Social Security Counts Boeing Apprenticeship Pay as Wages

A Boeing apprenticeship program has left some retirees surprised by how Social Security handles their training paychecks. The program offers paid training in aerospace manufacturing for up to 15 weeks, with graduates moving into full-time roles after completion.

However, the agency considers these training stipends as real employment and counts them against the annual earnings limit of $24,480 for someone below full retirement age. This means that if a retiree earns above this limit, their benefits can be withheld, with about $1 in benefits held back for every $2 earned above the threshold.

For example, if an individual earning $44,480 during the year has $20,000 over the limit, Social Security can withhold about $10,000 of their benefits. This could mean missing out on around five monthly checks, which may seem like a significant loss at first.

But it's essential to note that withheld benefits come back later when the retiree reaches full retirement age. Social Security recalculates their monthly benefit to credit them for the months' checks were held back, resulting in an increased benefit amount for the rest of their life.