The two limits, side by side
| Your situation in 2026 | Annual limit | Withholding over the limit |
|---|---|---|
| Under FRA all year | $24,480 | $1 per $2 over |
| Reaching FRA this year (months before your FRA month) | $65,160 | $1 per $3 over |
| From your FRA month on | No limit | None |
Source: ssa.gov, “Receiving Benefits While Working”. Only wages and self-employment earnings count: not pensions, withdrawals, interest, or investment income.
A worked example
Suppose you claim at 63 and earn $40,480 from a part-time job in 2026. That’s $16,000 over the $24,480 limit, so SSA withholds $8,000 of your benefits for the year, in practice by holding entire checks until the amount is covered, then resuming payments.
Why the held-back money isn’t lost
The earnings test is a deferral, not a tax. At your full retirement age, SSA recomputes your benefit as if you had claimed later by the number of months it fully withheld, permanently raising your check to return the money over time. Working can even raise your benefit a second way: each year’s earnings can replace a lower year in your top-35 record.
The practical takeaway: if you plan to keep working seriously before FRA, claiming early can mean checks you don’t actually receive. The Whenwise app models the earnings test against your own work plan. See what claiming at each age pays and how the numbers are computed.