Q & A
Are you eligible for Medicare?
Answer: One common misconception is that everyone can enroll in Medicare once they reach age 65. While Medicare is health insurance for people 65 or older (along with younger people with certain disabilities and end-stage renal failure), you must meet certain requirements to…
My wife and I have a number of retirement accounts. As we are of age, we are required to withdraw a minimum amount from each of them. Concerning my wife’s accounts, is it sufficient to withdraw an amount equal to the minimum for all her accounts from just one account? My reason for asking is that one account gets a high return and the other has a very low return. Further, would a large withdrawal (based on my required withdrawals) from her account cover the withdrawals that I am required to make, or must I withdraw from my accounts alone?
Answer: You can take a single distribution from one of your wife’s individual retirement accounts to satisfy her total required distribution — provided they are all IRAs and not 401(k) plans — but you can’t double up as a couple, because…
I am 67 and retired this year. I am collecting Social Security spousal benefits on my husband’s work record, having deferred mine as I was working. Now that no income will be coming in, will that reduce the amount used by Social Security to average my income? Should I start the benefits now or should I wait until age 70 to collect? I do not need the income right now.
Answer: If you don’t need the income, you can boost your benefits substantially by waiting until age 70 to collect. For each year past full retirement age that you delay, benefits rise by up to 8 percent, depending on your year…
I want my Social Security retirement to start with January. When should I complete my application?
Answer: Now is a good time. Use the SSA Retirement Planner tools to be sure of your plans and then use the online retirement application. A SSA representative will review the application and might call you. If you want to speak to a SSA representative when…
My husband turned 65 in June. The Social Security Administration told him he doesn’t have to apply for Medicare if he has health insurance. He’s currently covered by my employee health insurance, and I’ll be working several more years. But I’m concerned he may have to pay a penalty if he waits until I retire to apply for Medicare. Was he given incorrect advice?
Answer: Not necessarily. The correct advice depends on the number of people working for the employer whose plan currently covers him. When you’re covered through an employer with 20 or more workers for whom you or your spouse is actively working, that…
If the higher earner spouse waits until 70 to collect Social Security, can the lower earner spouse collect 1/2 of his higher benefit amount?
Answer: A spokesman for the Social Security Administration said a retiree’s spouse will not receive half of the increased benefit. A widow(er)’s benefit, however, will be calculated using delayed retirement credits. Source: marketwatch.com – October 4, 2013
I am under CSRS. My service computation date is Nov. 13, 1983. I have 34 Social Security quarters paid. Can I pay the remaining Social Security quarters in lump sum, or do I have to work to contribute? Will this be to my advantage?
Answer: The only way you can get Social Security credits is through earning from wages or self-employment. If you earn six more credits, you’ll be entitled to a Social Security benefit. However, because you are receiving an annuity from a retirement…
Multiple Questions Re: Rules on bank account levies
Question: What form do I need to protect my bank account, which only receives direct deposits from Social Security and disability payments, from a bank levy? Question: If a collector garnishes my account for $3,000 that I owe, and I only had…
I am a young working professional making monthly contributions into a 401-K account. My spouse is vested in his company and will have a comfortable pension at the time of retirement. I have been following the debate about the long-term viability of Social Security. Why is this so important? Shouldn’t we all be responsible for our future financial well-being?
It might be helpful to provide you with background surrounding the original intent when the Social Security Act was signed into act on Aug. 14, 1935 by President Franklin Roosevelt. The Act actually contained provisions to cover a wide range…
My grandmother recently died and left me about $5,000 in cash. Will this affect my SSI?
Answer: Yes, it most likely will. We count the money as income in the month you receive it, which means you will not be eligible for a Supplemental Security Income payment the month you receive the $5,000. Because there is a…