Q & A
I am a 51-year old FERS employee with 28 years of service. Because of my declining health, I plan to resign and take a deferred retirement. With more than 20 years of service under FERS, I can begin receiving a deferred annuity at age 60. Can I receive a reduced annuity at age 56, my minimum retirement age? If so, will the reduction be 20 percent or 30 percent? In other words, will I be penalized 20 percent (5 percent per year for four years) between the ages of 56 and 60, or 30 percent for the six years between the ages of 56 and 62?
Answer: The only way you could receive a reduced annuity at your MRA would be if your agency was authorized to offer early retirement under the Voluntary Early Retirement Authority and yours was one of the positions included in the offer.…
I am CSRS Offset. I’ve been paying into Social Security for many years and I plan on retiring before I’m 62 years old. Once I retire, will I stop paying into Social Security? Also, will I be eligible for the special retirement supplement before I’m eligible to collect when I’m 62 years old?
Answer: Yes, you’ll stop paying into Social Security when you retire. Those deductions are only taken from wages and self-employment, not other kinds of income. No, only FERS retirees are eligible for the special retirement supplement. Source: Reg Jones, FederalTimes.com –…
What’s the best way to find out if I might be eligible for SSI?
Answer: Our online Benefit Eligibility Screening Tool will help you find out if you could get benefits that Social Security administers. Based on your answers to questions, this tool will list benefits for which you might be eligible and tell you…
Who is eligible for Supplemental Security Income?
Answer: People who receive SSI are age 65 or older, blind or disabled with limited income and resources. Go to www.socialsecurity.gov for income and resource limits. The general fund of the United States Treasury makes SSI payments. They do not come…
My parents recently moved into a retirement community and they are signing their house over to me. Can I still get Supplemental Security Income (SSI) or will homeownership make me ineligible?
Answer: You can own a home and still receive SSI as long as you live in the home you own. In most cases, when determining SSI eligibility we don’t count as a resource the home you own and live in or the…
How soon can I apply for a Social Security number as a J-1 exchange visitor working in the United States?
Answer: Before you apply for a Social Security number and card, we suggest you: Be in the United States for at least 10 day; and Report to your program sponsor (You must be in active status for at least two…
How can I get a new Medicare card?
Answer: If your red, white and blue Medicare card is lost, stolen or damaged, you can request a new one at www.socialsecurity.gov. However, you can use our online application only to request a Medicare card. If you need a Medicaid…
Calculating the “break-even point” on early Social Security sign-up–how do you factor in the probabilities?
Full Question: I am continually concerned that you and others keep telling people who are eligible for Social Security to delay taking the benefits. Here is how I figure it. I take my Social Security benefit at $1,230 a month. At…
Do I have to pay taxes on my annuity if I went off work on disability retirement?
Answer: Yes, you do. Source: Reg Jones, FederalTimes.com, January 22, 2013
My wife and I are going to do an addition to our house. We’re both 45 years old and have plenty of equity to support $400,000 of borrowing. I was thinking of borrowing from our 401(k) plans. We could pay the interest back to ourselves. My wife is concerned that we will lose the tax deduction and, if something happens, we have no retirement. What are your thoughts?
Answer: Listen to your wife; she’s clearly a wise woman. Borrowing from a 401(k) plan almost never makes sense. It’s an emergency step, not something for daily life. As a practical matter, the interest rate on home equity credit lines…