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Retiring at 64. BD April 2. Want first check in May. Should I apply for benefits in February very early in the month? Plan on working through June and will be making more than the allowable threshold. Not by much but probably $1000 over the limit. When does this amount come out of my check? The first check? Will I ever see that money or is it gone forever? As a rule of thumb will I get my first check around 90 days after applying? TIA.
I can answer only one of the several questions you posed; that is the one about whether you will ever see the money deducted from your SS benefit because of earnings over the limitation while you are younger than full retirement age.
The answer is that money is NOT gone forever. You will see it after full retirement age in the form of a recalculated, slightly higher benefit. Of course if you reach FRA and then die, the money will be gone forever. Otherwise you will recoup it gradually over time.
Retiring at 64. BD April 2. Want first check in May. Should I apply for benefits in February very early in the month? Plan on working through June and will be making more than the allowable threshold. Not by much but probably $1000 over the limit. When does this amount come out of my check? The first check? Will I ever see that money or is it gone forever? As a rule of thumb will I get my first check around 90 days after applying? TIA.
If you apply in April your first check will be in June.
You are supposed to estimate your future earnings after you retire over the limit. You can only make 1300 per month over that is excess.
Retiring at 64. BD April 2. Want first check in May. Should I apply for benefits in February very early in the month? Plan on working through June and will be making more than the allowable threshold. Not by much but probably $1000 over the limit. When does this amount come out of my check? The first check? Will I ever see that money or is it gone forever? As a rule of thumb will I get my first check around 90 days after applying? TIA.
The "Allowable Threshold" is different the first year of retirement - it's monthly, not annually.
How Work Affects Your Benefits (PDF from SS webpage) "Special rule for the first year you retire
Sometimes people who retire in mid-year already have earned more than the annual earnings limit. That is why there is a special rule that applies to earnings for one year, usually the first year of retirement. Under this rule, you can get a full Social Security check for any whole month you are retired, regardless of your yearly earnings.
In 2014, a person younger than full retirement age for the entire year is considered retired if monthly earnings are $1,290 or less. For example, John Smith retires at age 62 on October 30, 2014. He will earn $45,000 through October.
He takes a part-time job beginning in November earning $500 per month. Although his earnings for the year substantially exceed the 2014 annual limit ($15,480), he will receive a Social Security payment for November and December. This is because his earnings in those months are $1,290 or less, the monthly limit for people younger than full retirement age. If Mr. Smith earns more than $1,290 in either of those months (November or December), he will not receive a benefit for that month. Beginning in 2015, only the annual limit will apply to him."
The "Allowable Threshold" is different the first year of retirement - it's monthly, not annually.
How Work Affects Your Benefits (PDF from SS webpage) "Special rule for the first year you retire
Sometimes people who retire in mid-year already have earned more than the annual earnings limit. That is why there is a special rule that applies to earnings for one year, usually the first year of retirement. Under this rule, you can get a full Social Security check for any whole month you are retired, regardless of your yearly earnings.
In 2014, a person younger than full retirement age for the entire year is considered retired if monthly earnings are $1,290 or less. For example, John Smith retires at age 62 on October 30, 2014. He will earn $45,000 through October.
He takes a part-time job beginning in November earning $500 per month. Although his earnings for the year substantially exceed the 2014 annual limit ($15,480), he will receive a Social Security payment for November and December. This is because his earnings in those months are $1,290 or less, the monthly limit for people younger than full retirement age. If Mr. Smith earns more than $1,290 in either of those months (November or December), he will not receive a benefit for that month. Beginning in 2015, only the annual limit will apply to him."
Problem I see here is I might not be considered "retired" since my monthly income is more than $1290 monthly.
My earnings for the period after I leave my current full time job will be well under $1290 monthly.
I don't see where this rule will apply to me. I want to collect SS checks for April May and June. Monthly income for those 3 months will be over $15600. Actually I planned on working 11 weeks during those 3 months April May and June and quitting on June 17th. Gross for that period will be around $17000.
Will I get my full benefit for those 3 months? Less the amount over the $15600 threshold of course. Is this clear?
You may get your benefit, but you will have to repay it later when your employer reports your earnings for those months to SS. Usually, SS asks for this money after the fact, often at the end of the year, unless they've improved their just-in-time monitoring.
You're making this way too hard.
Schedule your SS benefit to begin AFTER you no longer have earned income. Solves the "how much will I or won't I get" issue, worrying about $1,290 mo. limit. Delaying payment also allows for a slightly higher benefit for the rest of your life because you've delayed payment, plus a proportionate higher COLA.
What's the big issue with scheduling SS payments while you're still earning over $5k/mo. - when the end result will be you won't get anything, anyway? Do you want that money now only to have to pay it back later?
And, why does the word "retired" matter? Only time you don't need to be worried about exceeding the $1,290 monthly limit is if you begin SS benefits at your full retirement age, or if you earn less than that a month if you retire before FRA.
You're right. I was having trouble understanding the "limits". I thought I could earn the $15600 while still working in effect collecting two paychecks at once. Seems I will have to forego that idea and collect the month after I stop working my current full time job. Thanks for straightening that point out for me.
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