Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If this person is drawing an income over the very small limit wouldn't any SS benefits have to be paid back?
What if all his money is in a Roth ?
You see..everyone can be doing different things to position themselves such that they have very little taxable income to declare once retired.
What if all his money is in a Roth ?
You see..everyone can be doing different things to position themselves such that they have very little taxable income to declare once retired.
Poster said owner was still the owner of their company and always drew a salary.
If this person is drawing an income over the very small limit wouldn't any SS benefits have to be paid back?
That's a good question . I might nose around and ask someone who might know (I am not asking him ). He is in a lot less these days. I think he has a substantial passive income.
If this person is drawing an income over the very small limit wouldn't any SS benefits have to be paid back?
If one is reporting earned income (e.g., W-2 wages) prior to full retirement age (FRA) and also collecting SS benefits, there will be a reduction in the SS check. For 2015 the SS benefit is reduced by $1 for every $2 of earned income in excess of $15,720.
This money isn't gone forever, though, as it will eventually result in a higher future benefit.
Strangely enough, starting at the month of one's FRA, one can earn as much as they like and there is no modification to the SS benefit.
actually they can earn more the year before fra too but it isn't unlimited , it just has a higher cap than earlier years . .
Yes, that's true. I chose to keep the reply as brief as I could.
I just recently started reading about the rules for filing, and I must say it is a bit overwhelming. There are certainly some "freebies" in there that would easily be missed if one didn't take the time to learn.
Add in Medicare, the ACA, and the tax code, and things get really... well... fun is not the right word...
Well, of course that is possible as the remaining spouse would continue to collect whatever the highest amount was. But there is no sense at all, not one iota, to not collecting at 70. Makes no sense.
When I say grandfather... he really was my step grandfather as my real grandfather passed away when I was a small child.
My step grandfather was a toolmaker that emigrated from Germany after WWI with nothing... his entire life he was grateful for all the opportunities America provided and pledge to never take a dime...
Still remember family gatherings and he would always make the toast and it would always be the same... nothing but gratitude saying he owes all that he ever achieved to America and he wanted to make sure all us kids/grandkids knew and appreciated it...
He really was quite a man and more "American" than anyone I have ever met... I guess the term would be Patriotic.
I did ask him about it once... he said let those that "Need" it have it as he was still doing tool and die work well into his 80's in his little shop... had some real big names that he did work for... like NASA and Caterpillar Tractor and even Kellogg's the cereal maker...
I have a very old Depression era sign he kept at his desk... Prosperity is earning a dollar and needing 99 cents...
Last edited by Ultrarunner; 10-23-2015 at 07:16 PM..
I guess I can understand the Patriotic angle, and of course that was fully up to him, and all a moot point at this time, but he could have collected, and left it for his wife, or donated to a worthy charity...
People only get paid for their highest 35 years of contributions. Getting people to pay for more years, for only a very slightly increased benefit in my case, is what the government wants.
I graduated when I was 20. Have worked 43 years. When I use the Social Security estimator, it makes almost no difference to my benefit if I estimate a zero dollar earned income for future years, or a continuation of my current earned income.
Retiring at 62 rather than FRA costs you 25% of your benefits. That's a pretty significant penalty to retire a few years early. When you are figuring out whether to retire or continue working, you need to seriously consider that.
For many workers, especially women who may have taken time off to raise children or worked part-time, it's not so easy to accumulate 35 years in SS at anything like their current salary (even when adjusted for inflation), so those extra years of higher income can make a significant difference, especially when coupled with the early retirement penalty. Some people work in jobs where they don't pay into SS for a while. Others may have attended school into their mid/late twenties and had low income during those years. Others may have started out in low wage jobs and gradually worked themselves up to much better paying positions. Somebody who started out early in well-paying jobs for the time is probably not going to have the same kind of spike from working 4 more years, but he or she will still suffer the 25% penalty.
Because I'm one of those people who had to use low-income years to get my 35 years in, the difference between taking SS at 62 and at 66 is about $700/month. Furthermore, because I stayed four more years, my pension benefit will increase about 20% or about $500/month. Nobody can tell me it makes sense to short myself $14k annually for the rest of my life just to make sure "I get my share" as soon as I can because it takes so long to make up for that "lost money". It's a stupid, short-sighted attitude but many people have it, including many otherwise intelligent, educated people. So what if I don't "recoup" that lost SS and pension money because I die "too soon"? While I'm alive, I'll have lived a lot more comfortably.
you got it ! the question should never be what if i die or my spouse and i die before we break even .
the real question should be what if i live ?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.