If you’re still working – either in the middle of your career or approaching retirement – you may not be inclined to notice changes to Social Security. However, they can certainly have a tremendous impact on you, not just in the future but in THIS year.
A few big changes that are taking place in 2019 include –
Income Subject to Social Security Tax - Only a certain portion of your earnings is subject to Social Security Taxes. If you have a compensation package above that limit, you will notice that your paycheck gets bigger once that threshold is reached. In 2019, the limit increased to $132,900.
Earnings Limit – If you collect Social Security and continue to work, you are limited by how much you can earn without temporarily reducing your Social Security check. In 2019 the limit increased to $17,640 for work before your full retirement year.
Full retirement age – If you turned 62 in 2019, your full retirement age is 66 and 6 months, a two month increase from 2018.
Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. The Social Security Administration alone makes all final determinations on your eligibility for benefits and the benefit amounts. You should consult with your local Social Security Office before acting upon any information provided. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. No strategy assures success or protects against loss.