social security benefits (milk, tax, cost, collecting)

[mathjak107]

Originally Posted by forest beekeeper

I see a problem with you reasoning. No insult intended.

I am now on a Federal pension. When I become eligible for SS, it will be less than my existing pension. My pension will be reduced by the amount of my SS entitlement each month. So my gross monthly income will remain the same.

My pension and my SS are both 'taxable'.

Here is the monkey wrench. I am married and we file a joint return. My pension is not high enough to pay income taxes. Our standard deductions and exemptions are greater than my pension, so my pension is 'exempt' from taxes, as will be my SS entitlement.

It is our other streams of income, which could possibly cause us to pay income taxes, if we failed to maintain an adequate tax-plan and have proper sheltering.

So your reasoning that you will be paying income taxes on your SS entitlement, may be faulty.

i just noticed that tax exempt interest is added back in the calculation to see if your social security is taxable.... i never noticed that before....that can be a zinger for some planning

[Gandalara]

Originally Posted by mathjak107

i just noticed that tax exempt interest is added back in the calculation to see if your social security is taxable.... i never noticed that before....that can be a zinger for some planning

Even withdrawn Roth monies?

[forest beekeeper]

Originally Posted by mathjak107

i just noticed that tax exempt interest is added back in the calculation to see if your social security is taxable .... i never noticed that before .... that can be a zinger for some planning

I had not noticed that.

Thanks.

[lenora]

Originally Posted by Gandalara

Even withdrawn Roth monies?

Nope. Roth distributions are NOT included.

[miokie]

Originally Posted by mathjak107

i forgot ,,,,if wife files at 62 , i file for 1/2 hers at 66, i file for myself at 70 but can she switch to 1/2 mine from hers when i finally file? i think so if i remember ...the 1/2 of mine will be higher then her early filing rate

If she retires early, then her share of your benefits will be permanently reduced.
From www.socialsecurity.gov:

A spouse can choose to retire as early as age 62, but doing so may result in a benefit as little as 32.5 percent of the worker's primary insurance amount. A spousal benefit is reduced 25/36 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.
This reduction factor is applied to the base spousal benefit, which is 50 percent of the worker's primary insurance amount. For example, if the worker's primary insurance amount is $1,600 and the worker's spouse chooses to begin receiving benefits 36 months before his or her normal retirement age, we first take 50 percent of $1,600 to get an $800 base spousal benefit. Then we compute the reduction factor, which is 36 times 25/36 of one percent, or 25 percent. Applying a 25 percent reduction to the $800 amount gives a spousal benefit of $600. Thus, in this case, the final spousal benefit is 37.5 percent of the primary insurance amount.

[mathjak107]

thanks, i had just saw that on their site too...oh well i thought i had another little perk to throw on when i filed but guess not

[DeeRae]

I am 66 - divorced after 20 years of marriage, and still working. My question is: Can I apply for spousal benefits (1/2 of my ex's social security that he draws) while I am still working. Then when I retire at 68, can I change and draw my full social security?

[Tesaje]

Originally Posted by DeeRae

I am 66 - divorced after 20 years of marriage, and still working. My question is: Can I apply for spousal benefits (1/2 of my ex's social security that he draws) while I am still working. Then when I retire at 68, can I change and draw my full social security?

I believe the answer is yes. You can get whichever benefit you qualify for that is higher.

[marmac]

I doubt that !

If you file for SS at age 66 they will pay you whichever is higher---------yours at age 66 or half of his.

It is highly unlikely that working just 2 more years will make your SS higher than half of his if it already isn't.

[marmac]

Do some of you folks stay up at night thinking schemes up ?

Forget the schemes and get some sleep.