Great Video! My Question: What if FRA is age 67 and you take SS in 2025 which is the year you turn 65. You are retired and not working, but receive a payout or bonus as the retired lawyer from “your own” law firm on a settled court case (case began years ago but finally settled and $$ received in 2025) it’s a large sum…considerably more than the total annual social security income would be. How is that viewed by Social Security with regard to disqualifying your social security payments? Seems like all social security would have to be given back??? And….don’t quite understand if the “payback” at FRA would apply. Would much Appreciate any clarification. Thanks.
@@MrRetirement. Thanks for the information. I was not aware of the “special Rule for 1st year of retirement”. Great information and it may apply as it mentions no maximum amount (says regardless of income) so there may be a silver lining 😊. Appreciate the article. Thanks again!
Great video my birthday is in January and I turn 62 and I won't get my first check till February is the 22400 from February or does it start at January? Thanks
You must be 62 for a full month. If you are born the the 3rd or later your first payout will be in February - either the 2nd, 3rd or 4th Wednesday depending on if your are in the beginning, middle or end of the month.
I plan on collecting at 62. I turn 62 in August 2025. Does the money I make from January 2025 to August 2025 count toward the earned income limit for 2025?
question for you. My wife thinks if i retire at 62 ill get a certain dollar amount. Then when i hit 67 i get the 67 age dollar amount. then at 70 i get the 70 year dollar amount is this true? i always thought the year you retire you are stuck with that dollar amount for life even after you hit 67 or 70.
Once you start your retirement benefit you are stuck at that retirement benefit amount, plus cost of living adjustments. If you are promised $2000 at 67, then it would be 30% pay cut, for life, or $1400 at 62, or it would be $2480 at 70 (24% pay raise for life).
My FRA is in April 2026, I want to store my benefits in January 2025. I will still be working full-time and most likely be close to 20,000 over the yearly earnings limit. My question is about the first year rule. Will Social Security send me checks from the beginning of the year until I reach the yearly earnings limit or does it automatically go by the monthly earning limit with them knowing I will be way over the yearly?
@ Thanks for your response. I’m still unclear if they will switch it to the monthly earnings test since it it is the first year I want to collect. Does the monthly test only come into play if you decide to collect midyear after going over the yearly test? I won’t have any months under the monthly amount.
If your income is consistent it should go by monthly - when you apply you'll be asked what your income will be in 2025. They'd rather see the estimate ahead of time so they don't overpay you upfront.
@ thanks again for your reply. I was hoping that wasn’t the case where it would go mostly because then I won’t see anything all year. I was hoping they would just stick with the yearly test and have them hold back a few months before I started receiving any just to get some cash flow going in the second half of the year.
When you apply let them know how much you expect to earn and they should be able to tell you exactly how much and when you’ll be getting benefits for 2025. Hit your Full Retirement Age and the income limits won’t matter anymore!
Currently, I'm collecting Social Security, In August of 2025 I will reach my FRA. What is the maximum I can earn for the first seven months? Thank you.
From SSA: In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2025, this limit on your earnings is $62,160. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year. www.ssa.gov/benefits/retirement/planner/whileworking.html
If I collect early at 62 I am penalized at a lower amount, and that amount is set for life. They should pay the full amount if I don't make it over the; limit and should change to the full amount at 67. It is not fair to penalize anyone at 62 who agreed to take a lower amount for life.
For every month under Full Retirement that SS withholds because of going over earnings limit - they will credit that back to you once you hit Full Retirement. Your 30% paycut will not be so large starting then.
The goal of allowing early filing to to hopefully equal over lifetime to someone who files at retirement age. It’s natural for filing early to create a lower benefit, because you get it over more years.
The goal is get a retirement benefit at retirement age when you are retired. The government figures if you are making enough money you are not truly retired.
Im 62 and plan to take survivor benefit in 2025. I will be over the earnings limit. So will SSA go ahead and make up for what I lost even though its a survivor benefit were looking at?
