Is Your System Detailed Enough To Account For The Pensions I Receive And The Effects Of WEP?

Nov 9 2019 - 5:00pm

Hi, I am about to try to calculate our best SS strategy. We are both retired 69/68 old. I worked all my life and my partner raised the family.
We do receive German SS equivalent government pension from our years when we worked in Germany. I also receive a corporate pension from my time in Germany.

From our work in the US we have rolled over my 401K into an IRA and I have accumulated SS pension benefits (my partner has no accumulated SS pension benefits. We have not applied for SS benefits, only medicare.

Is your system detailed enough to take account of these 3 types of pension income streams and their effect on the WEP and how it effects SS and/ or German benefits?

Thanks!

Hi,

Yes, our software (https://maximizemysocialsecurity.com/purchase) is programmed to calculate the effects of the Windfall Elimination Provision (WEP) on U.S. Social Security benefits. You may want to strongly consider using one of our software options to help you determine the best way to maximize your benefits.

It does sound like the WEP provision will likely have an impact on your U.S. Social Security benefit rate unless you meet one of the exceptions to the provision. About the only exception that it sounds like you might meet is the 30 years of substantial earnings exception. Under that exception, you would be exempt from any WEP reduction if you have at least 30 years of U.S. Social Security covered earnings that were considered to be substantial by WEP's definition. For more information on WEP and its exceptions, refer to the following Social Security publication: https://www.ssa.gov/pubs/EN-05-10045.pdf.

WEP wouldn't have any effect on your benefits from Germany, though, and as far as I know your U.S. benefits wouldn't affect your German benefits either. However, my expertise is limited to U.S. Social Security benefits, so you may want to double check with Germany's program to find out if drawing your benefits from the U.S. will have any impact on your German benefits.

Best, Jerry