Social Security Benefits before Full Retirement Age

If you choose to sign up for social security before your full retirement age (FRA) which is age 66 for those born between 1943 and 1954, your benefit will be reduced if your earned income (wages and self employment income) exceed certain amounts. The amounts for 2013 are $15,120 for years prior to the year you reach FRA and $40,080 in the year you reach FRA. The earnings limit can change every year. There is no limit to what you can earn after the month you reach FRA. Benefits are reduced $1 for every $2 you earned over the $15,120 and $1 for every $3 earned over the $40,080. This is a good reason not to take social security before your FRA.