Social security income penalty

The retirement earnings test applies only to people below normal retirement age (NRA). 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 — a lower amount in years before the year you attain NRA and a higher amount in the year you attain NRA. These exempt amounts generally increase annually with increases in the national average wage index—Read more at SSA.gov. “Exempt Amounts Under the Earnings Test.”