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               Distribution Adjustments Based on the Family Maximum Benefit

In some situations the number of dependents claiming benefits on an earner’s record exceeds the Family Maximum Benefit (FMB) amount. For example, in the table above the earner’s full benefit amount is $300.60 and the FMB is $535.10. Therefore the earner’s dependents will have to divide $234.50 evenly between themselves. Note: The ex-spouse is not included in the FMB calculation and receives 50 percent of the earner’s benefit ($150.30).

The table above  illustrates how the earner’s benefit is not reduced due to others claiming benefits on his or her work record. The second column shows the initial entitlement of each family member. The third column shows the redistribution of benefits due to the Family Maximum Benefit Calculation. The fourth column shows the readjustment when benefits are not paid to one child. The last column illustrates the readjustment when benefits are not paid to two children.

SOURCE: Social Security Administration (www.ssa.gov), 2012.

The Amount You Can Earn While Claiming Social Security Benefits Depends on Your Age

Your earnings in (and after) the month you reach Full Retirement Age (FRA) as defined by the Social Security Administration (SSA) at www.ssa.gov/pubs/ageincrease.htm ) will not affect your Social Security benefits. However, your benefit is reduced if your earnings exceed certain limits for the months before you reach your full retirement age.

In 2013 if you are under FRA for the entire year:

• You can earn $ 15,120 gross wages or net self-employment a year and not lose any benefits in 2013.
• The SSA will deduct $1 in benefits for every $2 earned above 15,120.

If you reach full retirement age in 2013:

• You can earn $40,080 gross wages or net self-employment prior to the month you reach full retirement age and not lose any benefits in 2013.
• The SSA will deduct $1 in benefits for every $3 earned above $40,080.

The same earnings limits apply to a spouse or child who works and receives benefits on your record. You should report earnings to the SSA for any months and years prior to FRA. If you are uncertain about how this applies to your personal situation use the retirement Earnings Test Calculator located at www.ssa.gov/OACT/COLA/RTeffect.html .