Question About The Earnings Cap

the filing in january is something very different , which you did not understand and quite frankly i did not either when i first learned about this .

here is the deal ... if i file in july under the " special first year rules " which i posted from their site , i can earn as much as i like prior to filing in july .... i would be capped at 1450 x the next 6 months or 8700 before giving money back ......

that is a given ..


now here is were the january comes in .

if you file and catch january as your first check they don't count the prior years earnings at all since it is a new year and as such you don't fall under "first years special rules " you go right to the 2nd year rules which just allow you a max of 17,640 with no monthly cap , just yearly . in the end not a big deal . it really only matters if your first year is the year you will be fra ..

why ? because if you file in january you get the full 45k allowed in the year you will be fra right up until your birthday with no prorating . so if you are born in march you can earn 45k for january , feb and march and give nothing back . once you are fra there is no limit . if you filed after january you get prorated up to your birthday at 3750 a month .

bottom line is earnings prior to filing ARE NEVER COUNTED
That is why there is a special one-year rule that applies to earnings during the first year of retirement. Under this rule, an individual can get a full Social Security check for any whole month he or she is retired, regardless of yearly earnings prior to claiming benefits.
 

mathjak107 said:
the filing in january is something very different , which you did not understand and quite frankly i did not either when i first learned about this .

here is the deal ... if i file in july under the " special first year rules " which i posted from their site , i can earn as much as i like prior to filing in july .... i would be capped at 1450 x the next 6 months or 8700 before giving money back ......

that is a given ..


now here is were the january comes in .

if you file and catch january as your first check they don't count the prior years earnings at all since it is a new year and as such you don't fall under "first years special rules " you go right to the 2nd year rules which just allow you a max of 17,640 with no monthly cap , just yearly . in the end not a big deal . it really only matters if your first year is the year you will be fra ..

why ? because if you file in january you get the full 45k allowed in the year you will be fra right up until your birthday with no prorating . so if you are born in march you can earn 45k for january , feb and march and give nothing back . once you are fra there is no limit . if you filed after january you get prorated up to your birthday at 3750 a month .

bottom line is earnings prior to filing ARE NEVER COUNTED
That is why there is a special one-year rule that applies to earnings during the first year of retirement. Under this rule, an individual can get a full Social Security check for any whole month he or she is retired, regardless of yearly earnings prior to claiming benefits.
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The 45K is assuming your going out at FRA...It don't apply if you retire before FRA....
 
Phillip said:
The 45K is assuming your going out at FRA...It don't apply if you retire before FRA....
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Wrong again .. the year you turn fra you fall under different rules .. you can earn up to 45k before giving any back ..after fra there is no limit.. you can earn 3 dollars in that year you will be fra before giving back.. that is just up to your birthday .. after it you have no more limit at fra

first year and the year you turn fra are subject to different rules..

there is is a lot of info out there on this stuff. I suggest you start to brush up on it because you are confused on lots of things
 

mathjak107 said:
Wrong again .. the year you turn fra you fall under different rules .. you can earn up to 45k before giving any back ..after fra there is no limit.. you can earn 3 dollars in that year you will be fra before giving back.. that is just up to your birthday .. after it you have no more limit at fra

first year and the year you turn fra are subject to different rules..

there is is a lot of info out there on this stuff. I suggest you start to brush up on it because you are confused on lots of things
Click to expand...

Nope..Afraid not...$45,000 is what your allowed to make when you reach FRA....62-65 or whatever you can make no more than the 17,640...

I suggest you start to brush up on it because you are confused on lots of things
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Nothing to brush up on..They will change it agian tomorrow.

there is is a lot of info out there on this stuff.
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A lot of lies, little truth. They told me I will get my first check next month, you think I believe them? Hell no!
 
I have not seen any articles on the internet that had mis information about first year rules . They are pretty cut and dry ..... I think you just misunderstood what ss told you about January ... I can’t imagine them telling anyone that their first year earnings prior to filing count ..

and noooooo you are still wrong .". The year you will be fra you can earn up to 3750 a month UP TO 45k UNTIL YOUR BIRTHDAY WHEN YOU TURN FRA .... ONCE YOU TURN FRA THERE IS NO MORE LIMIT FROM THE NEXT MONTH ON..

why do you insist on posting misinformation without looking it up ?

Go go look up special rules for the year you will be fra and post what you find ... I am tired of explaining it to you only to have you wrongly argue
 
Here I will do it for you..

