Q & A
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…
What’s the most effective way for a married couple to take Social Security benefits to maximize the survivor benefit and also receive income early?
Answer: If you need income as soon as possible, one strategy to follow is for the lower-earning spouse to file for a reduced benefit at age 62 on that individual’s work record and the higher-earning spouse to wait until age 70…
Are SSI benefits subject to federal income tax?
Answer: No. However, if you also receive Social Security benefits, those benefits may be subject to income taxes. Learn more about SSI by visiting the publications library at http://www.socialsecurity.gov/pubs and selecting the “SSI” topic on the left. Source: http://www.publicopiniononline.com, October 17, 2013 Notice:…
If my spouse or ex-spouse dies before filing for benefits based on his or her own work history, how does that affect my widow(er)’s survivor’s benefit?
Answer: If your spouse dies prior to his or her FRA and had not yet filed for benefits, generally the surviving spouse would be eligible for up to 100% of the benefit the deceased spouse would have received at his or…
If I delay taking benefits until 70, how long before I break even versus taking benefits early?
Answer: For most people the breakeven age should not be a driver of a strategy for taking Social Security benefits. Since a couple age 65 has about a one in four chance that one spouse will live until age 95,* chances…
My husband and I are both 62. If I file and suspend when I turn 66, can my spouse, who is six months younger than me, draw spousal benefits then or does he have to wait six months until he turns 66?
Answer: Your spouse must wait until age 66, his full retirement age (FRA), before he can file a restricted claim for spousal benefits. Source: The Monterey County Herald – September 11, 2011 Notice: The opinions expressed in these postings are the…
Where does Social Security money come from?
Answer: The Social Security Administration has three basic sources of income: payroll taxes, federal income taxes on a small portion of SSA benefits and interest paid to the SSA trust funds. Quoting from the Financing section of the recently published Fast Facts &…