Including earnings over the contribution and benefit base in Social Security benefit formula

(a) Inclusion of earnings over the contribution and benefit base Section 215(a)(1)(A) of the Social Security Act (42 U.S.C. 415(a)(1)(A)) is amended— (1) in clause (ii), by striking and at the end; (2) in clause (iii), by striking the comma at the end and inserting but do not exceed one-twelfth of the contribution and benefit base determined for the applicable year under section 230; and (3) by inserting after clause (iii) the following: (iv) 1 percent of the individual’s averaged indexed monthly earnings to the extent that such earnings exceed one-twelfth of the contribution and benefit base determined for the applicable year under section 230.. (b) Conforming amendments Section 215(e)(1) of the Social Security Act (42 U.S.C. 201 et seq.) is amended by inserting and before 2027 after after 1974. (c) Effective date The amendments made by this section shall apply with respect to remuneration paid in calendar years after 2026 and to net earnings from self-employment derived in taxable years beginning after December 31, 2026.