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Work Deductions After Retirement
(Posted November 10, 2014)
Question 1217: If I am at full retirement age and retire, but continue to work, will there be any deductions to my retirement?
Answer: For most Railroad Retirement beneficiaries, work deductions end when they reach their full retirement age. The only exception is Rail Workers and Spouses who continue to work for the same employer they worked for before retirement. In that case, there is a special work deduction applied to Tier 2 called the "Last Person Employment" deduction.
The "Last Person Employment" deduction will reduce the Tier 2 by $1 for every $2 in earnings from that employer. The reduction begins with the second dollar of earnings. The maximum reduction is 50% of the Tier 2. There is no exempt amount or age limit.
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