When Should I Stop My Part Time Job so I Don't Lose My Current Connection for Railroad Retirement?

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

Frank asks: “If I retire at 58 and only work part-time — say, around 10 hours a week — until I start collecting my Railroad Retirement benefits, can I still maintain my current connection?”

Great question, Frank. That period between when you leave your railroad job and when you start receiving your annuity is really important.

To maintain your current connection, you need to have at least 12 months of railroad service within the 30 months before your annuity begins. However, if you take on regular employment outside the railroad industry before your annuity starts, you could break that connection.

This includes W-2 employment, working for an S-corporation, or being part of a multi-member LLC. Even part-time work in these forms could jeopardize your current connection status.

My advice? Always confirm directly with the Railroad Retirement Board before you accept any new job or reach your annuity start date. It’s better to be safe than sorry.

Also, be sure to check out my video, “Do I Need a Current Connection to Receive Railroad Retirement Benefits?” — it dives deeper into this topic and helps clarify many of these concerns.

I hope you found this helpful. If you have a question you'd like me to cover, feel free to send it in — I might feature it in a future video.

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.