The age at which you're eligible for your full monthly benefits, also known as the primary insurance amount (PIA). The Social Security Administration sometimes refers to full retirement age as "normal retirement age" (NRA).
The temporary reduction in benefits if you work while receiving benefits before you reach full retirement age (FRA). In the month in which you reach FRA and thereafter, the earnings test doesn't apply to your income, and there’s no limit on your earnings.
The age at which you're eligible for your full monthly benefits, also known as the primary insurance amount (PIA). The Social Security Administration sometimes refers to full retirement age as "normal retirement age" (NRA).
The temporary reduction in benefits if you work while receiving benefits before you reach full retirement age (FRA). In the month in which you reach FRA and thereafter, the earnings test doesn't apply to your income, and there’s no limit on your earnings.
The age at which you're eligible for your full monthly benefits, also known as the primary insurance amount (PIA). The Social Security Administration sometimes refers to full retirement age as "normal retirement age" (NRA).
A type of account created by the IRS that offers tax benefits when you use it to save for retirement.
A type of employer-sponsored retirement plan that allows employees to contribute pre-tax dollars by deferring salary. Many plans offer a variety of investment options, and employers often match a percentage of employee contributions.
An additional amount that taxpayers age 50 or older can invest for retirement on a tax-deferred basis.
Delaying the payment of income taxes on earnings generated in an investment account. For example, if you have a traditional IRA, you don't pay income taxes on the interest, dividends, or capital gains accumulating in the account until you begin making withdrawals.
The age at which you're eligible for your full monthly benefits, also known as the primary insurance amount (PIA). The Social Security Administration sometimes refers to full retirement age as "normal retirement age" (NRA).
If you collect Social Security benefits between ages 62 and your full retirement age (FRA) (66 to 67 depending on your birth year), your income is subject to an earnings test. If you earn too much, your benefits will be temporarily reduced—but not lost.
The earnings test still applies, but the rules are a little different in the calendar year you reach full retirement age (FRA).
You keep all your benefits, regardless of how much you earn. In fact, working once you reach full retirement age (FRA) can have these advantages:
Higher benefits. You can add to your earnings record, potentially resulting in higher monthly benefits when you claim Social Security.
A boost to your retirement accounts. You can continue to contribute to your IRA and 401(k) including catch-up contributions.
Tax-deferred growth. Continuing to contribute to your retirement accounts gives them the opportunity to grow tax-deferred.
Wages, bonuses, commissions, and vacation pay from a job in the year they're earned, not paid. For example, bonuses may be earned in one year but paid the following year.
Net earnings from self-employment when they're paid, not earned—unless they're paid the year after you become entitled to Social Security and earned before you became entitled.
Contributions to a pension or retirement plan if that amount is included in your gross wages.
If you retire before reaching full retirement age (FRA), and you've already earned more than the annual earnings limit, there's a special rule that applies for that year.
It allows you to receive a full Social Security check for each whole month the Social Security Administration considers you to be retired, regardless of your yearly earnings.
You're considered retired if:
You're younger than FRA the entire year and your monthly earnings in retirement fall within a certain range ($1,470 or less in 2019) and you didn't perform substantial services in self-employment.
You reach FRA in the year you retire and your monthly earnings in retirement fall within a certain range ($3,910 or less in 2019) and you didn't perform substantial services in self-employment.
See how it works: Special rule for the year you retire
Joe is 64, retires in October, and has earned $45,000 so far for the year. He then takes a part-time job, earning $500 in November and December.
Although his annual earnings are well over the annual limit of $17,640, he'll still get a full Social Security check for the last 2 months of the year. Why?
That's because his monthly earnings of $500 fall within the limit for retirees younger than FRA—$1,470 or less.
But if Joe were to earn more than the monthly limit in either November or December, he wouldn't receive a benefit for that month. Starting in the next year, only the annual limit will apply.
What if Joe were self-employed? The Social Security Administration would consider how much work he did in his business to determine his retirement status (more than 45 hours a month to a business or between 15 and 45 hours to a business in a highly skilled occupation).
The age at which you're eligible for your full monthly benefits, also known as the primary insurance amount (PIA). The Social Security Administration sometimes refers to full retirement age as "normal retirement age" (NRA).
Income you can receive on an investment such as a bond. The bond's interest rate is specified when it's issued.
An arrangement under which an employer—and sometimes the employee—makes payments toward retirement, disability, or death benefits for employees who meet certain criteria. Types of pension plans include defined benefit plans, defined contribution plans, employee stock ownership plans, money purchase plans, profit-sharing plans, stock bonus plans, thrift plans, and target benefit plans.
A financial product typically used by investors to save tax-deferred for retirement or to generate regular income payments in retirement.
The difference between the sale price of an asset—such as a mutual fund, stock, or bond—and the original cost of the asset.
GET YOUR SOCIAL SECURITY ESTIMATES
The SSA website provides estimates for how much you'll collect if you start receiving benefits at age 62, your full retirement age (FRA) (between 66 and 67), and age 70.
The age at which you're eligible for your full monthly benefits, also known as the primary insurance amount (PIA). The Social Security Administration sometimes refers to full retirement age as "normal retirement age" (NRA).
If you're struggling with making your best Social Security decision, we can help. You'll also get a custom financial plan, ongoing portfolio management, investment coaching, and real-time goal tracking—all at a low cost.
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