; or (B) if such individual initially became entitled to disability benefits in the calendar year 2019 or any subsequent calendar year, equal to the higher of the individual’s reduced old-age insurance benefit under paragraph (1) and the individual’s disability insurance benefit under section 423(a)(3). . (c) Conforming amendment Section 223(a)(2) of the Social Security Act ( 42 U.S.C. 423(a)(2) ) is amended by striking Except and inserting In the case of an individual who initially becomes entitled for disability benefits in any calendar year before 2019, and except . 402. Retroactive payment of benefits (a) In general Section 223(b) of the Social Security Act ( 42 U.S.C. 423(b) ) is amended by striking 12th month and inserting 6th month . (b) Effective date The amendment made by subsection (a) shall apply with respect to applications for disability insurance benefits filed on or after January 1, 2019. 403. Inclusion of unearned income in determination of substantial gainful activity (a) In general Section 223(d)(4) of the Social Security Act ( 42 U.S.C. 423(d)(4) ), as amended by section 3(b), is further amended by adding at the end the following: (D) (i) If the amount of unearned income (as defined in section 1612) of an individual for a month is equal to or greater than the monthly income limit for such month, the individual shall be deemed to have engaged in substantial gainful activity for such month. (ii) For purposes of this subparagraph, the monthly income limit is the amount of earnings derived from services, prescribed by the Commissioner under regulations issued pursuant to subparagraph (A), sufficient to demonstrate an individual’s ability to engage in substantial gainful activity for a month. . (b) Effective date The amendment made by subsection (a) shall apply with respect to monthly insurance benefits paid for months beginning after the date that is 1 year after the date of the enactment of this Act.