|
Automatic Increases
Determinations:
Lower exempt amount
Higher exempt amount
Exempt amounts in 1975-99
Indexed program amounts
How
Work Affects Your Benefits
|
How the earnings test works
The retirement earnings test applies only to people below
normal retirement age (NRA),
which ranges from age 65 to 67 depending on year of
birth. Social Security withholds benefits if your earnings exceed
a certain level, called a retirement earnings test exempt amount,
and if you are under your NRA. One of two different exempt
amounts apply, depending on the year you attain your NRA.
These exempt amounts generally increase annually with increases in
the national average wage index.
Exempt Amounts for 2009
We determine the exempt amounts using procedures
defined in the Social Security Act. For people attaining NRA
after 2009, the annual exempt amount in 2009 is
$14,160. For people attaining
NRA in 2009, the annual exempt amount is
$37,680.
This higher exempt amount applies only to earnings made in months prior to
the month of NRA attainment.
Benefits Withheld When Earnings Exceed Exempt Amounts
We withhold $1 in benefits for every $2 of
earnings in excess of the lower exempt amount. We withhold $1 in
benefits for every $3 of earnings in excess of the higher exempt amount.
Earnings in or after the month you reach NRA do not count toward the retirement test.
Annual Retirement Earnings Test Exempt Amounts
|
| Year |
Lower amount 1 |
Higher amount 2 |
| 2000 |
$10,080 |
$17,000 |
| 2001 |
10,680 |
25,000 |
| 2002 |
11,280 |
30,000 |
| 2003 |
11,520 |
30,720 |
| 2004 |
11,640 |
31,080 |
| 2005 |
12,000 |
31,800 |
| 2006 |
12,480 |
33,240 |
| 2007 |
12,960 |
34,440 |
| 2008 |
13,560 |
36,120 |
| 2009 |
14,160 |
37,680 |
| 1 Applies in years before
the year of attaining NRA. |
| 2 Applies in the year of attaining NRA,
for months prior to such attainment. |
From 1983-1999 the higher exempt amounts applied at ages 65 through 69,
as shown in our historical series of exempt
amounts. |
www.socialsecurity.gov
