Ssa

[Glowpun]

What is this I hear that if one gets retirement income elsewhere that social security will deduct that amount from the SSA benefit amount? Is this true?

 

[Lutherf]

What is this I hear that if one gets retirement income elsewhere that social security will deduct that amount from the SSA benefit amount? Is this true?

Not exactly.

If you are below full retirement age and still earning income (from a job or self employment) they will reduce your benefit by $1 for every dollar that you're earned income is beyond a certain threshold (right now that's around $14k). This only applies to earned income so if you're taking money out of an IRA or receiving a pension that money doesn't count.

 

[Lutherf]

Not exactly.

If you are below full retirement age and still earning income (from a job or self employment) they will reduce your benefit by $1 for every dollar that you're earned income is beyond a certain threshold (right now that's around $14k). This only applies to earned income so if you're taking money out of an IRA or receiving a pension that money doesn't count.

That's what I get for typing in the middle of the night....the reduction is $1 dollar for every TWO dollars you're over the threshold.

 

[DiAnna]

Not exactly.

If you are below full retirement age and still earning income (from a job or self employment) they will reduce your benefit by $1 for every dollar that you're earned income is beyond a certain threshold (right now that's around $14k). This only applies to earned income so if you're taking money out of an IRA or receiving a pension that money doesn't count.

That's what I get for typing in the middle of the night....the reduction is $1 dollar for every TWO dollars you're over the threshold.

:thumbs:

Absolutely correct! Good post.

 

[greyhat]

What is this I hear that if one gets retirement income elsewhere that social security will deduct that amount from the SSA benefit amount? Is this true?

You should check what your full retirement age is; it isn't 65 for everyone, depending on when you were born it could be later, 67 for example.

The current threshold (2013) is $15,120 and as Lufther pointed out for every $2 ABOVE the threshold you give up $1 of benefit. This applies until you reach the full retirement age in which year the threshold goes up; for 2013 it is $40,080 at which point the ratio changes to $3:$1 until your month of birth, and thereafter here is no limit on income or reductions in benefits.