Last Friday, Social Security announced the Cost of Living Adjustment (COLA) for benefits payable in 2018. Check out the fact sheet.
Next year’s COLA will be 2%. Also released at the same time, is the new amount of maximum taxable earnings. For 2018, that figure is $128,700, up from $127,200. The new maximum taxable earnings means the most a high wage earner can pay in the Social Security portion of FICA is $7,979.40, and double that for self-employed people. The earnings test exempt amounts have also increased to $17,040 per year for those under full retirement age and to $45,360 for the calendar year a beneficiary attains full retirement age.
All of these figures will be updated for reports run January 1, 2018 and after.