Scott, Murphy Introduce Bill to End Social Security Penalty Above $24,480

1 articles · Updated · The Motley Fool · Aug 22

H.R. 8344 would let Social Security recipients who claim before full retirement age keep full benefits even if they continue working, removing the current earnings test.
Under 2026 rules, beneficiaries lose $1 in annual benefits for every $2 earned above $24,480 before reaching full retirement age; from next year, that age is 67 for everyone.
The proposal is not law and may face resistance from critics who argue faster benefit payouts could further strain Social Security's trust fund.
Supporters argue the change is largely actuarially neutral because lost benefits are later credited through higher monthly payments, while continued FICA-taxed work also feeds money back into the system.
If enacted, the bill would ease a long-running tradeoff for older Americans between early retirement benefits and continued work, with possible ripple effects on labor-force participation.