How to calculate value of “lag year” earnings when they replace years of Zero earnings?
Can anyone help check the Social Security Administration’s reckoning of a monthly benefit after the addition of “lag year” earnings that replaced a year of Zero earnings? Specifically, the SSA boosted my benefit by a mere $6 a month as a credit for 2023 taxed Social Security earnings of $18,160. The Primary Insurance Amount = $2,652.10. Thanks in advance for any advice or referrals to experts.
Permalink Submitted by Alan - IRA critic on Mon, 2024-06-10 22:13
This is not a SS forum but adding 18,160 of earnings/420 months amount to an AIME increase of $43. If you are past the second bend point your benefit increases by just 15% of that $43 which is 6.45. If you fell between the first and second bend points, the increase would be near $14 a month. Both of these figures would be adjusted lower if your started benefits before your normal retirement age.
Permalink Submitted by Jim Wolf on Tue, 2024-06-11 22:45
Super-duper thanks for an ultra-clear reply. Please accept my apologies for having posted my question in a spot it didn’t belong.