Q & A
Does the “IRMAA” income rule to Medicare Part D affect you?
Full question: I am 68 and have been on Medicare for three years with the same $0 premium Medicare Advantage HMO that has Medicare Prescription Drug plan included, but recently I received a letter from Social Security stating that I will…
I am a 30-year-old widow receiving Social Security survivor benefits because my young children receive benefits through their father’s work record. If I returned to work, would it lower my benefits?
Answer: It might, depending on the amount you earn because of the annual earnings test. Survivor benefits to a widow or widower of any age can be paid if a child of the deceased, receiving Social Security survivor benefits and under…
I am 50 years old, and I just learned that Social Security stopped mailing the annual benefit estimate to people. My neighbor told me that I have to set up an account online if I want to get the information. I suppose I could visit the office to get the estimate. Other than saving me the time to wait in line for the estimate, what are reasons should I set up a Social Security account?
Answer: Even if you are not receiving Social Security benefits, you can access your personal account information online. This includes viewing your actual earnings record. The earnings posted to your record are used to compute your future benefits, so you want to…
I am CSRS and on the verge of retirement with 40 years at age 66. I do not have 40 qualifying quarters for Social Security entitlement. My former spouse will be getting a portion of pension. She is Social Security-qualified. Will her Social Security payments be offset by the amount of my pension she receives because of the windfall elimination provision?
Answer: Your situation will have no effect on her earned Social Security benefit. However, because you’ll be receiving an annuity from CSRS, a retirement system where you didn’t pay Social Security taxes, any spousal Social Security benefit to which you would…
I was honorably discharged from the Air Force in September 1992 under the Voluntary Separation Incentive program. I had 16½ years of service. I have received VSI payments each year since, and am due about 12 more payments. Can I buy back my military time and retire at the end of the year with 30 years of service (16½ military plus 13½ civilian)?
Full question: I was honorably discharged from the Air Force in September 1992 under the Voluntary Separation Incentive program. I had 16½ years of service. I have received VSI payments each year since, and am due about 12 more payments. In…
My mom is in a nursing home because she needs more care than I can give her at home. After next month, she will have only her IRA to use for payments. She gets $471 in Social Security as her only income. This pays for her telephone, bills, going to dinner or a movie with a friend on the weekend, and other miscellaneous expenses. I was told when her money is under a certain amount, Medi-Cal will pay for her nursing home care. Before this happens, do we have to break her IRA to use to pay for the nursing home, or can Medi-Cal take over before that? Also what happens to her Social Security and any savings she has?
Answer: It’s good that you wrote us because many people in your mother’s situation would simply cash in their IRA or other retirement accounts when they don’t need to. Under the eligibility rules for Medi-Cal skilled nursing home benefits, your mother,…
In 1999, I voluntarily switched from CSRS to FERS after 22 years of CSRS service. Since 1999, I have been covered under FERS and paying Social Security. I plan to retire this year at age 67 after 36 years of service. I’ll have accumulated 54 calendar quarters of substantial and maximum earnings. At the time I elected to transfer from CSRS to FERS coverage, I was told that I’ll be exempt from windfall elimination provision deduction from Social Security benefits and that my spousal Social Security benefits will not be affected by the government pension offset. Is this correct?
Answer: What you were told was half-right. Because you will have been covered by FERS for a minimum of 60 months, you won’t be subject to the government pension offset. However, you will be affected by the windfall elimination provision if…
I retired this past January from the U.S. Postal Service and am wondering what to do with my TSP [Thrift Savings Plan]. … Is taking my TSP in one lump sum a smart or dumb move?
Full Question: I retired this past January from the U.S. Postal Service and am wondering what to do with my TSP [Thrift Savings Plan]. I don’t what to touch it until I am at least 66, which is a year and…
I am a 52-year-old widow of an employee who died while employed. He was 55 years old with 25 years under FERS. Am I now entitled to the special retirement supplement until age 60 if my earned wages are under the Social Security limit?
Answer: Yes, because you are entitled to a spouse survivor annuity, are under age 60, are entitled to Social Security survivor benefits at age 60 based on your late spouse’s employment, and aren’t presently eligible for any other Social Security benefit…
My husband (65) is retired after over 30 years with the Postal Service. He recently went to apply for Social Security benefits and was denied because he was told that he was minus a few quarters and would have to go back to work to earn those quarters because he worked under civil service all those years. Is this true? Will he have to find a job at his age?
Answer: Yes, if he wants a Social Security benefit. However, he needs to understand that if he does become eligible for that benefit, it will be affected by the windfall elimination provision. The WEP reduces the Social Security benefit of…