Ask Larry: Questions and Answers

Displaying 9991 - 10000 of 10063 questions.

Should My Spouse Collect Early To Be Held Harmless?

Dear Larry,

My spouse filed and suspended last year when I turned 66. I filed and I am receiving a spousal benefit. We have used your software and made certain assumptions given our health conditions. Based on these assumptions, the software recommended that my spouse begin drawing her benefit in January of next year. My spouse will be 69 in March. Taking into account the “hold harmless” provisions of Medicare and the likely small cost of living increase for SS, would my spouse be better off beginning drawing in December or earlier this year so she would be held harmless on any . . . Read More

Category: Medicare
Posted: Jun 24 2016 - 10:45am

What About Future Social Security Benefit Cuts?

Hello,
I'm curious if your software, in an effort to maximize life time benefits, has considered the possibility of a 21% cut in benefits in 2034? Is there an option to run that scenario? I'm 64 and waiting till 66 to begin my spousal (she began at age 62 3 yrs ago) and letting mine grow till age 70. However, if I am going to see a big cut 12 years after starting, it could make sense to begin mine now and draw a benefit for 6 extra years before any cut. Thoughts?

Hi, Our software does permit you to specify a SS benefit cut of a given percentage starting at a given future date . . . Read More

Category: Social Security Benefit Cuts
Posted: Jun 24 2016 - 10:45am

Can I Take Divorced Spousal Benefits And Still Work?

Hi Larry,

I'll be 66 in January 2017 and I was married for 10 tears and divorced never married. Can I apply for divorce suppose benefits and still continue to work and take my benefits at the highest possible value at age 70.

Best, Zeyheb

Dear Zeyheb,

(I think tears rather than years is an interesting slip!)

Once you reach 66, you can file just for your divorced spousal benefit and earn as much as you want because the Earnings Test goes away after one reaches full retirement age. You can go into the office a few months before hitting 66 and file just . . . Read More

Category: Divorced Spousal Benefits
Posted: Jun 24 2016 - 10:30am

Should I Collect Early To Be Held Harmless?

Larry, I'm now 69 and did the file and suspend with my wife getting her SS as a non-working spouse when she turned 66 in 2013. I pay my Medicare every 3 months by credit card. This year 2016, my Medicare went up because I send in the payments due to the file and suspend, as I await 70. The medicare payment went up for me and not my wife since hers is deducted for her SS payment. As I see now the CPI appears to be low for 2016 and if I wait till my April 2017 birthday (70). I would most likely get another increase on Medicare Payments. Am I ahead or should I file in Nov. to lock in the ( . . . Read More

Category: Medicare
Posted: Jun 24 2016 - 10:00am

Will I Get Hit With the Earnings Test After I Retire at 63?

Dear Larry,

I'm 63, working full-time, and am wondering if I retire and file for SS benefits this year on July 1, are my monthly social security benefits reduced during the remainder of the year because of income generated prior to retiring?

Cheers, Tom

Dear Tom, If you don't earn anything after you retire, Social Security will apply a monthly earnings test after you start collecting your benefits and you won't be hit by the Earning Test. They have this special monthly earnings test in the first year you start collecting your retirement benefits, which they call your . . . Read More

Category: Earnings Test
Posted: Jun 24 2016 - 9:30am

Can My Disabled Child Collect If I Don't Take My Retirement Benefit Early?

Dear Larry,

I am about to apply for SSDI for my adult disabled daughter on my work record (disabled before age 22 and only 7 quarters of her own Soc Sec credits). I am 64 and have not filed for Soc Sec. I am currently planning to defer filing for Soc Sec till age 70 (based on your book and new rules that preclude me from filing and suspending). Do in need to be receiving Soc Sec before my daughter can receive SSDI on my earnings record, or can I file now before filing for my own Soc Sec?
P.S. Great book... Easy to read and comprehend. Many thanks. Vic

Dear Vic,

I . . . Read More

Category: Child Benefits
Posted: Jun 24 2016 - 9:00am

Will the Government Pension Offset Lower My Retirement Benefit?

Dear Mr Kotlikoff:

Yesterday I had an appointment with my local social security office in Everett, WA to file for my retirement benefits. I am 67 and newly retired from six years working for Snohomish County Fire District1 as a facilities coordinator keeping 12 fire stations put together for 200 fighter fighter serving the largest urban fire district in Western Washington. That job earned me a small state pension. I was told something called the Government Pension Offset(GPO) is going to reduce my monthly social security check by 66 cents on every dollar received in state pension. . . . Read More

Category: Non-Covered Pension - WEP / GPO
Posted: Jun 24 2016 - 8:45am

When Should I File?

My husband is four years younger than me, and has been the much higher wage earner. When I turn 66, do I apply for my own full benefits first, then apply for spousal (which 1/2 of his would be greater than mine) when my husband retires?

Hi,

You certainly can do that, and it may well be the best choice for you. There are many other considerations and options involved, however, so you may want to consider running the maximization software available on this website.

Best, Jerry

Category: Filing Strategies
Posted: Jun 23 2016 - 11:00am

When Should I Start Taking Benefits?

1)Single 60 year old male.
2) Never married.
3)Parents dead.
4)No dependents in the past nor likely in the future.
5) Estimated monthly social security payment at 66 $1718.
6) Estimated monthly social security payment at 62 $1232.
7) Currently receive a $637 monthly payment for life with no adjustments for inflation.
8) Have not worked a full-time job nor much part time work since age of 48(2004).
9) $500,000 in savings with 80% in tax deferred accounts.
10) Estimated age of death 95.

Is the best plan to . . . Read More

Category: Filing Strategies
Posted: Jun 22 2016 - 6:30pm

Is My Wife Eligible Even If She's Not A U.S. Citizen?

I'm about to collect social security benefits. Is my non-resident Canadian citizen spouse eligible for benefits based on my contribution.

Hi,

Yes, provided that she meets all of the eligibility requirements, such as age (at least 62) and marriage duration (at least 1 year).

Best, Jerry

Category: Eligibility For Benefits
Posted: Jun 22 2016 - 6:15pm
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