Larry

2 basic questions
I am 72 and have been collecting SS since age 66.No Problem. I worked overseas for at least 25 years an fogot I had mone in the California State Teachers retirement fund now worth 90 k.
Can I withdraw this money without affecting my current SS benefits?

One More...I and my wife now live in Guatemala. She also collects S benefits as wife. When we both signed up for SS we declined part B (Part A we have) as we could not use it here in Guatemala...since then my wife has become ill and will return to US. We are both low income.Would it be best to ty for Medical *California is our state...or sign up for Part B?

Thanks Patrick

Hi Patrick,

If your wages were exempt from Social Security taxes while you were contributing to the California State Teachers Retirement Fund, both your and your wife's Social Security (SS) benefits will likely be reduced if you begin receiving a pension, or a lump-sum in lieu of a pension, from your non-covered work. This is due to Social Security Windfall Elimination Provision (WEP). See this link for more info: https://www.ssa.gov/pubs/EN-05-10045.pdf. If there is a way for you to simply withdraw ONLY your contributions from the fund, that would not cause a reduction in your SS benefits, but I don't know if that would be in your financial best interest. You may be better off taking the pension, even if it reduces your SS benefits.

If you qualify for Medi-Cal on the basis of financial hardship, it would save you from paying the premium charges for Part B of Medicare. I wouldn't think you'd be eligible for Medi-Cal if you have a potential $90K available to you from the teacher's pension fund, but I don't really know the eligibility rules for either of those programs.

If you and your wife sign up for Part B of Medicare, you will likely have to pay a 10% premium surcharge for each year that you did not have Part B coverage from the time you turned age 65 until the time you sign up for it. Unless you were covered by a qualified employer group health plan, if you sign up for Medicare more than 3 months after reaching age 65 you can only enroll during a general enrollment period (GEP), which is from January through March of each calendar year. And, if you sign up in a GEP, your Part B coverage does not start until July 1st of the year you enroll.

Best, Jerry