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Got $102,300?

By John Grobe

Friday, August 17, 2007

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John Grobe is a retired federal employee with over 25 years of experience in federal human resources and President of Federal Career Experts, a training and consulting firm that specializes in federal employee retirement and career transition issues.

Got $102,300?  If you do, and if you're a FERS or CSRS Offset employee, that will be next year's Social Security earnings ceiling. 

That is, this is the amount out of which the 6.2% Social Security tax will be taken.  It increased $4,800 over this years limit.  If you are fortunate enough to make more than that amount, you'll get the equivalent of a 6.2% raise from the time you hit the limit until the end of the year.

In other SS/Medicare related news, the Medicare trustees estimated that the Medicare Part B premium would go up to $96.40 next year, from $93.50 this year.  I suppose we should be thankful that the Part B premium is indexed to regular inflation, rather than health care inflation.

© 2009 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

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Readers' Comments

  • Hi... I am in the offset program and when I reach the social security limit, that money is applied to my CSRS....
    Posted: September 20, 2007 9:54 AM
  • I think RET DOD is making the point that your actual salary goes down because of this change in the social security tax--you pay more tax because the threshold has been raised and you therefore have less take home that year. Whereas the article reads as if employees will take more money home becaus...
    Posted: August 20, 2007 12:59 PM
  • I find this article very misleading. When it states that you'll get the equivalent of a 6.2% raise from the time you reach the limit until the end of the year, what is so significant about that? In other words, isn't that the case every year? Once the 6.2% of the ceiling is met you are then takin...
    Posted: August 19, 2007 7:38 AM

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