Q & A
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…
I can’t find my Social Security card. How can I get a new one?
Answer: First, consider whether you really need a new card. You need to apply for a replacement Social Security card only if you don’t know your Social Security number or if you need to show your card to a new…
I may have to retire soon for health reasons. If I default on my unsecured credit-card debt, can my Social Security benefits or pension be garnished?
Answer: I’m sorry to hear about your health issues — and I’m equally sorry to hear that you haven’t saved enough money to pay your debts. My guess is that, given your forced retirement and debt issue, you will also have…
I’m avoiding a 20% penalty by not starting my SS payments early at age 62. Am I doing the right thing??
Answer: The Social Security reduction for early retirement is roughly actuarially fair. That is, if beneficiaries live to normal retirement age they receive the same dollar value whether benefits begin at age 62, at full retirement age or any month in…
There is a cap on how much of your income is subject to the Social Security tax. How much is that cap this year? Has there been any serious discussion lately about eliminating that cap and subjecting all income to Social Security taxes?
Full question: There is a cap on how much of your income is subject to the Social Security tax. How much is that cap this year? Has there been any serious discussion lately about eliminating that cap and subjecting all income to…
My son will be 18 in a few months. He is disabled since birth, lives in a group home, and receives Supplemental Security Income (SSI). I am Representative Payee for his benefits and my wife and I recently were appointed as his guardians. For SSI, is there anything that I need to do prior to him becoming 18?
Answer: Even though administered by the Social Security Administration, Supplemental Security Income (SSI) is a very different program from Social Security. SSI pays benefits to disabled adults and disabled children who have limited income and resources. SSI benefits also are payable…
My wife and I recently turned 62 and signed up for our Social Security. We plan to sell several pieces of property we own in order to have some money to supplement our Social Security. But a neighbor told us that this would count as earnings, and because it’s more than $11,520, we will lose our Social Security. Is he right?
Answer: No, he’s wrong. The law says if you are under your full retirement age, we must withhold $1 from your benefits for every $2 you “earn” over $11,520. And in this case, “earn” refers to wages from a job or…
I soon will be 60 years old and am afraid I will not qualify for widow’s benefits at that time. I was married to my husband for many years. But four years after he died, I married another man. That marriage was later annulled because of fraud on his part. Did that mistake mess up my chance to get my first husband’s Social Security?
Answer: Don’t worry. When you turn 60, you will be eligible for widow’s benefits on your first husband’s Social Security record. The fact that your second marriage ended (or because it was annulled, it legally never happened) is the key. The…