There is a larger earnings limit and a different rule that applies the year of your FRA. If you collect Social Security benefits during the year you reach FRA, Social Security will deduct $1 in benefits for every $3 you earn. In 2018, the limit on earnings for the year you reach FRA is $45,360 (up from the 2017 limit of $44,880, once you reach your birthday all earning limits end
 
mathjak107 said:
why do you insist on posting misinformation without looking it up ?

Go go look up special rules for the year you will be fra and post what you find ... I am tired of explaining it to you only to have you wrongly argue
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Some folks are just happier being unhappy. You're screwing that up for him. ;)
 
As they say , never let facts get in the way of a good story. all the info is right on the ss site . instead of trying to argue what they obviously are not well versed in , go and look . or just google special rules for social security . it could not be spelled out any clearer in article after article .

i don't mind teaching someone who doesn't know but then don't try to tell me i am wrong when this is basic stuff . ...
 
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mathjak107 said:
Here I will do it for you..

There is a larger earnings limit and a different rule that applies the year of your FRA. If you collect Social Security benefits during the year you reach FRA, Social Security will deduct $1 in benefits for every $3 you earn. In 2018, the limit on earnings for the year you reach FRA is $45,360 (up from the 2017 limit of $44,880, once you reach your birthday all earning limits end
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Do you think the OP is confusing FRA (it was 66 for me) with the first year you are eligible to receive benefits (62 I think)?
 
no , because they know first year is capped at 17,640.00. but they refuse to listen to the fact that earnings before filing don't count . they still remain ignorant of the fact the cap is 45k in the year you will be fra up until your birthday , then once you hit fra there is no cap .

.... but they obviously don't want to learn or be corrected . so they can believe what they want as long as those here interested in learning get it correctly .

there really is nothing conflicting at all about any of this . all the sites and articles have it correct . it is just the fact that those who get it wrong don't take the time to learn so they spew their incorrect interpretation of what they think they heard instead
 
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for those who want to know more about just what the point of january filing is , this is about the best explanation i have seen . it only applies to those between fra and 70 .

[h=2]For Example…[/h][FONT=&quot]Let’s say you have a PIA of $2000 at your full retirement age of 66. And let’s say you turn 66 in June of 2015. You decide to wait until you turn 68 (two years past your FRA) to claim your benefit. You would then be entitled to a 16% higher benefit. When you file at age 68, you’re expecting to receive $2320 a month but when your first payment shows up the amount is for $2240.[/FONT]
[h=2]What happened?[/h][FONT=&quot]Because of how Social Security sets benefits, you only receive the delayed retirement credits that accrued as of Jan 1 the year you filed. Since you filed in June of 2017, you only get 18 months credit; 12 months for 2015 and 6 months for 2016. Based on this determination, you will only see an increase of 12% to your benefit instead of the 16% owed to you. Eventually you’ll get full 16%, but not right away. You will have to wait until January 2018 to get credit for the 24 months of your delayed retirement credits. Then your benefit will increase to the expected $2320.[/FONT]
[h=2]Underpayment?[/h][FONT=&quot]You’ll notice that there are six months where you are essentially underpaid. From June 2017, until January 2018, you receive $80 less a month than what your retirement benefit should be. Unfortunately, there is no way to get this money back. Social Security will not make up the difference at a later date.[/FONT]
[h=2]Age 70[/h][FONT=&quot]For some strange reason, if you delay your retirement benefit until age 70, you will get your full 32% right away. The “January Rule” won’t apply. However, anyone filing between FRA and age 70 may lose out on some of their benefit, depending on the timing.[/FONT]
 
he did and did not understand them ....

but this is still basic stuff . anyone who is getting ready to get social security should at least understand the basics . the first year and fra year earning cap rules are pretty basic stuff and are clearly explained in every article about working and getting ss..

this is the problem today . most people know more about their car , sports scores and refrigerator then they do most things pertaining to the health of their financial well being . the average person puts in more time researching restaurants then learning about retirement planning , investing and social security which has a direct impact on them .
 
finally someone who gets it .. this is not rocket science . it is pretty clear what the rules are if people want to learn .. there are two special rules , first year and the year you will be fra which buck the standard formula
 
that's okay , the info is really here for everybody who needs to know ... i never really post just for the op ... usually when they argue and are wrong they vanish anyway .
 

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