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Details Regarding Social Security Changes for 2018

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Details Regarding Social Security Changes for 2018

Here is a bulleted list including details regarding Social Security changes for 2018. Enjoy!
 

  • In 2018, Social Security recipients will receive a 2% increase in their monthly checks which is the largest increase since 2012.
  • The maximum benefit for a single worker receiving benefits at full retirement age will be increased to $2,788 from $2687.
  • If you turned 62 in 2017, your full retirement age is 66 and two months. If you turn 62 in 2018, your full retirement age increases to 66 and four months. Social Security full retirement age continues to increase two months per year until reaching the goal of age 67. For anyone born in 1960 or later, 67 will be your full retirement age.
  • If you are still working and receiving social security benefits there are limitations on how much you can earn without having your benefits reduced. If you are less than your full retirement age, you can earn $17,040 in 2018, up from $16,920 in 2017. During the year you reach your full retirement age, you can earn up to $45,360 with any reduction.  Once you reach full retirement age there is no limitation on earnings
  • The limits on whether your social security is taxable remain the same in 2018. If married, you can have provisional income up to $32,000 with no amount subject to taxes. From $32,000 to $44,000 of provisional income, up to 50% of your social security is subject to tax — $44,000 and greater of provisional income, up to 85% of your social security is subject to tax.  Keep in mind that provisional income is Adjusted Gross Income (without Social Security) plus tax exempt interest plus 50% of Social Security Benefits.
     

Related: 7 Biggest Concerns Clients Have When Preparing for Retirement

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