From 24/7 Wall St. · David Beren · · 1m 20s
At 63 He'll Collect Social Security and Pull $90,000 From IRA
A 63-year-old can collect Social Security while withdrawing $90,000 yearly from IRA without earnings test impact.
In brief
A 63-year-old can collect Social Security while withdrawing $90,000 yearly from IRA without earnings test impact. A 63-year-old can collect Social Security benefits while withdrawing $90,000 annually from IRA without earnings test reductions. Originally reported by 24/7 Wall St..
Social Security Earnings Test Rule
The Social Security earnings test ignores IRA withdrawals but counts wages and self-employment income.
How the Earnings Test Works
For 2026, the test deducts $1 for every $2 earned above $24,480 for those under full retirement age.
IRA Withdrawals Are Excluded
The SSA does not count IRA distributions, 401(k) withdrawals, dividends, or capital gains in earnings calculations.
Full Retirement Age for 1960+ Births
For anyone born in 1960 or later, full retirement age is 67, so a 63-year-old stays under full retirement age.
$90,000 IRA Withdrawal Plan
A 63-year-old can draw $90,000 yearly from IRA while keeping Social Security benefits unchanged.
Tax Implications of IRA Withdrawals
The IRS taxes up to 85% of Social Security benefits if IRA withdrawals exceed $34,000 for single filers.
Permanent Benefit Reduction
Early Social Security claims reduce benefits permanently, but IRA withdrawals avoid earnings test reductions.
2026 Earnings Test Threshold
The earnings test limit for 2026 is $24,480 for those under full retirement age, rising to $65,160 at full retirement age.
The short version
A 63-year-old can collect Social Security benefits while withdrawing $90,000 annually from IRA without earnings test reductions.
