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The Social Security Income Penalty Will Be Refunded To You At Full Retirement Age

Michael Ruger - Greenbush Financial Group

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If you decide to turn on your Social Security before your full retirement age, the IRS has something called the Social Security Earnings Test where they assess a penalty if you make over a specified amount during that tax year. For 2022, that amount is $19,560 and the penalty is $1 for every $2 you earn over that threshold, but not many taxpayers realize that Social Security actually refunds you the penalty amounts once you reach full retirement age. In this article I’m going to go through
• Social Security Full Retirement Age Based on Date of Birth
• Social Security Earnings Test
• How they assess the Social Security earnings penalty
• How does Social Security refund you the penalties paid when you reach full retirement age
• Other social security filing considerations
Social Security Filing Strategy Video: • Social Security Filing...
Contact Michael Ruger with Questions: 518-477-6686 or mruger@greenbushfinancial.com
Visit our website: www.greenbushfinancial.com/
Subscribe to our channel for more financial planning tips: / @greenbushfinancialgroup
#socialsecurity #retirementplanning

Опубликовано:

7 авг 2024

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Комментарии : 51

@joseCalderon1976 9 месяцев назад

That's exactly what I'm planning to do. I want to retire from my main job and just keep working part time in my hobby an other stuff that I can make money on at 62. I just don't want all that time in my hands. It would only be for like 4 hours a day or so. Thanks for the video. Subscribed.

@jaysilver9193 4 месяца назад

This is the clearest explanation of how this works that I have seen. Thank you!

@bosstime2010 4 месяца назад

Great info. I have called the social security office twice and both people have told me this isn't true. I'm not questioning you, I'm questioning the people they have answering the phone.

@marypohja2812 2 года назад

thank you as always for this info

@dealbreak 7 месяцев назад

Great video. I always knew you recouped the penalty but not the specifics. Well done.

@J_Neighbor 7 месяцев назад

I was aware of how this worked, but this is the best and clearest explanation I have heard, and I thank you!

@perrynillup 5 месяцев назад

Best explanation ever, thanks

@lindawills9184 Год назад

Thank you so much you are so smart and informative I understood it perfectly clear about what you said thank you and God bless

@ericeandco 2 года назад

Excellent

@louisz8951 Год назад

You forgot to mention the calculation on the year that you meet your FRA. On that year, the threshold is 51k. So, if your FRA is in April 1st and you work those 3 months and you earned income is less than 51k, you don't incur a penalty.

@JK-xl7un Месяц назад

That was helpful. I'm thinking of starting my SS at 64 as opposed to FRA of 67. My family history and health indicate an early exit from this mortal coil so rather than wait until FRA for the full amount I think having some money now for savings and quality of life is a good trade off. And if I do go over the income limit and the SS holding a few months a year may be worth it. Thank you.

@freddielee8500 Год назад

Only the federal government could take something that should be fair and simple and make it unfair and incredibly complicated. If we maintain employment and contribute to society and continue paying taxes we are penalized for it.

@maggiemmoore Год назад

If one takes early retirement due to cancer because one needs money, it is understandable. No? If one then has to return to work the following year, one pays high penalty. At the same time one is continuing to pay into SS in every paycheck. That is totally ignored by SS.

@anniesshenanigans3815 4 месяца назад

@traybern 70 is for 'delayed' retirement. 67 is full retirement age, which means you can make any amount you want. I guess over the years they changed the wording.

@ElParacletoPodcast 22 дня назад

Thanks for the clarification, but ss has to go, this is insanity.

@irishalbino9308 2 месяца назад

They know a certain number will die before fra, saving them money.

@curtzimmerman Год назад

Hi. Very informative maybe you can help. Born July 56. I believe full retirement age November 22. Started claiming at 62. Was working some so about 20 months withheld . Anticipated todays payment, 2/8/23 to be adjusted for all the withheld months but it didn’t . When I try calling ssa the agents find the question too complicated and don’t have an answer. Any ideas? Thanks

@stanrosenfield1116 Год назад

Question: if you turn on your benefits early, and you're into your 2nd or more year of receiving benefits, can you still suspend your benefits, down the road at normal retirement age, in order to receive an additional 8% per year until age 70? I read you can, called CSR, claim early-suspend-resume; however, when I call SSA, the agent tells me no, stating because I filed early, I lose the right to suspend at normal retirement age.

@domenickesposito2384 Месяц назад

They did not withhold any full months to get paid back. They are taking 10% per month until paid off. The payoff runs past FRA so not sure how that affects the refund from them.

@kkw4904 11 месяцев назад

I am 69 and still paying a $40,000 penalty. $400 a month. I have 2 yrs left to pay. I’m working only to pay them. Are u saying this should have stopped at age 66????

@davidleonard4925 3 месяца назад

What about if its a survivor benefit that you take before yout FRA? Do you still get penalty back?

@sarahnovack8350 10 месяцев назад

i am on a payment plan i will not be done with the plan until 8 months past full retierment at 66.6 which will be in jan 0f 24 do i finish paying them and then they recalculate .?

