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Hoots : If I start earning again, does my USA SS income get reduced? I have not shown any income for the past seven years, and receive about 0/month in Social Security. This year I will earn about ,000. Will this affect my - freshhoot.com

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If I start earning again, does my USA SS income get reduced?
I have not shown any income for the past seven years, and receive about 0/month in Social Security. This year I will earn about ,000. Will this affect my SS income, and if so by how much (approximately)?


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It depends. It's complicated: if you are under your Full Retirement Age (FRA), then benefits are reduced by for every earned over ,640. In the year you reach FRA, they're reduced by for every earned. And if you're over FRA, they're not reduced at all. At least if I have correctly interpreted the SS web page: www.ssa.gov/planners/retire/whileworking.html
PS: As Dilip Sarwate notes in a comment, your K earnings this year will almost certainly (given that your current benefit is only 0) increase your benefit in future years. The benefit is calculated using your highest 30/35 (don't remember exactly which) earnings years, indexed for inflation. So the K will replace your lowest earning year, giving a higher benefit amount.

(If I've understood the SS material, something similar is also the case if benefits are reduced due to earnings: the reduction factors into an increased benefit after FRA.)


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