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2014 Social Security Updates

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Question:

 I understand that some of the numbers used to compute my Social Security benefit may have been updated for 2014. Is this the case, and, if so, what are the new amounts?

 Answer:

 Yes, the Social Security Administration (SSA) updates some of its numbers each year based on the Consumer Price Index. Below is a list of the major changes from a recent Social Security press release:
  • PIA increased by a 1.5% Cost-of-living adjustment (COLA)
  • Maximum PIA increased from $2,533 to $2,642
  • The first "bend point" in PIA calculations has increased from $791 to $816; the second has increased from $4,768 to $4,917
  • Earnings exempt from the earnings test for those under full retirement age (FRA) increased from $15,120 to $15,480
  • Maximum taxable earnings for Social Security increased from $113,700 to $117,000
  • Earnings for one quarter of coverage increased from $1,160 to $1,200
The press release also describes other 2014 changes. Each of the topics mentioned in this update have been covered in previous MinistryCPA posts; click on the "Social Security" topic on the blog's sidebar for more detailed coverage.
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