December 6th Social Security Event: Q&As
Thank you for joining us at our recent event: Building Your Legacy! As promised, here are answers to questions that were not addressed during the event due to time constraints. For a comprehensive list of specific areas covered during the Social Security presentation, scroll to the bottom of this article.
Q: "I am eligible for deceased spousal benefits and would like to know if I apply to receive these now at age 65.5 how it would impact my full or deferred retirement benefits at 66 3/4 0R 70."
A: If we calculate your retirement and it is higher than what you are already getting as a survivor, you have a choice.
You can either switch over immediately for the higher monthly payment, or you can stay on survivor benefits and switch over to retirement later on down the road as late as age 70 if you want to completely max-out your retirement (by getting all possible delayed retirement credits added to your calculation).
Q: "Is Social Security taxed as income?"
A: Although you’re not required to have Social Security withhold federal taxes, you may find it easier than paying quarterly estimated tax payments.
You may pay federal income taxes on your benefits if your combined income (50% of your benefit amount plus any other earned income) exceeds $25,000/year filing individually, or $32,000/year filing jointly. You can pay the IRS directly or have taxes withheld from your payment.
For more information, read Tax Guide for Seniors (IRS Publication No. 554) or reference our website at Benefits Planner | Income Taxes And Your Social Security Benefit | SSA.
Q: "Can you claim benefits on an ex-spouse who is deceased?"
A: As a former spouse, you may be eligible for Survivors benefits if you meet certain requirements. Please refer to our website at Survivors Benefits | SSA.
Q: "I'm collecting fulltime social security benefits. Can I work 20 hours a week without losing benefits?"
A: If you’re younger than full retirement age, there is a limit to how much you can earn and still receive full Social Security benefits. If you are full retirement age, your benefits will not be reduced regardless of earnings. Please refer to our website at Retirement Earnings Test Calculator (ssa.gov) for further information.
Q: "Can I collect off my husband SS at 62 and wait to collect my until I am 67?"
A: If you were born on or after January 2, 1954 and qualify for both retirement and spouse’s (or divorced spouse’s) benefits, you must apply for both benefits. This is called “deemed filing.” If you file for one benefit, you are “deemed” to file for the other one, too, even if you don’t become eligible for it until later. Benefits Planner: Retirement | Filing Rules for Retirement and Spouses Benefits | SSA
Q: "If I receive PERS retirement at my full retirement age, is my social security discounted?"
A: If you are eligible for a pension based on work you did for a federal, state, or local government, a nonprofit organization, or in another country and did not pay Social Security taxes on your earnings, this pension can affect the amount of your Social Security benefits. We refer to this reduction as the Windfall Elimination Provision, or WEP. For more information click here: Benefits Planner: Retirement | Windfall Elimination Provision (WEP) | SSA
Q: "What are the preliminary steps that need to be taken when turning 62 to make sure you’ll receive your full benefits?"
A: Choosing when to retire is an important and personal decision. The best way to start planning for your future is by creating a my Social Security account. With my Social Security, you can verify your earnings, get your Social Security Statement, and much more – all from the comfort of your home or office. Please refer to our website at my Social Security | SSA or What is an Account? | my Social Security | SSA.
Q: "If spouse #1 waits until 70 to collect SS, is there an advantage to the lower earning spouse with their own work history to also wait for age 70?"
A: If any individual chooses to delay getting benefits until age 70, they will increase their monthly benefit. This increase is from delayed retirement credits they earn for their decision to postpone receiving benefits past your full retirement age. If an individual is eligible for both their own retirement benefits and for benefits as a spouse, we always pay their own benefits first. If their benefits as a spouse are higher than their retirement benefits, they will get a combination of benefits equaling the higher spouse benefit.
If an individual is eligible because of a spouse’s work, the amount is at its highest at their “Full Retirement Age" (between 66 and 67). A spousal benefit doesn’t increase if the individual waits and applies after that time.
Q: "Can I apply for Medicare at 67 if that is my retirement age?"
A: Most people sign up for Part A (hospital insurance) and Part B (medical insurance) when they're first eligible, typically at age 65.
It's important to sign up promptly to avoid gaps in coverage or late enrollment penalties. However, if you're already covered through an employer group health plan and still working, it might make sense to sign up for Medicare later or delay Part B. Please carefully review our website for further information on When to sign up for Medicare | SSA.
Q: "What is the difference between and Advantage plan and a Supplemental plan?"
A: Original Medicare includes Hospital (Part A) and Medical (Part B) insurance. If you want drug coverage, you can add a separate drug plan (Part D). You can also add a Medicare Supplement Insurance (Medigap) policy to help pay your out-of-pocket costs.
A Medicare Advantage Plan is an all-in-one alternative to Original Medicare. These "bundled" plans include Part A, Part B, and usually Part D. These plans may also have lower out-of-pocket costs and may offer extra benefits that Original Medicare doesn’t cover— like vision, dental, and more.
For further information you may find it beneficial to visit Welcome to Medicare | Medicare.
Q: "Is it the highest 35 CONSECUTIVE years?"
A: We are looking for the highest 35 years during a worker's lifetime of earnings, regardless of when earned. You may find the information at Social Security Benefit Amounts (ssa.gov) helpful.
Q: "If I work Jan thru June at my age of 64 and make 59K, will that effect my SSC earnings?"
A: The first thing we recommend is that you visit ssa.gov/pubs and search for the publication titled, How Work Affects Your Benefits. It explains the rules you must follow, and it gives some great examples of different scenarios that could apply to your individual situation.
You can get Social Security retirement or survivors benefits and work at the same time. However, if you’re younger than full retirement age, and earn more than certain amounts, your monthly benefit remains the same but the total amount of benefits you receive for the year will be reduced. The amount that your annual benefits are reduced, however, isn’t truly lost. Your monthly benefit will be increased at your full retirement age to account for benefits withheld due to earlier earnings.
Each year we review the records for all Social Security recipients who work. If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due.
Q: "Any special considerations for stay-at-home parents (mom)-- are chances just that my spousal benefits could be better than my own? I stayed home working part-time for nearly 20 years. Suggestions to optimize now? I am 60. Just work and contribute as much as possible over the next few years?"
A: Credits are the "building blocks" Social Security uses to find out whether you have the minimum amount of covered work to qualify for each type of Social Security benefit. If you stop working before you have enough credits to qualify for benefits, your credits will stay on your record. If you return to work later, you can add more credits so you can qualify. Your average earnings during your working years determine how much your monthly payment will be. It may be beneficial to review this area of our website Benefits Planner | Social Security Credits and Benefit Eligibility | SSA.
Social Security Presentation Links
All the information contained in the presentation is available on our website at The United States Social Security Administration | SSA.
Since updates can occur, referencing the Social Security Administration website is the best way to ensure you have the most up to date and accurate information available.
The specific areas covered during the presentation are listed below:
