Social Security question....

[patricia92243]

Would it not help tbe social security fund to let people who retire early be able to work all they want and NOT be penalized? If we wanted to work full-time - therefore paying taxes- should we not be allowed to do so without penalty.

As it is now, anything earned over $12k a year would result in a penalty of $1 loss of benefits for every $2 over the $12k limit.

Am I right or wrong in my thinking?

[tx_dem41]

1. Our weak economy, bleeding jobs....

HAS to have people 65 and over leaving the job market in droves, or there will be even less jobs available. Too much supply (of employees), not enough demand (job). Wages would then depress for everyone.

[patricia92243]

4. I'm saying NOT to wait til we are 65. I'm 61. If I retired next year,

I will penalized for NOT waiting til I'm 66. I would also be penalized for working and making over 12k.

Something is not right, but I'm not sure what.

[amazona]

2. er, if you're retired and collecting retirement, then you're not working

I'm afraid I don't get the argument that people should be allowed to collect early retirement from Social Security at age 62 AND continue to work without penalty. Retire and let someone else have the job, or else keep the job and continue making a lot more money than you would if you were retired. It isn't like we have lots and lots of jobs to go around. Good people are hurting for work. Fair is fair. I don't think it's right to expect to receive the same benefits as the early retiree who can NOT work.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[jody]

3. Isn't your proposal what we have today - collect SS, work, and pay taxes?

[patricia92243]

5. No. After full-retirement age - in my case 66 - THEN and only then can a

person work, pay taxes and NOT be penalized. Any working before that is heavily penalized. No work = no taxes paid.

[jody]

9. Your statement was not clear. You said "Would it not help

tbe social security fund to let people who retire early be able to work all they want and NOT be penalized?"

Obviously, someone can't retire and still work.

Perhaps you should have added conditions such as draw SS before 65 without being penalized for working just as someone over 65 works without being penalized for drawing SS.

The perception that someone over 65 drawing SS and working is somewhat misleading because they pay SS taxes on their earnings. That can be viewed as a penalty but it can also be offset if their SS entitlements are reassessed higher based on new earnings.

[patricia92243]

11. You are right. What I was trying to say is hazy. It is not alway easy to

put into writing what you mean. You said it for me - thanks.

[hansberrym]

6. The money has been taxed once already, it is not fair

to tax that same money again when returned as SS retirement benefits.

Some people do not need to work after age 62 or 65, so it is not an issue for them, but others do need the extra income/wages. They are of course taxed on the wages earned, but is is unfair to include their SS benefit as income on their income tax calculation.

[Toots]

10. How was that money taxed?

FDIC is taken out before withholding and is not taxed.

[FloridaPat]

7. This hits people with pensions. If your pension is more than $12000

you are penalized too.

[unblock]

8. sounds like ssa charges a 50% tax on work beyond 12k

if so, then they are saving more money by cutting back the benefits than they would by encouraging you to work and taxing the extra income.