Social Security earnings limit

[schirallicpa]

(I feel like this question has been asked before)

Client wants to retire in the summer when he turns 65.  Born in 1952 so full retirement benefits won't kick in til next year.  He will earn $35000 up to point of retirement.  Does the $16920 limit on earnings start the day after he retires and is that annual?  In other words do I start counting towards the $16920 limit the day after he retires?  And the money he made before he retired doesn't count toward that?  And - it's not a monthly amount?  Again - in other words - regardless of the date he retires in 2017, he can make $16920?  

[Gail in Virginia]

According to SSA Retirement Planner:

• If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2017, that limit is $16,920.

• In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2017, the limit on your earnings is $44,880 but we only count earnings before the month you reach your full retirement age.

Note: If your earnings will be over the limit for the year but you will be retired for part of the year, we have a special rule that applies to earnings for one year. The special rule lets us pay a full Social Security check for any whole month we consider you retired, regardless of your yearly earnings.

 

[schirallicpa]

it always amazes me that clients think i am automatically their retirement expert as well as their tax expert - and lets not forget financial investment expert, real estate expert, and all around "I don't want to bother to ask my lawyer so i'll bug my accountant" expert.

 

[Roberts]

Gail nailed that answer.