How Much Can I Earn In Railroad Retirement While I Take Care of my Spouse?

Welcome, everyone, to another edition of the Highball Advisors Railroad Retirement Mailbag. I’m John McNamara with Highball Advisors, and today’s question comes from Don S.

Don writes: “I’m retiring from the railroad three years early—at age 64—to take care of my wife. How much can I earn per year from self-employed 1099-type work?”

First off, Don, I’m sorry to hear about your wife’s situation. It’s admirable that you're stepping up to care for her.

Now, regarding your question: Since you're retiring early, the Tier 1 portion of your railroad retirement is subject to an earnings limit. In 2025, that limit is $23,400. If you earn more than that, you'll face a deduction of $1 for every $2 you earn over the limit.

The good news is, there’s no penalty on your Tier 2 benefits, since you're not working for your last pre-retirement railroad employer.

Also, depending on your wife's condition, you might want to explore any state-level family leave programs—some states offer support for family caregivers under different versions of the Family and Medical Leave Act. It’s worth looking into.

For more details on this topic, check out my video titled "Should I Work in Railroad Retirement?" It covers many of the key considerations.

As always, railroaders, I hope you found this helpful. Feel free to send in your questions—I’m happy to make a video response.

Until next time, stay safe, stay on track, and take care. So long, everybody!

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.