Or you might of heard of suspension for one year
of mandatory IRA withdrawal in 2009.

I'd like to thank everyone for their prompt and relevant reply. My
language may have not been as clear as it should have been.

"jIM" <noreplysoccer[at]hotmail.com> wrote in message
news:18d57dd8-899d-494b-b609-98a8bd08ba6e[at]b38g2000prf.googlegroups.com...
- quote -

There is a reduction of your SS if you are not of full retirement age and
have more than a certain amount of FICA income. I believe there are two
levels of benefit reduction. The question was to this portion of the
regulation, rather than the tax implications.

Elizabeth Richardson

- quote -

edit- should read A PORTION of the SS is subject to tax (50% or 85%).

- quote -

I know of know "income penalty" for retiring early.

There are penalties for having too much income if you collect a SS
check.

If your income calculated as 50% of SS+other income is larger than
44k, then the SS portion of the income is subject to tax. It could be
up to 85% of the SS check is subject to tax, depending on your
situation.

For example:
42k of SS benefits= all benefits tax free
42k of SS benefits+$10k of income from retirement
accounts=21+10=31<44, you might owe taxes on the 10k, but the SS is
NOT taxed.
42k of SS benefits+30k of income from retirement
accounts=21+30=51k> 44k, so the whole 44k of SS is now subject to taxes
based on current tax law.

tscottme <scott.me.usenet[at]gmail.com> wrote:

- quote -

The penalty used to extend to age 70. There was a change, maybe five years ago,
that eliminated the penalty between full retirement age and 70. Perhaps that's
what they were talking about. -- Doug

On Dec 21, 5:34*pm, tscottme <scott.me.use...[at]gmail.com> wrote:
- quote -

Not unexpectedly, it's more complicated than that. Yes, your benefits
are reduced somewhat once you go over the limit prior to full
retirement age. However, once you *do* reach full retirement age,
those funds that you did not receive earlier will cause a
corresponding increase in your benefits received later. Additionally,
while you continue to work, you continue to pay FICA tax, which can
also increase your eventual benefit. Each person's situation is
different.

On Sun, 21 Dec 2008 18:34:40 -0600, tscottme
<scott.me.usenet[at]gmail.com> wrote:

- quote -

No changes here. Suggest you google on "social security earned income
limitation". For more,

http://www.ssa.gov/pubs/10069.html



-HW "Skip" Weldon
Columbia, SC

I've been trying to rapidly catch up on retirement info for various
reasons lately. It was my impression that of one retired before their
"full retirement age" there was an income limit from wages to be
considered. Looking around the Social Security web pages it appears
that if one retires between age 62 and the applicable full retirement
age of 66 the retiree starts to be penalized once he earns
approximately $14k.

Suddenly someone tells me a recent change in the law removes that
penalty.

Does anyone know what law that may be, the person telling me this
didn't know any more details. I'm skeptical that what I've described
in the first paragraph has been substantially changed. I found the
details on the SocSec web page tonight.

I'm trying to talk somone out of taking early retirement before FRA
just to make up a small shortfall in monthly income due to a job
change. If you have any relevant insight into this topic please
reply. I had expected to follow this topic more closely in a few
years, not now.