SSA Earnings Test, 2026
Claiming before full retirement age and still working? In 2026 the limit is $24,480, Social Security takes back $1 of benefit for every $2 above it. Then gives most of it back at retirement age. Here's the math.
Only wages count (net self-employment). Bonuses, pensions, IRA/401(k) withdrawals, investments, and Rental income don't count against the limit.
How the math works
- 2026 annual limit under FRA: $24,480, $1 of benefit is withheld per $2 over it. Monthly exempt amount: $2,040.
- Year you reach FRA: $65,160 counted only for the months before your FRA month, $1 withheld per $3 over it. Monthly exempt $5,430. No withholding for your FRA month onward.
- Monthly rule: for any month you're under FRA, SSA pays the full check only if that month's earnings are at or below the monthly exempt amount, otherwise that month's check can go to $0.
- The withheld money isn't lost: at FRA, SSA recomputes your benefit as if those months were not paid, raising your permanent monthly amount. It is a loan from your own future checks.
- Withholding caps out at the benefits payable for the year, SSA won't take more than it pays you.
What is the Social Security earnings limit in 2026?
$24,480 a year ($2,040 a month) if you're under full retirement age all year. In the year you reach full retirement age it's $65,160, applied only to the months before your birthday month, and the reduction is $1 per $3, not $1 per $2.
Do I lose the money Social Security withholds?
No. Months withheld under the earnings test are added back at full retirement age by recomputation, your ongoing monthly benefit goes up permanently. It's timing, not a fine.
Does the limit apply to my 401(k) withdrawal?
No. The test counts wages and net self-employment only. Pensions, IRA and 401(k) distributions, investment income, and RMDs don't reduce your check.