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Working inretirement could reduce your Social Security benefits.

To make things even more confusing, there is another important rule you need to know concerning Social Security, earned income, and full retirement age (FRA). Here's how it works!

BEFORE YOU REACH FRA

You're allowed an employment income of $17,040 per year, or $1,420 per month (in 2018), without impacting your benefits. For every $2 you make over the limit, your benefits are reduced by $1. Only income earned after you start receiving benefits counts toward the annual limit, therefore depending on the month you start receiving benefits your limit could be less than $17,040. So, if you begin Social Security in July, your income earned prior to July doesn't impact your benefit amount and you can earn up to $1,420 a month or $8,520 through the end of the year, without impacting your benefits.

ONCE YOU REACH FRA

Your Social Security benefit amount is reduced by $1 for every $3 you earn over $45,360. Note, only income earned before the month you reach FRA counts toward the limit.

AFTER YOU REACH FRA

Beginning with the month you reach FRA, earnings no longer reduce your benefits.

As an example, let's say you started taking Social Security at age 63 while working part time and earning $30,000 a year


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