Social Security and Retirement: Working and taking social security benefits can be a tricky proposition, because there are limits to how much you can make before the SSA starts with holding benefits from your social security checks. So today we are talking about the new higher earnings limits for people working and receiving social security in 2023.
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Accords the country many older Americans, seniors and retirees face the challenges of todays economic environment with faith and courage. My hope is that we can improve the lives of our older friends, family members and neighbors by shedding light on the complex, byzantine and frustrating Social Security system that many rely on to make ends meet. So weather it is trying to retire early at 62 , first claiming social security benefits at 67 getting updates about social security topics like the Cost of Living Adjustment, new rules and regulations, and new laws around Social security , will make the process easier. This will help those folks who are Social Security Retirment, Social Security Disability SSDI, Supplemental Security income SSI, and Railroad Retirment Benefits.
But without a doubt, no matter how much money and help is available to Americans, Seniors and Retirees, these resources do not do any good for people, if they don’t know about them. That is why we are here to discuss the various government programs that are meant for those in our communities who need an extra bit of help to get back on their feet. Hopefully our video helps you better understand the help that is available for you, for the community , and for our friends , neighbors and family members. Please enjoy this video and don’t forget to like and subscribe if you find this video interesting, helpful or useful. Thank You!
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Social Security and Retirement 2023: Working & Receiving Social Security Benefits. Income Limits 2023
For many Americans, the prospect of retirement is something that they look forward to. It’s a time to leave the workforce and enjoy the fruits of their labor. However, many people continue to work after retirement age, either by choice or out of financial necessity. If you fall into this category, you may be wondering how working affects your social security benefits. In this article, we’ll discuss the income limits for 2023 and how they impact your social security benefits.
First, it’s important to understand that if you are under full retirement age (FRA), which is currently 66 years and 8 months, you can still work and receive social security benefits. However, if you earn over a certain amount, your benefits will be reduced. Once you reach FRA, there are no earning restrictions, and you can work and earn as much as you want without affecting your social security benefits.
The income limits for 2023 are based on your age and your projected annual income. If you are under FRA, you can earn up to $18,960 in 2023 before your social security benefits will be reduced. For every $2 you earn over this limit, your benefits will be reduced by $1. So, for example, if you earn $20,960 in 2023, your benefits will be reduced by $1,000 ($20,960 – $18,960 = $2,000 / 2 = $1,000).
If you reach FRA in 2023, you can earn up to $50,520 before your benefits will be reduced. For every $3 you earn over this limit, your benefits will be reduced by $1. So, for example, if you earn $53,520 in 2023, your benefits will be reduced by $1,000 ($53,520 – $50,520 = $3,000 / 3 = $1,000).
It’s important to note that these income limits only apply to earned income. This includes wages, tips, and self-employment income. It does not include investment income, pensions, annuities, or government benefits. Also, if you are married and file taxes jointly, these limits apply to your combined income.
If you do end up earning over these income limits, don’t worry, your benefits are not lost forever. Once you reach FRA, your benefits will be recalculated to account for the reduction, and you will receive higher monthly payments for the rest of your life. Additionally, if you stop working or reduce your income, your benefits will be recalculated again to account for the reduction.
In conclusion, if you plan to work after retirement age, it’s important to understand the income limits and how they impact your social security benefits. By knowing the income limits for 2023, you can make informed decisions about your retirement and your income. Remember, social security is just one part of your retirement plan, and it’s important to have a comprehensive plan that includes savings, investments, and other sources of income.
Do you think it makes sense that Social Security penalizes some folks for working and taking benefits at the same time?
The less one earns, the less put back into the economy. Gov’t not to smart…
I just wish that I could make more money while being on social security, but I know if I make too much money it will mess up my social security greatly. so, I'm pretty much afraid of making money. 🙁
also the SSA does not do partial nor do they spread the loss of benefits over a period of time, if your over the earnings limit by $1500 say and your drawing $1000 SS then your Jan & Feb checks will be withheld. At age 67 your benefits are recalculated to allow for the months withheld.
for the love of god who TF wants to work till there bloody 70
This is BS
I am in an odd situation. I am working full time from April 2023 thru July 2023 at 65 years old. And drawing social security. I also will continue working full time until Mt full retirement age in Feb 2024 at 66.5 years old. What saving vehicle can I use to place my overage to prevent social security overage penalties or offset them until I reach my FRA? an IRA or 401k?
Or other federal tax savings vehicle.
How about if you work for cash payment jobs while receiving retirement payment
Does the $56K limit apply to the entire FRA calendar year or just the months prior to reaching FRA?
Does the penalty last forever? What about when you hit 70?
Is that earned income that affects the ss check at 62, or any other income at 62? Does a military pension affect the amount? What about a VA disability pension?
I'm contemplating retiring today at 65 & 4 months. My FRA is at 66 & 6 months. So do I have this right? This year I could make as much as 21,240. Next year in the rear I will reach my FRA I can make as much as 56,520. Then in subsequent years, I can make as much as I want. Is that correct?. When I reach FRA dies my benefit increase to that level of benefit if I waited until FRA to start collecting,?
So essentially you will be working for nothing. For example #1 take the ssi max 21,400 +15,347(ssi) =36,747. Why work for an additional $2240? And don’t forget, they will take taxes out of that 2240 so you won’t even be getting that!
Full retirement age, how much can I make before they reduce my benefits ? Seems I need to know more about the tax on my benefits – would like to hear more about my situation, making 107k working full time FRA.
I was born in 1958 and my full retirement is 66 and 8 months. I work 50 to 60 hours a week and would love to slow down. However we are now having to raise two grandkids 12 and 15 years old. How much can social security penalize me?
21240 / 12 is 1770 per month. You said 1780, then you said 1680. Both are wrong and they don't even agree with each other.
V painful ! It is your money ! The Limit is putrid to hold before FRA and we know in reality the state salary scales! This would give the citizens to save ( Macro Econ to stimulate the economy ) or enjoy life a bit with travel or pay their debts ! Humans don’t live forever !! Surprising for a Capitalist country ! The savings could pay for the les retirement check! This should be lobbied to Washington. Sir!
When does social security claw back their $1 for every $2? In January or after taxes are filed in April?
Greedy seniors should be ashamed that their kids are supporting them. SS is Federal welfare.
I will turn 66y old in 2023, I have to wait for Full age @ 66.5yrs. I want to work past collecting ss. When should I apply for benefits w/out any penalties?
Appeal if your at the limit or less they CANNOT take 2 dollars for every dollar IF you don't go over. I know cause I'm on disability like I stated before call and be on the safe side.
Hate to tell you, but if you went to work to make ends meet, they still have a way for every 1 dollar you make they take 2 dollars
That's not all ENTIRELY true. Each state you can earn so much. Call your social security office in your state and find out EXACTLY how much you can make. Be safe than sorry…I live in COLORADO and you can't make more than $1390.00 a month so cover your butt be safe and call..
Hey dude why some people haven’t received the gas tax stimulus even doe they qualify and file their tax electronically?
Does your wife's income have to be included in your income when you do taxes at the end of the year because we file jointly. I'll be 65 this Nov. 2022, retiring March 2023. How much can I make next year? My FRA is 66.6 years.
I'm 71 and on SSI have the rules changed so I can make more than $85 dollars a month without being penalized?
Love ur channel
U rock
Hi Michael