| This is an archival or historical document and may not reflect current policies or procedures | |
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2003 through the third quarter of 2004, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.7 percent COLA for 2005. Other important 2005 Social Security information is as follows: |
| Tax Rate | 2004 |
2005 |
|---|---|---|
| Employee |
7.65% |
7.65% |
| Self-Employed |
15.30% |
15.30% |
NOTE:
The 7.65% tax rate is the combined rate for Social Security and
Medicare. The Social Security portion (OASDI) is 6.20% on earnings
up to the applicable taxable maximum amount (see below). The Medicare
portion (HI) is 1.45% on all earnings. |
||
| Maximum Earnings Taxable: | 2004 |
2005 |
|---|---|---|
| Social
Security (OASDI only) |
$87,900 |
$90,000 |
| Medicare (HI only) |
No
Limit |
|
| Quarter of Coverage: | 2004 |
2005 |
|---|---|---|
| Earnings required |
$ 900 |
$ 920 |
| Retirement Earnings Test Exempt Amounts: | 2004 |
2005 |
|---|---|---|
| Under full retirement age NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
$11,640/yr. ($970/mo.) |
$12,000/yr.
($1,000/mo.) |
| The year an individual reaches full retirement
age NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. |
$31,080/yr. ($2,590/mo.) |
$31,800/yr. ($2,650/mo.) |
| There is no limit on earnings beginning the month an individual attains full retirement age (65 and 4 months for retirees born in 1939; 65 and 6 months for those born in 1940). | ||
| Social Security Disability Thresholds: | 2004 |
2005 |
|
|---|---|---|---|
| Substantial
Gainful Activity (SGA) |
Non-Blind |
$ 810/mo. |
$ 830/mo. |
| Blind | $1,350/mo. |
$1,380/mo. |
|
| Trial Work Period
(TWP) |
$
580/mo. |
$
590/mo. |
|
| Maximum Social Security Benefit: Worker Retiring at Full Retirement Age in |
2004 |
2005 |
|---|---|---|
| NOTE: For retirees born in
1939, full retirement age is 65 and 4 months; for those born in
1940, it is 65 and 6 months. Full retirement age will gradually
increase to age 67 for those born in 1960 and later. |
$1,825/mo. (Age 65 and 4 months) |
$1,939/mo. (Age 65 and 6 months) |
| SSI Federal Payment Standard: | 2004 |
2005 |
|---|---|---|
| Individual |
$ 564/mo. |
$ 579/mo. |
| Couple |
$ 846/mo. |
$ 869/mo. |
| SSI Resources Limits: | 2004 |
2005 |
|---|---|---|
| Individual |
$2,000 |
$2,000 |
| Couple |
$3,000 |
$3,000 |
| SSI Student Exclusion Limits: | 2004 |
2005 |
|---|---|---|
| Monthly Limit |
$1,370 |
$1,410 |
| Annual Limit |
$5,520 |
$5,670 |
| Estimated Average Monthly Social Security Benefits Payable in January 2005: | Before 2.7% COLA |
After 2.7% COLA |
|---|---|---|
| All Retired Workers |
$ 930 |
$ 955 |
| Aged Couple, Both Receiving
Benefits |
$1,532 |
$1,574 |
| Widowed Mother and Two Children |
$1,927 |
$1,979 |
| Aged Widow(er) Alone |
$ 896 |
$ 920 |
| Disabled Worker, Spouse and One or More Children |
$1,458 |
$1,497 |
| All Disabled Workers |
$ 871 |
$ 895 |
SSA Press Office 440 Altmeyer Bldg. 6401 Security Blvd.
Baltimore, MD 21235
410-965-8904 FAX 410-966-9973
