Working While Collecting Early Social Security Can Hurt You
Many – in fact a majority – of Social Security beneficiaries claim their benefits at age 62, before their full retirement age, or “FRA.” But doing so without fully understanding the consequences of claiming early can come back to haunt you, especially if you continue to work after starting Social Security benefits before your FRA. Many beneficiaries aren’t aware that Social Security has an “earnings test” which applies to anyone who collects benefits before they reach their FRA, and exceeding a certain earnings limit causes Social Security to take back benefits. Also, your Social Security may be taxable if your “provisional” income exceeds certain levels, so understanding how benefits are taxed is especially important to early retirees. All of this is explained in this Mooresville (NC) Tribune article by columnist Maurie Backman. Click here to read more.