Trouble Understanding

Stan,

I salute you for understanding this stuff. Thanks for the response. I'm still having some trouble understanding it, but I know if I read it enough times it has got to click. Sometimes I'm a little slow on the uptake.

Tony from Tennessee

Tony,

Thanks. I know how you feel. It always takes time for new and complex concepts to sink in. Once you get the big picture and the basic concepts down, it all comes together. In your question you spoke about getting the "penalty" back. The "penalty" is actually 2 things: the reduction factor used to calculate the benefit amount for months before Full Retirement Age (FRA), and then the witholding of benefits required to satisfy the annual earnings test applicable to those under FRA. The witheld benefits are not paid back, but the reduction factor is re-adjusted at FRA.

Hope this helps a bit. You are not alone in having some difficulty in grasping all this right away. Feel free to send follow up questions if something is unclear.