I took my Social Security benefits at 62. I went back to work full time making $75,000 a year at 66. Will my benefits increase or can I take the option of not paying into Social Security anymore? We walked our reader through the numbers.
I took benefits at 62, full retirement was 65, at 66 went back to work full time making $75,000 a year. Will my Social Security increase or can I take the option of not paying into Social Security anymore?Social Security retirement benefits are determined by taking an average of your highest 35 years of earnings, indexed for inflation. The reference year for indexing is your age 60 year.
This is only a typical example. In some cases where the new income is replacing a very significantly lower amount earlier in your earnings history or perhaps a year in which you had zero income, adding this new year’s income might have a more significant impact to your benefit. It should be noted that at no time will new years of earnings result in a reduction to your benefit calculation, unless you’re under full retirement age and the new earnings have triggered an earnings limit reduction.
The second part of your question asks if you can opt out of paying into Social Security. Unfortunately that’s not an option under today’s rules. If you have income from a W2 job or self-employment, regardless of your age or Social Security filing status, you are subject to Social Security and Medicare taxes on that income.
Readers, do you have a Social Security question? Email us at [email protected] and we may use your question in a future column.
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