Social Security Retirement Earnings Test: How Earnings Affect Benefits

Social Security Retirement Earnings Test: How Earnings Affect Benefits

Under the Social Security Retirement Earnings Test (RET), the monthly benefit of a Social Security beneficiary who is below full retirement age (FRA) is reduced if he or she has earnings that exceed an annual threshold. In 2010, a beneficiary who is below FRA and will not attain FRA during the year is subject to a reduction in benefits for each of earnings above ,160. A beneficiary who will attain FRA in 2010 is subject to a reduction in benefits for each of earnings above ,680

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