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Old 06-14-2015, 12:29 PM
 
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"The high five figures you earned in 2015 would be factored in effective January, 2016 and be reflected in your new PIA- primary insurance amount, (which is the same as your FRA amount)"


i am confused about the first sentence above . if i retire in july and earned 5 figures in 2015 then if i file in 2016 there should be nothing taken off based on 2015 earnings as far as the earmings test anymore , correct ?
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Old 06-14-2015, 02:53 PM
 
Location: Cape Elizabeth
425 posts, read 387,365 times
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Quote:
Originally Posted by mathjak107 View Post
"The high five figures you earned in 2015 would be factored in effective January, 2016 and be reflected in your new PIA- primary insurance amount, (which is the same as your FRA amount)"


i am confused about the first sentence above . if i retire in july and earned 5 figures in 2015 then if i file in 2016 there should be nothing taken off based on 2015 earnings as far as the earmings test anymore , correct ?
Correct. The earnings you earn pre-retirement, whether in the year of retirement, or before a month of retirement, don't count negatively towards the SSA "work and earnings test".

They do count, positively, the next year to raise your PIA (FRA) amount and raise your monthly benefit.
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Old 07-01-2015, 08:09 PM
 
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I will reach my FRA of 66 in June of 2016. My estimated benefit is 1600.00 per month. My wife is 58 and we have a son that is 9 years old. What would we gain by me taking my social security (and they will receive benefits also) in January of 2016. I would continue to work until June 2016. I average 850.00 weekly at my job. Thanks so much!
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Old 07-01-2015, 08:37 PM
 
Location: Cape Elizabeth
425 posts, read 387,365 times
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Quote:
Originally Posted by Pomcrazy View Post
I will reach my FRA of 66 in June of 2016. My estimated benefit is 1600.00 per month. My wife is 58 and we have a son that is 9 years old. What would we gain by me taking my social security (and they will receive benefits also) in January of 2016. I would continue to work until June 2016. I average 850.00 weekly at my job. Thanks so much!
You are born June, 1950? If you apply in January, 2016, your $1600.00 becomes $1555.00 (97.2% of the full amount). Your son receives $800.00 per month and so does your wife. Total family benefits of $3155.00 per month to lose $45.00 per month. To me, that is a no brainer!

But, I also think you should apply right now - I am talking July, 2015. If $850.00 is your gross (and that is the figure I need - gross weekly), you earn approximately $44200.00 a year. SSA doesn't care about the first $15720.00. That leaves $24480.00. Then they don't care about $1.00 for every $2.00 over that, so that leaves $12240.00 that has to be held back from the six checks this year.

Your check in July, 2015 would be $1502.00 (93.89% of the full amount). Your son gets $800.00 and so does your wife. That is a total family benefit of $3102.00.

$3102 x 6 = $18612.00. SSA holds back $12240.00, so you and your family are still due $6372.00 this year, while you keep working and earning your $850.00 a week. That is about 2 checks, so they would pay you and your son and wife for Nov and Dec. Then in 2016 you would receive all your checks.

When 2016 is over, they would recalculate your reduction factor and you would only be permanently reduced by 7 months (for the 2 checks you got in 2015 and the 5 in 2016 before your FRA month) and your permanent rate of reduction is 96.11% of your full amount or $1537.00 a month. Your son receives his $800.00 until HS graduation or age 18, whichever is later and your wife receives her $800.00 a month until your son turns 16.

What do you think? Any further questions or clarifications? Remember, you do not have to retire. This scenario has you working, earning $850.00 week, gross. It is like a bonus. If you decide to apply now, call 1-800-772-1213 and ask for an appt. Don't forget to mention your wife and son. I assume your wife is not working. If she is, how much does she earn gross per week?
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Old 07-01-2015, 09:05 PM
 
2,294 posts, read 1,561,151 times
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Quote:
Originally Posted by mathjak107 View Post
"The high five figures you earned in 2015 would be factored in effective January, 2016 and be reflected in your new PIA- primary insurance amount, (which is the same as your FRA amount)"


i am confused about the first sentence above . if i retire in july and earned 5 figures in 2015 then if i file in 2016 there should be nothing taken off based on 2015 earnings as far as the earmings test anymore , correct ?
I'm still confused. I'm retiring Oct 1, 2015 w a pension. Birthday is Sept 1954. I want to collect ss at 62 should I start in sept 2016 or Jan of 2017?
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Old 07-01-2015, 09:39 PM
 
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My wife grosses 370.00 per week. I just looked at SSA.gov and my retirement benefits have increased to 1793.00 per month.
My income for last year at my job was $52980.00. I assume I will make at least that for 2015. I am sorry my figures were incorrect in the previous post. I was going by memory. I really appreciate you figuring this for me.