Just to clarify your taking survivor benefits not spousal ? You could have taken survivor at age 60 . Second you will not be penalized if you are not taking YOUR benefits .
@@Satjr35031 Its a survivor benefit I will be taking. I will get between 71 and 99 percent of what my deceased wife benefit would have been at her FRA. I believe I will earn above the limit for each of the next 5 years. So if I took my own SS 1-1-25 then at age 67 the SSA would help me recoup what they withheld. But if I instead go ahead and take the survivor benefit as planned will the SSA still help me recoup what they withheld?
@satjr35031 @davidleonard4925 It doesn't matter whether you take your own Retirement, or Spousal, or Survivor - there is still an 'earnings limit' that applies below your Full Retirement Age month: www.ssa.gov/benefits/retirement/planner/whileworking.html
@Satjr35031 is correct that you were eligible for your Survivor Benefit at 60. @davidleonard4925 if you are over the earnings limit they will withhold sum, but perhaps not all of the benefit. I see no harm in filing for the Survivor benefit - you'll get what you're due, and anything they withhold would get credited back to you when you hit Full Retirement Age. !!! Be very careful that they actually send you only the survivor benefit - they could easily sign you up for your own benefit and you would be stuck there for life if they do. Reiterate and doublecheck that you are signed up for your own Survivor Benefit. You can switch over to your own benefit at any time, still subject to earnings limits if below FRA, but usually the best max is to wait on your own benefit until 70 - which isn't too bad financially since they're paying you Survivor Benefits the whole time.
Great Video! My Question:
What if FRA is age 67 and you take SS in 2025 which is the year you turn 65. You are retired and not working, but receive a payout or bonus as the retired lawyer from “your own” law firm on a settled court case (case began years ago but finally settled and $$ received in 2025) it’s a large sum…considerably more than the total annual social security income would be. How is that viewed by Social Security with regard to disqualifying your social security payments? Seems like all social security would have to be given back???
And….don’t quite understand if the “payback” at FRA would apply. Would much Appreciate any clarification. Thanks.
Hopefully that doesn’t count. Congrats by the way! Check out the bottom of page 4 in this explainer manual - www.ssa.gov/pubs/EN-05-10069.pdf
@@MrRetirement. Thanks for the information. I was not aware of the “special Rule for 1st year of retirement”. Great information and it may apply as it mentions no maximum amount (says regardless of income) so there may be a silver lining 😊. Appreciate the article. Thanks again!
Excellent!
Great video my birthday is in January and I turn 62 and I won't get my first check till February is the 22400 from February or does it start at January? Thanks
You must be 62 for a full month. If you are born the the 3rd or later your first payout will be in February - either the 2nd, 3rd or 4th Wednesday depending on if your are in the beginning, middle or end of the month.
@MrRetirement thanks for the reply. It's January 4th so what you're saying is the 22400 starts in February after being 62 for a full month. Correct?
Yes, that’s per month, so divide by 12. And you will earn SS for February and get first check in 2nd Wed March.
@MrRetirement thank you sir for the reply 👍
Anytime!
I plan on collecting at 62. I turn 62 in August 2025. Does the money I make from January 2025 to August 2025 count toward the earned income limit for 2025?
If you don’t work after you collect then you’ll be fine - you’ll fall under the “monthly test.”
question for you. My wife thinks if i retire at 62 ill get a certain dollar amount. Then when i hit 67 i get the 67 age dollar amount. then at 70 i get the 70 year dollar amount is this true? i always thought the year you retire you are stuck with that dollar amount for life even after you hit 67 or 70.
Once you start your retirement benefit you are stuck at that retirement benefit amount, plus cost of living adjustments. If you are promised $2000 at 67, then it would be 30% pay cut, for life, or $1400 at 62, or it would be $2480 at 70 (24% pay raise for life).
If I work and earn over the $1950 monthly limit for only one month will that $1 per every $2 be held for the following month or longer?
They will reevaluate each year.
My FRA is in April 2026, I want to store my benefits in January 2025.
