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Old 02-27-2015, 04:15 AM
 
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after you file your taxes you will get a bill from ss requesting any over payment back.


at full fra they will add up all the money you gave back. so if you paid back 1/2 the money each year over 4 years from 62- to fra they will recalculate you as if you filed at 64 instead of 62 and those will be your new payments for life,

everything you pay pack gets translated into time.
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Old 02-27-2015, 04:21 AM
 
71 posts, read 64,534 times
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Quote:
Originally Posted by pdsnickels View Post
I have 5 specific questions regarding social security.

I am taking early social security at 62Ĺ . I am told will be getting around $1220/month.

My wife and I will work the first 6 months then move to another country which is why I need to take my social security early. We will live on that plus some supplemental online business income we'll have. (The question is not "Should I take early social security?" (I know it's generally not advised!) but rather I have questions about how it works:

1) I can choose to leave my job and collect my Social Security at any time of my choice now that Iím 62 - it is my choice to do so at any time regardless of my job, income, wife's job, wife's income or etc, correct? My wife's income has no bearing on it, right?

2) I'll be applying for my early Social Security while working the 1st 6 months of the year and making up to but not OVER the $15,720 exemption. As I understand it this will not cause Social Security to take out any of my monthly benefit since my income will be under the exemption amount for the year. Right?

But my question is:
* If I am making, say, $2k/month at my job for the 1st 6 months, while collecting my social security, that means I would make $24k for the year if I worked the whole year (but I'm actually quitting in July) which would be OVER the $15,720 exemption. HOWEVER, I will be quitting my job by July 1 so in fact my income will only be $12k for the year in this scenario.
How does SS know not to take out any income based on the $2k/month wages?

Do they wait until I have actually been paid $15,720 before they take anything out, or do they figure that since I am making $2k/month that I will be making $24k so therefore pay me less than my $1200/month Social Security benefit because it LOOKS like I'll be making $24k for the year?

3) My lump sum withdrawals of my 401k $ and Roth IRA $ ($15-22k total) will not count as part of the the $15,720 income exemption, right?

* BONUS QUESTIONS * :

4) If I have my social security benefits paid to a foreign bank is there any extra fee taken because of that or is it any way treated differently than if I have it sent to a U.S. bank? Iím sure there must be an exchange rate but is there anything more than that?

5) There used to be a way that if you collected social security early and then later paid back all you got from soc. sec., you could then collect based on the age you are at the time.
i.e. You collect beginning at age 62,you then pay back all the soc. sec. payments you've collected, when you reach age 66. You could then collect beginning at age 66 at that higher benefit rate as if you'd never collected at age 62.
This option no longer exists, right?
Any talk of bringing it back? (Wish they would!)

Thanks so much for your help! I am betting there are at least a couple experts here who can answer these for me!
I'm going to answer my own questions in order to help anyone else out who comes along with the same or similar questions, as I have spoken with social security and social security solutions about these things:

1) One can leave one's job any time and one's wife's income has no bearing on whether or not you're eligible to draw on your own ss account
2) Wrong. During the 1st year of applying if you are filing before full retirement age (say, 62 and one month), then what you make this year (2015 now) up to the point of filing is not relevant. It could be $40k or $80k. Once you actually file then you have to earn UNDER $1310/month (2015 figures) in order to get your benefit. As I understand it from this document ( http://ssa.gov/pubs/EN-05-10069.pdf ) if you make $1 over $1310 a month in any month after you start getting benefits, you will lose benefits for that entire month.
3) Withdrawals of investment income - 401k, Roth, property sales etc) have no direct bearing on social security benefits - i.e. they are not counted as "income" that goes against you or applies against the $15720/year or $1310/month exemption for 2015.
4) No - there may be currency conversions at the bank but Social Security does not charge a fee for this.
5) This option only exists for your first year of collecting now as I understand it. If you pay back the first year, you get to "start over" at that point if you want, or go back to work and file later... whatever. But this option is only good for the 1st year now, not many years like it used to be.

Hope this helps someone. Took me a long time to confidently find these answers.
DISCLAIMER: I AM NOT NOW NOR EVER HAVE BEEN A SOCIAL SECURITY EXPERT NOR DO I PLAY ONE ON TV OR INTERNET. SO GET EXPERT ADVICE FROM THE SOCIAL SECURITY ADMINISTRATION OR A PROFESSIONAL SOCIAL SECURITY EXPERT. IN OTHER WORDS WHAT I SAY ABOVE IS NOT SOMETHING YOU SHOULD BASE YOUR FUTURE ON. I think it's correct, but... I could be wrong....
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Old 02-27-2015, 04:46 AM
 
71 posts, read 64,534 times
Reputation: 80
Quote:
Originally Posted by mathjak107 View Post
after you file your taxes you will get a bill from ss requesting any over payment back.


at full fra they will add up all the money you gave back. so if you paid back 1/2 the money each year over 4 years from 62- to fra they will recalculate you as if you filed at 64 instead of 62 and those will be your new payments for life,

everything you pay pack gets translated into time.
Thanks. Their document re working and getting benefits is very misleading then on this point as it says, and I quote "If Mr. Smith earns more than $1,310 in either November or December, he won’t receive a benefit for that month."

So in reality I guess it's not wrong, just incomplete. What it should say is you will get a benefit that month but will have to pay it back next year. Correct? Which makes the document basically... Wrong!... if I understand you correctly.
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Old 02-27-2015, 04:49 AM
 
71,584 posts, read 71,730,589 times
Reputation: 49184
yep.

they ask you to project your earnings and they will pay you based on what you think you can keep so as to try to avoid the pay back at the end. we always vary a bit each year so we end up having to repay at the years end.

but if your hours and pay do not change you can just get what you are entitled to and owe nothing at the end. they just hold up a certain amount of checks so you equal out..
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Old 02-27-2015, 05:09 AM
 
71 posts, read 64,534 times
Reputation: 80
Quote:
Originally Posted by mathjak107 View Post
yep.

they ask you to project your earnings and they will pay you based on what you think you can keep so as to try to avoid the pay back at the end. we always vary a bit each year so we end up having to repay at the years end.

but if your hours and pay do not change you can just get what you are entitled to and owe nothing at the end. they just hold up a certain amount of checks so you equal out..
As someone said in another thread, the misinformation and incomplete information SSA puts out on their own site and on the phone and in person etc is staggering and unacceptable! Earlier tonight I found a document that totally contradicts another document - this on their own site!

To me, it's CRAZY!
I understand how complicated it is but when building a web site you have time to plan and think and get it RIGHT.
As for the phone and in person agents, well, maybe they need to actually pay people enough to get good smart people so they have a better chance of getting things right.
IMHO.

Thank goodness for forums like this where if you put in enough time you can kinda sorta hopefully get it right!
Thanks for your help!
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