Last edited by Pomcrazy; 07-01-2015 at 10:05 PM..
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Old 07-01-2015, 09:40 PM
 
Location: Cape Elizabeth
425 posts, read 387,365 times
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Burkmere, You would apply effective October, 2016, not january of 2017.
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Old 07-01-2015, 11:17 PM
 
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Quote:
Originally Posted by ilovemycat View Post
Burkmere, You would apply effective October, 2016, not january of 2017.
Thanks, ILMC!
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Old 07-02-2015, 05:58 AM
 
Location: Cape Elizabeth
425 posts, read 387,365 times
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Quote:
Originally Posted by Pomcrazy View Post
My wife grosses 370.00 per week. I just looked at SSA.gov and my retirement benefits have increased to 1793.00 per month.
My income for last year at my job was $52980.00. I assume I will make at least that for 2015. I am sorry my figures were incorrect in the previous post. I was going by memory. I really appreciate you figuring this for me.
Don't worry about the previous post. Even if it doesn't work out for you, it will help someone else.

With the new figures: I used $54000- (about a $1000.00 more than last year) - first lets talk about 2016. That year, since you reach 66 in June, they only care about Jan to May. So SSA cares about $54000 divided by 12 equals $4500.00 a month. Times 5 months = $22500.00.

$22500.00 is way under the limit for people reaching FRA in 2016, so that means you can receive all your checks in 2016.

Yours would be $1743.00 beginning January, 2016.

Now, last night when I wrote you, I forgot about the SS Family maximum. The family maximum limits the amount children and spouse's receive in retirement and survivors benefits.

This morning, I think I figured out that your family maximum with your new FRA amount of $1793.00 is $3309.00 a month. If I am correct, then that is the most you and your wife and son can receive monthly. If we subtract $1793, it leaves a monthly benefit of $758.00 per person while they both collect. Your son's would be $758.00 and your wife's is $758.00 as well. But, you can call SSA and ask for your family maximum. They will tell you.

Now, your wife is not FRA age, so her earnings in a year are $19240.00. Using 2015 earnings figures - the first $15720.00 she earns, they don't care about, so it will be subtracted. That leaves $3520.00. They don't care about $1.00 for every $2.00 of the $3520.00, so we divide it in half. That leaves $1760.00 they care about.

So, your wife cannot receive benefits for about 3 months of 2016, but receives the other 9. But, if I remember correctly, in those 3 months, your son's can go up to the true 50% of your $1793.00, so his would be $896.00 for those months, and then drop down again when your wife comes back on.

So, January 2016 is most advantageous for you guys. You lose $50.00 but gain $1743.00 x 5 = $8715.00 plus your son's 3 checks at $896.00 = $2688.00, plus his 2 checks at $758.00 = $1516.00 and your wife's 2 checks at $758.00 = $1516.00. A total gain, before FRA month of $11403.00. Divide the loss into the gain, ($11403.00 divided by $50.00) and it takes 228 months or 19 years to make back that money.

Now, in 2015 (July- this month) it is pretty much a wash. You might be due about $714.00, if my figures were correct - that is part of one check, but you carry the extra reduction factor with you until 2016 is over.

I would apply January 2016.

Again, if you call SSA and get a different family maximum, you can always write me again. Or, any other questions etc. feel free to write or message me.

Good luck!
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Old 07-02-2015, 07:30 AM
 
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This is great information ILMC. Thank you for responding. We will definitely do January 2016. Should we set up the January 2016 draw date in advance? If so, how many months in advance. Thank you!
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