I will still be working full-time and most likely be close to 20,000 over the yearly earnings limit. My question is about the first year rule. Will Social Security send me checks from the beginning of the year until I reach the yearly earnings limit or does it automatically go by the monthly earning limit with them knowing I will be way over the yearly?
When you file, they will ask you how much you plan to make in 2025 and they will base what they send you and when you send you off of that.
@ Thanks for your response. I’m still unclear if they will switch it to the monthly earnings test since it it is the first year I want to collect. Does the monthly test only come into play if you decide to collect midyear after going over the yearly test? I won’t have any months under the monthly amount.
If your income is consistent it should go by monthly - when you apply you'll be asked what your income will be in 2025. They'd rather see the estimate ahead of time so they don't overpay you upfront.
@ thanks again for your reply. I was hoping that wasn’t the case where it would go mostly because then I won’t see anything all year. I was hoping they would just stick with the yearly test and have them hold back a few months before I started receiving any just to get some cash flow going in the second half of the year.
When you apply let them know how much you expect to earn and they should be able to tell you exactly how much and when you’ll be getting benefits for 2025. Hit your Full Retirement Age and the income limits won’t matter anymore!
Currently, I'm collecting Social Security, In August of 2025 I will reach my FRA. What is the maximum I can earn for the first seven months? Thank you.
From SSA: In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2025, this limit on your earnings is $62,160. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.
www.ssa.gov/benefits/retirement/planner/whileworking.html
@@MrRetirement Thank you for the quick response!
Of course. Best wishes!
If I collect early at 62 I am penalized at a lower amount, and that amount is set for life. They should pay the full amount if I don't make it over the; limit and should change to the full amount at 67. It is not fair to penalize anyone at 62 who agreed to take a lower amount for life.
For every month under Full Retirement that SS withholds because of going over earnings limit - they will credit that back to you once you hit Full Retirement. Your 30% paycut will not be so large starting then.
Why do think you can get more from the system than a person who waits until FRA?
If you geeting less money you shouldn't be penalized for making more money on the side.
The goal of allowing early filing to to hopefully equal over lifetime to someone who files at retirement age. It’s natural for filing early to create a lower benefit, because you get it over more years.
The goal is get a retirement benefit at retirement age when you are retired. The government figures if you are making enough money you are not truly retired.
Im 62 and plan to take survivor benefit in 2025. I will be over the earnings limit. So will SSA go ahead and make up for what I lost even though its a survivor benefit were looking at?
@davidleonard4925
The earnings limit applies no matter which benefit you get.
What’s making you want to take the survivor benefit in 2025?
Just to clarify your taking survivor benefits not spousal ? You could have taken survivor at age 60 . Second you will not be penalized if you are not taking YOUR benefits .
@@Satjr35031 Its a survivor benefit I will be taking. I will get between 71 and 99 percent of what my deceased wife benefit would have been at her FRA. I believe I will earn above the limit for each of the next 5 years. So if I took my own SS 1-1-25 then at age 67 the SSA would help me recoup what they withheld. But if I instead go ahead and take the survivor benefit as planned will the SSA still help me recoup what they withheld?
@satjr35031 @davidleonard4925 It doesn't matter whether you take your own Retirement, or Spousal, or Survivor - there is still an 'earnings limit' that applies below your Full Retirement Age month: www.ssa.gov/benefits/retirement/planner/whileworking.html
@Satjr35031 is correct that you were eligible for your Survivor Benefit at 60.
@davidleonard4925 if you are over the earnings limit they will withhold sum, but perhaps not all of the benefit. I see no harm in filing for the Survivor benefit - you'll get what you're due, and anything they withhold would get credited back to you when you hit Full Retirement Age.
!!! Be very careful that they actually send you only the survivor benefit - they could easily sign you up for your own benefit and you would be stuck there for life if they do. Reiterate and doublecheck that you are signed up for your own Survivor Benefit.
You can switch over to your own benefit at any time, still subject to earnings limits if below FRA, but usually the best max is to wait on your own benefit until 70 - which isn't too bad financially since they're paying you Survivor Benefits the whole time.