The Hidden Tax on Working Retirees: A Threat to Financial Security Working after full retirement age (FRA) has long been touted as a straightforward way to supplement one's income in retirement.
However, beneath this simple narrative lies a complex web of tax implications that can erode the financial security retirees strive for.
Social Security benefits are subject to taxation when working after FRA, with up to 85% of these benefits potentially being clawed back by the government as ordinary income taxes.