A WEP related question, please. I worked overseas for an international organization many years and accumulated a pension that pays more than 50k annually. The pension is subject to U.S. taxes. During my time of overseas employment, I did not pay into social security. Prior and current work has qualified me to receive Social Security which I am eligible to draw on now, or postpone for a few more years when I reach FRA or 70, etc. Will my SS payment be subject to a WEP adjustment? My financial advisor said no; and, I think she is wrong.

Hi,

It certainly sounds to me like your non-covered pension will cause your Social Security retirement benefit rate to be calculated using the less generous WEP calculation formula. There are exceptions to WEP, but it doesn't sound as though any of them would apply in your case unless you have at least 30 years of substantial Social Security covered earnings ((https://www.ssa.gov/pubs/EN-05-10045.pdf).

The maximization software available on this website handles WEP computations, so you may want to use it to help you determine your best filing strategy.

Best, Jerry