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Caution to those collecting early benefits: The Social Security “Earnings Test” applies - Motley Fool
Probably the biggest cause of seniors receiving an “Overpayment Notice” from the Social Security Administration is a rule called the “Annual Earnings Test,” or “AET.” The AET affects those who claim Social Security prior to their full retirement age (FRA) and who continue to work, but exceed Social Security’s earnings limit for those collecting early benefits. The AET limit amount changes each year, but for 2026 it is $24,480. And, if your work earnings for the year exceed that amount, you will need to repay Social Security at the rate of $1 for every $2 you are over the limit. If you don’t have the cash to refund that “penalty” immediately, Social Security will withhold your monthly SS benefit for as long as it takes for them to recover what is owed. As is normal for most of Social Security’s rules, there are nuances, all of which are explained in this Motley Fool article by Maurie Backman.
Social Security is a complex topic. If you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security or enrollment in Medicare, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of these programs. All questions are answered quickly, at no charge. Learn more about it here…
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