Social Security Retirement Earnings Test Calculator
Calculate benefit withholding when working before FRA.
Earnings Test Status
Earnings Limit:$ 22280
Your Income:$ 25000
Excess:$ 2720
Years to FRA:5
Test Applies:Yes (before FRA)
2024 earnings limit: $22,280 before FRA, $59,460 in year of FRA (months before only).
Benefits Withheld
Withheld Amount:$ 1360
Withheld Months:2
Rate:$1 per $2 over limit
Before FRA: SSA withholds $1 for every $2 earned above $22,280.
Actual Benefit Received
Monthly Benefit:$ 1200
Actual Received:$ 1000/mo
Annual Received:$ 10000
If months withheld ≥ 12, $0 benefit that year. Otherwise, benefit reduced proportionally.
Recalculation at FRA
Months Credited:2
Benefit Increase:$ 200/mo
Adjusted Benefit:$ 1400/mo
Withheld benefits are NOT lost - SSA recalculates at FRA to credit withheld months.
Net Income Analysis
Work Income:$ 25000
After SS Penalty:$ 23640
SS Received:$ 10000
Total Income:$ 33640
Net Gain Working:$ 23640
Working still adds income despite SS withholding. Penalty recovered at FRA.
Retirement Earnings Test Key Points
- Before FRA: $1 withheld per $2 over $22,280 (2024)
- Year of FRA: $1 withheld per $3 over $59,460 (months before FRA)
- After FRA: No earnings test - work freely
- Withheld benefits recovered at FRA recalculating
- Grace year: higher limit, pro-rated in FRA year
- Working still beneficial despite withholding
- Report income to SSA to avoid overpayment
- Self-employment income counted differently
- Only count earned income, not investments/pension