I reach my FRA in December, 2022. Can I begin SS benefits in January, 2022 since it is the year of my FRA? I will be reducing my work hours and plan to use my SS benefit to make up some of the shortfall. I will make over the yearly limit. If I make 27k over the limit during that year will my SS benefit be reduced ~9,000? Do you receive reduced benefits monthly or do they not send a check until that 9,000 is paid off? Thanks!

Hi. If you'll reach full retirement age (FRA) in December 2022 and if you apply for your benefits effective with January of that year, payment of your benefits for months prior to December could be subject to full or partial withholding depending on how much you earn. The Social Security earnings test exempt amounts for 2022 won't be known until later this year, but the exempt amount of earnings for people reaching FRA in 2021 is $50,520. People earning more than that amount in the months prior to the month they reach FRA have $1 of their benefits withheld for each $3 they earn in excess of $50,520.

If you do earn more than the exempt amount, Social Security would withhold your entire monthly benefit payment for as many months as it takes to withhold the necessary amount.

Furthermore, if you start collecting Social Security retirement benefits 11 months prior to the month you reach FRA your monthly benefit rate will be roughly 6.1% lower than the rate you'd be paid if you started drawing at FRA instead. Before deciding when to apply for your benefits, you may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry