Earnings test after FRA—what actually changes once you reach Full Retirement Age? The big shift is simple: the earnings test ends in the month you hit FRA. You can work and earn any amount with no benefit reduction. If you claimed earlier and had months withheld under the earnings test, Social Security will recompute your benefit at FRA to credit those months back. Below, we explain how the rules work before, during, and after FRA—and how to coordinate timing with Medicare, taxes, and your broader retirement income plan.

What the Earnings Test Does After FRA

• No reductions apply starting with the month you reach FRA. Earn any amount; your check is not reduced by the earnings test.
• Recomputation at FRA: If benefits were withheld before FRA because you earned above the limit, SSA adjusts your benefit upward to credit back those months.
• Working can still boost your benefit: Each year, SSA may replace lower-earning years in your 35-year record with new higher earnings, raising your payment even after you start benefits.

Earnings Test Before FRA (Quick Refresher)

• Standard rule (before the calendar year you reach FRA): SSA withholds $1 of benefits for every $2 you earn above the annual limit (set by SSA and updated yearly).
• In the calendar year you reach FRA (up to the month you reach FRA): A higher limit applies and SSA withholds $1 for every $3 above that limit.
• Not lost forever: Withheld months are credited back at FRA via a benefit recomputation.

Earnings Test after FRA: Scenarios & Examples

• Example A (Claim early, keep working): You start at 64 and earn above the limit for two years. Some checks are withheld. At FRA, SSA recomputes your benefit to credit those months, permanently increasing your payment going forward.
• Example B (Wait until FRA): You delay until your FRA month. From that first payment, there’s no earnings test—you can work freely.
• Example C (Delay past FRA): You keep working and delay benefits to 70. You earn Delayed Retirement Credits (~8%/yr simple) and may also raise your 35-year earnings record.

Taxes, Medicare & Timing Considerations

• Taxes on benefits: Working can push more of your Social Security into taxable territory based on “combined income.” Smart coordination with withdrawals, annuity income, or Roth conversions may help manage brackets. See Lifetime Income and How Annuities Are Taxed.
• Medicare & HSAs: You can enroll in Medicare without filing for Social Security. If you want to keep contributing to an HSA, be careful—Part A can start retroactively when you file for Social Security. Learn more in How Medicare & Social Security Work Together.
• Survivor planning: Delaying the higher earner’s benefit can meaningfully increase a future survivor benefit.

Checklist: Optimizing Around the Earnings Test After FRA

• Past withholding? Confirm your recomputation at FRA and that your ongoing payment reflects credited months.
• Still working? Consider whether delaying to 70 for Delayed Retirement Credits improves lifetime and survivor outcomes.
• Update your record: Check your mySocialSecurity earnings history annually for accuracy.
• Coordinate taxes: Map wages, RMDs, annuity income, and Roth conversion windows to manage brackets and IRMAA.

FAQs: Earnings Test After FRA