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Mr. Pixy presented a valuable recap of options regarding taking Social Security benefits prior to age 65 or waiting until 65. One of the items he mentioned was taking Social Security checks and investing them until the money is actually needed for living expenses. That's what I had planned to do. I will be 65 in May and planned to continue working the remainder of the year and invest my Social Security checks for the final six months of the year. Social Security, however, says I can't do that because of the earnings cap. They say by May I will have exceeded the earnings cap and must give up a third of my Social Security. I had been told previously in a retirement seminar that my earnings counting toward the earnings cap didn't start until you began drawing Social Security. Social Security says it starts at the beginning of each calendar year. Somebody is not being truthful, I think. Anyone got any answers?

WardDegler
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Greetings, WardDegler, and welcome. You asked:

<<I had been told previously in a retirement seminar that my earnings counting toward the earnings cap didn't start until you began drawing Social Security. Social Security says it starts at the beginning of each calendar year. Somebody is not being truthful, I think. Anyone got any answers?>>

In the year you actually retire and begin drawing benefits, they actually use a monthly rate for the earnings cap. At 65, that would be $17,000 divided by 12. If you get your first check on May 1, then any earnings for May through December are capped at $1,426.67 per month. That means you can only earn $11,333.33 cents without forfeiture in your first year of retirement.

Regards..Pixy
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TMFPIXY POST 2872
My wife started drawing her SS last year. She was 65 in March and making 25k a year. She was not able to draw starting in march but the funds was withheld until September where she drawed the full amount for the remaining of the year. This year she starts drawing in July. Am I misreading your answer.
Walter
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Greetings, Walter, and welcome. You wrote:

<<My wife started drawing her SS last year. She was 65 in March and making 25k a year. She was not able to draw starting in march but the funds was withheld until September where she drawed the full amount for the remaining of the year. This year she starts drawing in July. Am I misreading your answer.>>

I can't speak to your wife's case as I don't know the specifics; however, you may read about what happens in the actual year of retirement on the SSA website at http://www.ssa.gov/pubs/10069.html in the booklet "How Work Affects Your Benefits." If she didn't work in April through December, then regardless of what she made through March she should have received full benefits for those months. OTOH, if she did work, then last year she was limited to an income of $1,292 per month before the forfeiture kicked in.

Regards..Pixy
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