Lets Provide Some More Social Security Help
Courtesy of the Wall Street Journal Weekend Edition
More helpful information on our favorite topic the last couple of weeks.
WSJ Baby Boomer's Guide To Social Security
The most frequently asked question at the Social Security Administration"How much can I earn and still receive Social Security benefits?" Based on a survey of visits to the agency's Web site, more people -- 315,847 in the first six months of this year -- wanted the answer to that question than any other.
The question refers to the agency's "earnings test" and the apparent penalty for collecting a salary and Social Security at the same time. It works this way: If you are under your "full retirement age" (the age at which you qualify for full benefits) when you first receive Social Security payments, and if you have earned income, $1 in benefits will be deducted for each $2 you earn above the annual limit. In 2008, the limit is $13,560.
In the year you reach your full retirement age, the "penalty" shrinks: $1 in benefits is deducted for each $3 you earn above a higher limit, $36,120 in 2008. Then, starting with the month you reach your full retirement age, the deductions end.
Wise Owl