From 24/7 Wall St. · Gerelyn Terzo · · 1m 10s
Qualcomm Layoffs and Social Security Limits
Qualcomm's November layoffs could affect Social Security earnings limits for retirees receiving January bonuses.
In brief
Qualcomm's November layoffs could affect Social Security earnings limits for retirees receiving January bonuses. A 2026 bonus paid in January 2027 doesn't count against Social Security's $25,560 earnings limit for 2027. Originally reported by 24/7 Wall St..
Qualcomm Layoffs Start in November
Qualcomm's CEO Cristiano Amon plans job cuts after annual employee reviews, with notifications starting in November.
“performance-focused reduction”
Retiree's January Paycheck Concern
A 63-year-old engineer receives a January paycheck with a bonus, unused vacation, and severance, raising Social Security earnings questions.
Social Security Earnings Limit
Social Security's 2027 earnings limit for retirees is $25,560, with benefits withheld for every $2 over the limit.
“$25,560”
Earnings Test Rule
Social Security counts earnings when work is done, not when pay is received, so 2026 bonuses don't count against 2027 limits.
“counts when it’s earned rather than when it’s paid”
Severance Package Rules
Severance payments may qualify for exclusion from 2027 earnings limits if they relate to work completed in 2026.
“may be excluded from his 2027 earnings limit”
Tax Paperwork Complications
January wages may appear on 2027 W-2s, causing Social Security to initially count them against 2027 earnings limits.
“may show up on his 2027 W-2”
Fixing the Earnings Count
Retirees should ask payroll for itemized breakdowns and report payments to Social Security to avoid benefit reductions.
“help him show Social Security why money received in January shouldn’t count as earnings from a new job”
What it means
A 2026 bonus paid in January 2027 doesn't count against Social Security's $25,560 earnings limit for 2027.
