Changes were made to Social Security and Medicare benefits and premium calculations effective in 2024. Here is a review:
Social Security
- Social Security recipients will see a 3.2% hike in their benefits in 2024.
- Individuals who take their benefit before full retirement age (FRA) can make up to $22,320 in earned income before they lose any benefits. The year a person turns FRA he/she can make up to $59,520 before they reach their FRA without any withholdings. There is no earnings cap once a beneficiary turns FRA.
- The Social Security wage base went up to $168,600 in 2024, a $8,400 increase over the 2023 cap.
- The amount needed to qualify for coverage rose to $1,730 a quarter in 2023. So, earning $6,920 during 2024 will net the full four quarters of coverage. You need 40 quarters of coverage to qualify for Social Security retirement benefits.
Medicare
For most, the 2024 monthly Medicare Part B premiums will be $174.70.
Upper-income seniors will also pay more for Parts B and D coverage in 2024 if their modified adjusted gross income for 2022 exceeded $206,000 for joint filers or $103,000 for single people. Here, modified adjusted gross income (MAGI) is AGI plus any tax-exempt interest. For Part B, they pay the $174.70 basic monthly premium plus an Income Related Monthly Adjustment Amount (IRMAA). They will also owe a surcharge (IRMAA) on their monthly Part D premiums, which they pay for coverage of prescription drugs.
For questions regarding Social Security and Medicare, call 888-556-0123.