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Will Social Security’s Earning Test Be Repealed? - 401(k) Specialist
A bill, “The Senior Citizens Freedom to Work Act,” has been introduced in Congress that would repeal the Retirement Earnings Test (RET). The RET currently limits Social Security benefits for recipients who have not yet reached their full retirement age (FRA) to earnings of up to $24,480 in 2026. If individuals earn more than this limit, Social Security withholds $1 in benefits for every $2 earned above the threshold.
Any payments you currently have withheld due to exceeding this limit are not permanently lost. When you reach your FRA, your benefit is recalculated as if you had taken it later. For example, if you miss 12 months of payments, your benefit will be recalculated as if you started your benefits a year later. However, you have to live long enough to recoup them.
This bill, if passed, would allow older Americans to continue working and receive Social Security benefits before their full retirement age (FRA) without any reduction in payments. It was presented during a hearing titled “Experience Matters: Seniors and the Workforce,” and Amanda Umpierrez has written an article discussing this bill, which you can read here …..
AMAC (Association of Mature American Citizens), our mother company, supports this bill through its Social Security Guarantee (SSG). Read AMAC’s SSG here …..
The AMAC Foundation updates the Social Security Report website five days a week with announcements of any Social Security changes. Stay tuned!
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.