Ok so SS has a salary cap for those folks below FRA (Full Retirement Age) which is 67 for those born in 1960 or later. For those born before 1960 your FRA is 2 months less than 67 for every year that you were born before.
I retired early, but didn't sign up for SS until I was 62, After a few years I had to resume working so we didn't have to live in a ghetto apt. For 2022 I went over the salary cap by 8k, so they took 4K back starting in Sept. of 2023. For 2023 I went way over the salary cap by about 23,600 bucks, and I was thinking that in Sept. of 2024 they would just take my check until they got their money back starting in Sept.
That's not what they did, they suspended my SS so that the amount I owe back is not going down, not only that, but they now are estimating that I will earn the same again this year. Most likely I will... So 11,800 I owe back X 2 23,600. I only currently receive 1256 a month (Having paid in for 45 years) Not accounting for raises I owe 18.7 Months worth of SS back to them.
There are multiple options including getting some or all forgiven if you can prove hardship, and I can't, my wife works. Another option is to pay the money back. If I don't then when I reach FRA they will resume my SS and take back the money starting then, I'd be 68 and some months before I get the money again. The rules are the rules and I don't intend on trying for debt forgiveness.
Instead of paying for both years, I'm considering liquidating some of my real money (Cough) and paying back for 2023, then waiting to see if any changes come along after Trump gets back in the WH, and seeing how I'm affected.
Even if I liquidate enough to pay for both years, I still have some left. Also paying back and / or suspension increases how much you receive at FRA, so there's no penalty for retiring early as long as you live to about 80.
What a scam, they deduct SS from my pay, and since I work my SS is 85% income taxable, plus this whole salary cap thing. The salary cap goes away at FRA and is only on earned wages not on investment profits.
I'm earning 17 bucks an hour and the cap for this year is around 22100 So even without overtime I'm 12 K over the cap... I'm a security guard, a low paying field. LOL I like the fact that you get more SS at FRA for the clawback and suspensions, but its gambling right?
IMHO SS should not be taxed and there should be no salary cap. Biden's Admin changed the rules to screw people, gives them more money to feed the "New Arrivals"
I am sorry you are finding yourself in such a situation.
A scam it is, indeed, but that conclusion does not solve your real question. From what I read I deduce that your question is: how to solve this.
It seems you are contemplating to use your savings to extinguish a "debt", which, in itself is a noble pursuit.
As you will probably have gathered by now, that is not how the system works. What you seem to be looking for is a stream of income to cover it over time.
There are ways to it, but it requires you to spent some time comprehending that system.
disclaimer:
I do not endorse it, nor give investment advice. You should do your own due diligence. You have to do your own due diligence! The sole reason for giving this information is pointers, so you can make your own way.
You could, for instance, consider going into mining.
Gold/ Silver Miners. There is a revaluation in the works and this will affect miners big time. This leads to an increase in equity, which you can use to cover some of the exposure you have with SS.
Crypto. This works the same way. There are systems where you buy a mining contract, and the proceeds, being the coins themselves, or a yield, go into your self-custody wallet if paid in crypto, or to your bank-account/payment card. Earnings start at the moment of buying the contract, usually paid out per day. Of course, such contracts have a duration. So, be aware to what you commit yourself.
The downside to this is that you have to figure out a way to leverage those coins.
One way to do so would be with Bybit. That way, you can use a normal payment card to settle some bills. You could even pay bills directly from your account there, which connects to your self custody wallet.
Or, you may use the coins to buy payment gift cards: Dining out or sports gear, stuff you need to repair your stuff, goods from amazon, flowers, you name it. What you normally would spent from your fiat account, now you can spent from your crypto account.
That said, of course, you can keep the coins as a saving, and slowly move out of fiat savings, while paying of the debt with your fiat remainder. In effect, you are simply exchanging one type of savings for another. The only difference is, you are no longer saving in FEDERAL RESERVE NOTES. You can take advantage of the growth of the crypto system, and leave the scam by inflation behind.
The reason why this crypto mining is advantageous is because it directly translates into buying power. Equity, like stocks in mining, does not have that direct buying power. And, with equity, you are running third party and fourth party risk. On top, if you do not take care, you may find yourself being the economical owner, instead of the full owner.
There are ways to buy crypto each month, and through cost averaging, build a portfolio that support you.
Or, you could buy crypto coins and provide liquidity to a pool. It requires you to comprehend the coin you are thusly supporting, and knowledge when to move out and into a coin.
In addition to acquiring crypto coins or not, you could go with Kinesis. There you can save in fiat, use their crypto to pay for amenities and save what you need in gold and silver, and if needs be, take delivery of the physical.
Having gold and silver there, is advantageous, as you will receive a reward for it. This way, the security of Gold and Silver will make a small yield, in addition to the price increases coming.
WARNING:
IF you decide to go the crypto route, after having done your own due diligence, only go for self-custody and decentralized exchanges (DEX). You may try BISQ, HAVENO, HODL HODL to exchange some for fiat or vice versa if needs be.
CEX, or centralized exchanges are simply another form of money scammers, expensive, and they are trying to "protect" you. It happens quite often, they hold a transaction and not return the money until you have satisfied their out of the blue red flag system. And you would not be talking to an authorized customer service rep, but some AI, droning on about the requirement of your compliance.
potential.
From personal experience I can say, it can be very advantageous. If you do it right, you could potentially change 5000 into 50.000 over the course of a year. No contest. Looking back, I should have done it earlier. As Lou Rawls once sang: We always wind up on the outside looking in: if I had just....
to ponder
Why do you think Matt Gaetz has introduced a bill to allow payment of taxes in BTC? Why do you think Trump made move positive for BTC?
Is it wise to throw away your advantage and into the deep black pits of a scam?
So, I would encourage you to think on it, and on how to best leverage the opportunity given. .
I paid off a lot of debt over the last year that was all at 0 APR which I bought Metal with. I still have a small amount of that debt left to go, and a new 0 APR debt for Dental work. I'm focused on paying that off. I can sell metal to pay the SS back, but am loathe to do so. I don't see interest being charged there ether, so I have time to decide. If I pay the portion from my 2023 earnings will they resume my SS until the IRS sends them my 2024 earnings? If they do I will save that money towards the 2024 Balance I'll owe.
I don't have money to save since I'm under pressure to pay my 0 APR debt off before interest starts, and I don't understand Bitcoin and the like very well.