Update: Social Security Earnings Limits

Update posted on July 31 2008 Back to Blog

Retirement Earnings Test Exempt Amounts for 2007 & 2008.

Under full retirement age NOTE: One dollar in benefits will be withheld for every two dollars in earnings above the limit. $12,960/yr. ($1,080/mo.) $13,560/yr. ($1,130/mo.)

The year an individual reaches full retirement age NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every three dollars in earnings above the limit. $34,440/yr. ($2,870/mo.) $36,120/yr. ($3,010/mo.)

There is no limit on earnings beginning the month an individual attains full retirement age (65 and 6 months for retirees born in 1940; 65 and 8 months for those born in 1941).

IRS Circular 230 Disclosure - As required by IRS rules, although this written communication may address certain tax issues, the issuer of this document did not intend nor write the advice to be used to avoid any penalty imposed by a taxing authority, nor may the user/recipient of this document use this document’s written tax advice for that purpose. Nor may it be used to promote, market or recommend to another party any transaction or matter addressed herein.