An Increase In Earnings Limits
- In 2018 the earnings limit for Social Security was $17,040
- In 2019 the earnings limit for Social Security is now $17,640
Many aren’t aware of the fact that it is possible to collect Social Security benefits while still working. However, all or part of a person’s benefits may be temporarily withheld. This, by law, is dependent on how much is being earned.
In 2019, an increase to those limits has been initiated.
2019 offers an increase up to $17,640 in earnings limitations. Beyond that, a dollar will be deducted from a persons payment for every two dollars that exceeds the limit. Compared to the annual limit in 2018 of $17,040, 2019 offers a $600 increase.
For anyone reaching full retirement age in 2019, up to $46,920 is eligible for un-reduced Social Security benefits.
The simple formula for calculating Social Security reductions from surpassing the earnings limit is as follows: For every $3 earned over the 2019 limit, a person’s Social Security benefits will be reduced by $1. This will only apply to money earned in the months prior to hitting full retirement age.