How does the Annual Earnings Test apply to beneficiaries who have reached their FRA?

The Annual Earnings Test is a provision that affects how much a beneficiary can earn while receiving Social Security benefits. For individuals who have achieved their Full Retirement Age (FRA), the Annual Earnings Test no longer applies. Once a beneficiary reaches FRA, they can earn any amount without having their benefits reduced. This means that prior restrictions on earnings, which could lead to a reduction in benefits for those under FRA, are lifted.

Therefore, after reaching FRA, a beneficiary may work and earn income without any impact on their Social Security benefits. This aspect of the Social Security program is designed to provide greater flexibility and acknowledgment of the fact that many individuals wish to continue working or have other sources of income after they reach their full retirement age.