If you are still working and receiving Social Security benefits before you reach your retirement age, the retirement earnings test may come as a surprise to you.

The primary issue with the earnings test is that a lot of people don't know it.

They are not aware until the point where they get their first notice of overpayment.

If you have earnings that are higher than the threshold that Social Security uses to determine whether or not you are entitled to benefits ...

...and you have not yet reached your full retirement age, then your benefits will be stopped.

Per the Social Security Administration, a person is eligible for a deduction of either of these two amounts...

A smaller amount over the years leading up to your full retirement age and a greater amount during the year that you reach your full retirement.

According to experts, and here's what you need to understand about the retirement earnings test.

According to Joe Elsasser, three variants of the earnings test may be applicable for you.

Before reaching full retirement age, an annual earnings test is required.

If you're 62 or older and earn more than $19,560 in 2022, the SSA will withhold $1 in payments for every $2. this is also called a lower exempt amount.

At full retirement age, you receive 100% of your Social Security pension.

An annual income test will require in the year you attain full retirement age.

For every $3 beyond the threshold, $1 in benefits is deducted. This amount is $51,960 in 2022.

The monthly earnings test can only be utilized for a single year, which is often the year in which you cease or reduce employment.

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