Hungary and the United States have signed a social security agreement to help protect the social security benefits of workers and their families who have earned credits in both countries. This agreement has been in place since 1979 and was recently updated in 2020.

The agreement ensures that workers who have split their careers between Hungary and the United States will not be penalized when it comes to receiving social security benefits. This is important because, without this agreement, those who have worked in both countries could potentially lose out on social security benefits.

Under the agreement, those who have earned enough credits to qualify for social security benefits in one country can count credits from the other country to meet the eligibility requirements. This means that American workers who have contributed to the Hungarian social security system will have those contributions counted towards their eligibility for social security benefits in the United States.

The agreement also helps to prevent double taxation of social security benefits. This means that individuals who are eligible for social security benefits from both countries will be able to receive their benefits without being subject to double taxation. The agreement also ensures that individuals will not lose benefits due to residency in another country.

For example, if a Hungarian citizen worked in the United States for a few years and earned enough credits to qualify for social security benefits, they could count their credits from Hungary towards their eligibility for benefits in the United States. Additionally, if an American citizen were to retire to Hungary, they would still be eligible for their U.S. social security benefits without being subject to double taxation.

In summary, the social security agreement between Hungary and the United States ensures that workers and their families who have earned credits in both countries will not be penalized when it comes to receiving social security benefits. The agreement helps to prevent double taxation of benefits and ensures that individuals will not lose benefits due to residency in another country. This is an important agreement that provides peace of mind to those who have split their careers between Hungary and the United States.