In 2024, the Social Security program will experience ongoing modifications due to the recently approved reform bill (HR-4583) by the House of Representatives. Nonetheless, there are still specific rules that will remain consistent.
Social Security rules that will remain consistent (Photo: Sackett & Associates)
8 Social Security Rules that Will Remain Consistent
According to Yahoo Finance, Social Security will face significant changes next year due to the reform bill introduced to the House of Representatives. However, eight rules will remain consistent in the year 2024.
Go Banking Rates provide the eight rules that will remain consistent in 2024:
Rule 1: The Impact of Claiming Benefits Before Full Retirement Age (FRA) on Payment Reduction
Retirees can claim benefits as early as 62 years old instead of waiting until they reach full retirement age, which is either 66 or 67, depending on the individual’s birth year. However, retiring early will reduce the benefits by as much as 30%.
Rule 2: Understanding Annual Earning Limitation When Earning Income Before FRA and Claiming Social Security Benefits
In 2023, Social Security beneficiaries who claim benefits and are below the Full Retirement Age (FRA) will have an annual earnings limit of $21,240. However, if beneficiaries reach FRA in 2023, the limit on their earnings will increase to $56,520.
If beneficiaries earn any amount above this limit, the SSA will deduct $1 from their benefit payments for every $2 earned over the annual limit.
Rule 3: Spousal Benefits are Replaced
According to SSA, the spousal benefits are replaced with survivor benefits after death. This means that when the beneficiaries’ spouse dies, spousal benefits, which are capped at 50%, are replaced with survivor benefits which are capped at 100%.
Rule 4: Delayed Retirement Credits for Social Security Benefits
The benefits of Social Security increase by a certain percentage each month if beneficiaries delay claiming past their FRA. However, these credits will stop once beneficiaries reach the age of 70.
Rule 5: Social Security Benefits are Taxable, SSA Says
According to SSA, beneficiaries of Social Security can only pay federal income taxes if the beneficiary has additional income from wages, interest, dividends, etc.
Rule 6: Beneficiaries Can Only Receive Ex-Spousal Benefits if They Have Been Married for 10 Years
Unmarried or divorced beneficiaries can receive ex-spousal at 62 if they have been married for 1o year or more. Moreover, if the beneficiary remarried, they cannot collect benefits unless the later marriage ended in an annulment, divorce, or death.
Rule 7: Spousal Can Only be Received if It’s Larger Than the Beneficiary
Beneficiaries can claim benefits based on their own work history or their spouse, however, it is noted that they cannot get both. Beneficiaries can only receive spousal benefits if it is larger than their benefit as spousal benefits are also capped at half of their spouse’s benefit at FRA.
Rule 8: Beneficiaries Can Claim Benefits Without Waiting Until Past 70
The SSA recommends that beneficiaries start claiming benefits at their FRA, as Social Security benefits will not increase if they wait until 70 to claim.
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