Accounting & Bookkeeping & Small Business Forum

[jenniejadin]

Can an individual collecting social security, not at full retirement age and thus subject to maximum wage limits, own a S-Corp and receive distributions over and above the wage limits?

[Richard Noot]

jenniejadin wrote: Can an individual collecting social security, not at full retirement age and thus subject to maximum wage limits, own a S-Corp and receive distributions over and above the wage limits?

yes. they have nothing to do with eachover

[dp1903]

I'm not familiar with rules about work and receiving benefits before retirement age. But, if you go over the income ceiling for your filing status, $25,000 or about for single person and $32,000 for married couple, more of your social security benefits will be taxed. There are no rules on how much you can make, just that the more you make up to a point the larger percentage of your social security benefits will be taxed.

[Richard Noot]

dp1903 wrote: I'm not familiar with rules about work and receiving benefits before retirement age. But, if you go over the income ceiling for your filing status, $25,000 or about for single person and $32,000 for married couple, more of your social security benefits will be taxed. There are no rules on how much you can make, just that the more you make up to a point the larger percentage of your social security benefits will be taxed. If you retire a year or more before your full retirement age you are limited to how much you can earn and still draw social security benefits. Foe 2008 this amount is approximately $13,600.00

This is a separate requirement than that discussed by dp1903 above.
If adjusted gross income is over $25000.00 and single or over $32,000.00
and married filing jointly anywhere from 50-85% of your social security benefits can be taxable

[dp1903]

Richard,

Quote: If you retire a year or more before your full retirement age you are limited to how much you can earn and still draw social security benefits. Foe 2008 this amount is approximately $13,600.00

What about after reaching retirement age? Can't you draw benefits then?

[Richard Noot]

dp1903 wrote: Richard,

Quote: If you retire a year or more before your full retirement age you are limited to how much you can earn and still draw social security benefits. Foe 2008 this amount is approximately $13,600.00

What about after reaching retirement age? Can't you draw benefits then? You can draw retirement benefits at anytime once you reach age 62. Your full retirement benefit can be taken once you reach your particular age requirement and even be postponed until age 70 if you so desire.

[dp1903]

I read up on this last night. For every two dollars earned in wages over the soc sec limit you sacrifice one dollar in soc sec. benefits. That's if you are drawing benefits before retirement age. Other retirement benefits received from other plans do not affect your soc sec. benefits during this time. For the year you reach retirement age the limit goes up in to the low $30,000 range.

However, the $25,000 for single person and $32,000 for married still applies, i.e. you earn more than that and some of your social security benefits will be taxed.

[Richard Noot]

dp1903 wrote: Richard,

Quote: If you retire a year or more before your full retirement age you are limited to how much you can earn and still draw social security benefits. Foe 2008 this amount is approximately $13,600.00

What about after reaching retirement age? Can't you draw benefits then?

I just found this in NATPs member site:

Year
Under Full Retirement Age
Year Individual Reaches Full Retirement Age
Full Retirement Age and Over

2008
$13,560
($1,130/mo)
$36,120
($3,010/mo)
Unlimited

2007
$12,960
($1,080/mo)
$34,440
($2,870/mo)
Unlimited

2006
$12,480
($1,040/mo)
$33,240
($2,770/mo)
Unlimited

2005
$12,000
($1,000/mo)
$31,800
($2,650/mo)
Unlimited

2004
$11,640
($970/mo)
$31,080
($2,590/mo)
Unlimited

2003
$11,520
($960/mo)
$30,720
($2,560/mo)
Unlimited

2002
$11,280
($940/mo)
$30,000
($2,500/mo)
Unlimited

2001
$10,680
($890/mo)
$25,000
($2,084/mo)
Unlimited

2000
$10,080
($840/mo)
$17,000
($1,487/mo)
Unlimited

1999
$9,600
($800/mo)
$15,500
($1,292/mo)
Unlimited

1998
$9,120
($760/mo)
$14,500
(1,209/mo)
Unlimited

1997
$8,640
($720/mo)
$13,500
($1,125/mo)
Unlimited

1996
$8,280
($690/mo)
$12,500
($1041.67/mo)
Unlimited

1995
$8,160
($680/mo)
$11,280
($940/mo)
Unlimited

1994
$8,040
($670/mo)
$11,160
($930/mo)
Unlimited

1993
$7,680
($640/mo)
$10,560
($880/mo)
Unlimited

1992
$7,440
($620/mo)
$10,200
($850/mo)
Unlimited

1991
$7,080
($590/mo)
$9,720
($810/mo)
Unlimited

1990
$6,840
($570/mo)
$9,360
($780/mo)
Unlimited

1989
$6,480
($540/mo)
$8,880
($740/mo)
Unlimited

1988
$6,120
($510/mo)
$8,400
($700/mo)
Unlimited

1987
$6,000
$500/mo)
$8,160
($680/mo)
Unlimited