Ask Larry

If I Earn $12,000 In 2 Or 3 Months This Year Will I Be Penalized?

I plan to retire at 60 and collect SS widows benefits. I may want to work very part time. I understand the 2020 earnings limit is $18,240/yr which comes to $1,520/mo. If I earn only $12,000 but earn it in 2 or 3 months (vs. $1,000/mo spread over the full year) will I be penalized? In other words is there a "monthly limit" of what I can earn or is there only an annual limit?
Thank you!

Hi,

No. As long as your earnings for the calendar year of 2020 are below $18,240 you won't lose any of your benefits because of Social Security's earnings test. The monthly breakdown of your earnings is immaterial unless you earn more than calendar year exempt amount.

Best, Jerry

Category: 
Posted: 
Jan 11 2020 - 3:22pm
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.