Social Security’s “First Year” Rule: When you claim early and still work
Here at The AMAC Foundation, we often hear from folks who are vaguely aware that if they collect Social Security benefits early and continue to work, their benefits may be affected. The details of Social Security’s “Earnings Test” can be tricky, especially during the first year of collecting early benefits, where “early” is defined as anytime before one’s Social Security full retirement age. And Social Security’s so-called “first year rule” has surprised many a new recipient. Intended as a way to accommodate those who claim Social Security mid-year but have already earned more than allowed by the earnings test, the first year rule uses a monthly, rather than annual, earnings limit for the remainder of the calendar year in which a person starts benefits. All of this is explained in this Motley Fool article by Katie Brockman. Click here to read more.
Also, if you’re unsure about your individual situation under Social Security or have questions about your personal benefit entitlements, note that the AMAC Foundation provides an independent free-to-the-public Social Security Advisory service to help Americans navigate the complexities of this program. Learn more about it here…