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BenefitsLink > Q&A Columns >

Stop, Look & Listen: Railroad Retirement Benefits Q&A

Answers are provided by Robert S. Kaufman

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.


Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.


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