Financial-tips

Financial Tips

Financial Tips

Test Your Social Security Knowledge
(Updated: 04/11/2017)

For individuals drawing social security benefits while continuing to work, what are the 2017 annual earnings limits for those (1) between age 62 and full retirement age and (2) in the year of full retirement age, respectively?

  1. $15,720; $41,880
  2. $16,920; $44,880
  3. $16,000; $43,500
  4. $16,220; $44,220

 

 

 

Answer: B.

From age 62 to full retirement age, you can earn up to $16,920 per year before your social security benefits are reduced. In the year that you reach full retirement age, you can earn up to $44,880 before your benefits are reduced.

 

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Fact vs. Fiction

We understand that it can be tricky navigating the world of personal finance. Everyone seems to have an opinion, and it can be hard to know what to believe. We created this series as a way to present and debunk some of the most common financial myths.

Fiction: Giving back always means giving to charity.

Fact: Gifting to family members can be just as rewarding, and it may also be an effective way to transfer wealth while reducing or avoiding taxes. Common strategies for gifting to family members include making an outright cash gift, paying college tuition or medical bills directly, and contributing to a 529 plan. These options let you give back while paring down your own estate and could be a smart investment on your part. Contributions to 529 plans grow tax-deferred, for example, and withdrawals for the beneficiary’s education are tax-free at the federal level (and usually at the state level, too).

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Last Updated: 04/18/2017