age is 67 years old. This means that at age 67 you can receive 100% of your Social Security benefits in monthly payments. If you were born before 1960, your Normal Retirement Age is less than 67 years.
  1. Part 1. Have you already reached "Normal Retirement Age" according to the rules for Social Security retirement payments? If so, there is no earnings limit. You may make any amount and still get your Social Security payments in full.

  2. Part 2. If you are younger than "Normal Retirement Age", getting Social Security retirement payments and still working, your Social Security payments will be reduced. You can earn wages up to the earnings limit of $14,640 with no reduced Social Security. In 2012, any money you make over the earnings limit of $14,640 will reduce your Social Security payments. Every $2 you make over the limit reduces your Social Security payments by $1. For 2013, that limit is $15,120.

  3. Part 3. Do you reach "Normal Retirement Age" this year? If so, there is a higher earnings limit on how much you can make before your monthly Social Security payments are reduced. In 2012 you can make up to $38,880 with no reduction in Social Security. Every $3 you make over the earnings limit will reduce your Social Security payments by $1. After the month you reach "Normal Retirement Age", you will get your entire Social Security payments with no reduction. If you will reach Normal Retirement Age in 2013, the earnings limit for the months before Normal Retirement Age is $40,080.

The Social Security earnings limits, $15,120 and $40,080, will change from time to time, depending on the law. These earnings limits are effective as of 2013.

The limit on what you can earn and still get your Social Security payments in full seems complicated, and it is. The Normal Retirement Age used to be 65 for everyone, but it is gradually being increased for younger people. As normal life expectancy increases, it is reasonable to postpone retirement and Social Security payments.

When you earn any wages this year, Social Security tax will be withheld by your employer and remitted to the government. The tax will be withheld from your paycheck. It makes no difference whether or not you are already collecting Social Security retirement payments.

Because you are still working and earning and paying into Social Security, the monthly retirement payments you get will be increased once a year to take into account your additional earnings.

Some of your monthly Social Security retirement payments may be subject to Federal Income Tax.

I hope you have a very happy day.
The Retirement Coach


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