The Earnings Limit for Disability Retirement

If you’re 60 or older, there are no restrictions on the amount of money you can make while receiving disability retirement. If you’re under the age of 60,  you can receive income from work as well as disability retirement benefits. Still, your disability annuity will be terminated if the Office of Personnel Management (OPM) finds that you can make an income comparable to what you would have earned if you had kept working. 

For you to continue your disability retirement, the retirement legislation has established an earnings ceiling of 80%. You reach the 80% earnings threshold (or are “restored to earning capacity”) if, in any calendar year, your income wages and self-employment reach at least 80% of the current rate of basic pay for the post from which you retired. 

Any income from wages and self-employment received, as well as deferred income generated in the calendar year, is termed “earnings.” Any money received before retirement is not regarded as “earnings.”

Wage income includes any income earned while working for someone else (including overtime, vacation pay, etc.). Whether at home or abroad, your net profit from working or operating your firm is considered self-employment income. Net profit is the amount left after deducting company expenditures and before removing any personal expenses or exemptions allowed by the IRS. Deferred income is money earned but not received within the calendar year for which you are claiming income less than the 80% earnings threshold. 

If you are employed again by the federal government and your income is reduced by your annuity, the gross amount of your salary before the adjustment is recognized as “earnings” for the calendar year.

Gifts, insurance proceeds, pensions/annuities, Social Security benefits, unemployment compensation, and rents/royals that do not involve or result from personal services aren’t considered earnings. Other things not considered earnings include interest/dividends that do not result from your trade or business, money earned before retirement, inheritances, capital gains, prizes/awards, fellowships/scholarships, and net business losses. 

Furthermore, suppose you are under 60 and unemployed in a job equivalent to the one you had when you retired. In that case, OPM will determine that you have recorded your handicap and will discontinue your annuity payments when this determination is made.

Contact Information:
Email: aaron@steelecap.net
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at compliance@bedrockia.com or 800-779-4183.

Free Retirement Benefits Analysis

Federal Retirement benefits are complex. Not having all of the right answers can cost you thousands of dollars a year in lost retirement income. Don’t risk going it alone. Request your complimentary benefit analysis today. Get more from your benefits.

I want more

After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely withhelping them pursue the most comfortable financial life possible.Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.Aaron can help you and your family to create, preserve and protect your legacy.That’s making a difference.

Aaron Steele, Federal Employee, Federal Employee Benefits, Federal Employee Retirement, Retirement 0

4 Retirement Mistakes You May Be Making

When saving and investing for retirement, there are a few things you can do to get ahead, as well as...

READ MORE
Aaron Steele, Federal Employee, Federal Employee Benefits, Federal Employee Retirement, Retirement 0

Learn Why Your Medicare Part B Premium Can Vary and How to Reduce It

Most people pay the standard rate for Medicare Part B premiums, but those with higher incomes pay more. The amount...

READ MORE
Aaron Steele, Federal Employee Benefits, Federal Employee Retirement, Retirement 0

Five Important Things to Remember About Social Security

Social Security benefits are an essential part of a federal employee's retirement. They're one of the three legs of the...

READ MORE
Aaron Steele, Federal Employee, Federal Employee Benefits, Federal Employee Retirement, Retirement 0

Transfer TSP Funds into Annuities

If you are preparing for retirement as a government employee, it is likely you have heard of the Thrift Savings...

READ MORE