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Why is Social Security so confusing? - MSN.com
Social Security has over 2,700 rules! To make it even more confusing, the SSA website has over 110,000 pages! Then, to make it even more challenging, the rules for different topics aren’t always located in the same section. You have to read more than one section of the website to get a complete understanding of the topic you are researching.
One of the more unknown problems is overpayments. Each year, millions of Social Security recipients are notified that they were overpaid, and you may not find out for years. If you realize you have been overpaid, set the money aside and do not spend it. Do not send the overpayment back to Social Security either until you receive the overpayment notice, or they won’t know how to apply it.
Another one of the more complicated area pertains to widow(er)s. This is another area where someone can lose out on benefits unknowingly. Widow(er)s have a couple of options available to them when they apply for their survivor benefits, especially if they haven’t started their own benefit yet. You can start your survivor benefit at age 60, versus age 62 for your retirement benefit. But is it the right choice? If you start your survivor benefit at age 60, it will be reduced by 28.5%. If you start your retirement benefit at age 62, it will be reduced by up to 30% depending on your full retirement age (FRA). If you haven’t started your own benefit, and your deceased spouse’s (or ex-spouse of at least 10 years) is always going to be higher, you may want to consider starting your own benefit first. Your survivor benefit will reach its maximum at your FRA, or maybe sooner if you are affected by the “Widow Limit.”
Now you want to know what the “Widow Limit” is? It was put in place to protect the lower-earning spouse if the higher-earning spouse should file for their retirement benefit early, such as at age 62. You can actually become eligible for your full survivor benefit before your FRA. For example, if you were born in 1962, you will reach the maximum survivor benefit at age 62.7 months! You are guaranteed 82.5% of your deceased spouse’s Primary Insurance Amount (PIA), which is equivalent to what they would have received had they waited until their FRA to collect.
However, even if you reach your maximum survivor benefit early, you will still be subject ot an earnings limit until you reach your FRA. The earnings limit for 2025 is $23,400. If you go over, Social Security will reduce your benefit $1 for every $2.
With over 2,700 Social Security rules, there is no way to cover them in one article. To read the complete article by Diego Perez Morales on MSN.com click here …..
When making one of the most important decisions of your lifetime, as it will affect the rest of your life, I recommend you speak with an accredited Social Security Advisor. AMAC Foundation has a staff of accredited advisors ready to assist you. Contact them at (888)750-2622 or email ssadvisor@amacfoundation.org.
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