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My hubby passed away suddenly at the age of 60 in early February, and I turned 61 three days later. I have a telephone appointment with the SSA in a couple of days, when I’ll be offered survivor benefits. I plan to ask questions on the phone, but would like to understand as much as possible about my choices before the call.
From what I understand, if I take survivor benefits now, they’ll be 71% or so of his benefits at FRA (67). This would be about equal to my own benefits at FRA.
If I understand correctly, I can:
1. wait until his FRA and file for benefits on his record at that time,
2. take survivor benefits now and file on my own record later, or
3. take mine early, and then take survivor benefits at his FRA (probably the worst choice)
If I take survivor benefits now and file at FRA, can I take benefits based on his record at FRA, or only on my lower record?
Fortunately, we did not include SS in our retirement budget and have enough saved/invested without it, but I’m hoping to make a sensible decision.
Starting at age 60 you can take reduced survivor while letting your own benefit grow .
If down the road your benefit is higher you can switch .
Or if you are 62 you can take your own early benefit , wait until fra and then switch to survivor.
If you are fra and you take survivor you will get what he got ..if he filed early for his ss you get his reduced amount . If he filed after fra you get his delayed credits too .
If you take survivor early and he took ss early then they give you a reduction off his full amount regardless when he filed ...that is to avoid a bad double reduction if you both file early where he took ss early and you take survivor pre fra .
That is where the x.71 comes in ....that is when you take early survivor. At 62 it is x.81
Last edited by mathjak107; 03-02-2021 at 03:32 AM..
When I took survivor benefits at 60, I was surprised to get about 95% of what my DH was getting (he started at 62). Also, when I asked SSA, I was told that was all I could get, I couldn't switch to my own, I was stuck with widow's benefit (not that I had much built up on my own, it was a hypothetical question).
When I took survivor benefits at 60, I was surprised to get about 95% of what my DH was getting (he started at 62). Also, when I asked SSA, I was told that was all I could get, I couldn't switch to my own, I was stuck with widow's benefit (not that I had much built up on my own, it was a hypothetical question).
It may be that benefit on your own record would be less than your Survivor benefit. It's not that you CAN'T switch- it's just that you wouldn't want to because your benefit would decrease.
My DH died when I was 63 and I wasn't collecting on my own record. He was 78. So, I get 100% of what he was getting and the paperwork from SS actually says I can file for the higher benefit I'll get on my own record any time I want. I'm 68 and will likely give it another year and then file for benefits on my record which will give me a $1,500/month bump (before all the extra taxes and IRMAA surcharges ).
Thank you, everyone. I’m leaning towards waiting until his or my FRA of 67. I’m six months older, so there’s probably not much of a difference there. He was 60, and I just turned 61, so neither of us has filed yet.
I don’t need the money right away, and I think that survivor benefits at my current age will be about the same as my own benefit at FRA, but waiting until FRA will give me payments equal to what he would’ve collected at FRA.
On another note, I’m hoping to start taking distributions from one of his 401(k)s based on life expectancy, if the plan allows, while leaving my own as is and rolling his other 401(k) into an IRA.
I would lean toward waiting with the following assumptions:
I do not need the money now
Deferring is like buying a very secure life time annuity in the future that is inflation adjusted
If you have a future problem with your investments a larger SS payment maybe be very beneficial.
Each state has its own Shine group. They help advise on Social Security. After you talk to SS you might want to contact them and discuss for a second opinion. http://www.floridashine.org/Resource...rce-Links.aspx
I would lean toward waiting with the following assumptions:
I do not need the money now
Deferring is like buying a very secure life time annuity in the future that is inflation adjusted
If you have a future problem with your investments a larger SS payment maybe be very beneficial.
Each state has its own Shine group. They help advise on Social Security. After you talk to SS you might want to contact them and discuss for a second opinion. SHINE - Resource Links
On another note, I’m hoping to start taking distributions from one of his 401(k)s based on life expectancy, if the plan allows, while leaving my own as is and rolling his other 401(k) into an IRA.
Would this be a good time to start doing Roth conversions? Anybody?
Would this be a good time to start doing Roth conversions? Anybody?
DH converted his IRA into a Roth several years ago. I already had a Roth IRA before we got married, but had to stop contributing die to income limits.
He has a traditional and a Roth 401(k) at one company. These I’m rolling into traditional an Roth IRAs, respectively.
Previously, we both worked at the same company, where I have both a traditional and a Roth 401(k), and he has just a traditional. I stopped working a few years ago to help my terminally ill mother and disabled father. (They’ve both since passed).
As my only potential income will be from capital gains and stock dividends associated with our stocks and mutual funds, which I prefer to reinvest, I figured taking distributions from an inherited 401(k) would give me plenty to live on and minimize the taxes now, as well as when distributions are required. If I were to convert to do a Roth conversion, the tax hit would be pretty ugly.
Would this be a good time to start doing Roth conversions? Anybody?
You have to be real careful if you are two years from medicare or at medicare age ...those conversions can get you to levels that will cost you thousands more in Medicaid premiums
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