@benzo430 2 месяца назад

how long would take to recoup the held money after 67 if you worked let's say a whole year or would you be better off just waiting a year to file

@j.y.3604 7 часов назад

If you turn to FRA in November and file after FRA are you penalized for the money you earned from Jan. - Oct. of the year you file when you've turned FRA. I make $100K per year, born Nov. 1958, FRA is 66 and 8 months so will they penalize me for the money earned that calendar year Jan. - Oct. right before FRA with plans to continue working at $100k per year while collecting SS at FRA.

@kennethrainero8664 2 месяца назад

What if you make more than your "best 35" while your takeing SS at 62, does that increase your benefits at FRA also, with the payback from the penalty

@dgrove627 5 месяцев назад

However, my girlfriend too her ex husband’s (deceased) social security at 62, not hers. She is not taking her social security.

@davidthompson9359 7 месяцев назад

Thank you for the informative video. Question: I've heard if you don't tell Soc Sec to defer your retirement they will automatically enroll you at 65 even though you are not at your retirement age of 67. Is this true, does Soc Sec automatically assume you will take your social security payments?

@greenbushfinancialgroup 7 месяцев назад

Social security does not automatically turn on your SS benefit at age 65. You have to formally apply to begin receiving your SS payments. (Education. Not advice)

@keithmachado-pp6fv Месяц назад

What happens if you start SS while still working and have some zero income years in your calculation. Does the calculation reset each year so you get more as the zero income years drop off. Also how does 401k contributions impact the penalty calculation. Example what if you eliminate all your income by 401k and IRA contributions.

@anniesshenanigans3815 4 месяца назад

So explain why 67 is called FRA, but the FULL benefits you can get are not until you DELAY PAST FRA at 70? I do not understand why they use these terms.

@ForestToFarm 4 месяца назад

I will attempt this. Fra is 67 and the point that you can earn as much as you want and no longer get a penalty. Then if you wait till some time past 67 they will basically give you a bonus increase for waiting past that full retirement age up till you reach 70. 70 is the cutoff and no further increases will occur. Hope that helps. Terry

@fladave99 10 месяцев назад

I owed 3500 and they let me pay it off over a year

@ItsEverythingElse 10 месяцев назад

Doesn't it take until about age 79 for you to get all the withheld money back? Taking SS when you're still working with a good wage makes no sense.

@michaelford746 5 месяцев назад

I just turned 66 this week. my FRA is 66 and 8 months. if I file tomorrow at 66 will I be penalized from now on or does it change to full benefit at 66.8

@greenbushfinancialgroup 5 месяцев назад

Anytime you file prior to the month of your full retirement age, they reduce your benefit, even if it’s by only a few months. (comment for education not advice)

@SunnyIlha Год назад

They recalculate immediately upon when you STOP working? Had the person started it at 62?

@SunnyIlha Год назад

@T Raybern You ARE dumb!! When you STOP working at 62, or whichever year you stop working, it should NEVER be penalized at any time IF AGAIN working further beyond the year the benefit is taken at it's calculated amount based on the age it's taken! AND *furthermore* , it should be RESTORED to 65, *100%* AND if one works BEYOND 65 Retirement Agedness, there should be NO PENALTY *AT* *ALL* applied! Why? Because the individual has ALREADY *PASSED* the Worker RETIREMENT AGE !

@lkjmpb 6 месяцев назад

If I retired @ 63 but starting drawing SS in June, but worked the 1st 5 months , does maximum earned matter ? Im over 3000.00 due to my work prior to drawing starting June 2023. Also does teacher retirement count?

@greenbushfinancialgroup 5 месяцев назад

Yes, any earned income leading up to the date that you file for Social Security, if you file prior to full retirement age, will count towards the earned income penalty (comment for education, not advice)

@paulallentaylor6034 2 года назад

I started my benefits at 62. I did incur a penalty but how much I can't find. I have reached FRA at 66-4 mos as of July 31 2022. It doesn't seem that its taking place for the August payment. I read that they won't do the recalculation until the payment for January 2023. True? How long do they take to do the recalculation? Thanks

@greenbushfinancialgroup 2 года назад

Hi Paul. Thank you for the question but I'm not sure on the timing of the recalculation. If anyone has experienced this recently, please leave a comment below...... (Comment is for education. Not advice)

@paulallentaylor6034 Год назад

@T Raybern As in my earlier message, I started collecting at 62, but had money withheld due to over earning. I was told once I reached FRA the money withheld will come back to me in some manner. I dont know how much was withheld. I thought I might see a message regarding this. I have not. A call placed to speak with someone may be the only way to answer my question.

@mishkalarsoncreations Год назад

I’ve heard of people not having the reduction happen for years - so confusing

@marymem9864 9 месяцев назад

@@mishkalarsoncreations I think it can take SS years to realize it.

@robinflory6109 Год назад

I received a letter from social security today. It said my December payment would come on or about January 18th. What the hell? Didn't get December payment.