Q & A
Should I Claim Early and Invest in the Market?
Full Question: Thanks for your most informative book. I’m 60 now and have been studying the file and suspend until 70 approach. During an office discussion with a colleague, he explained the “file at 62 and invest what you receive from…
To whom can I dispute an unfair decision by Medicare? Upon retirement, I moved to Mexico — to live a more affordable life with dignity, not to lie on a beach in some resort. I didn’t sign up for Part B since one cannot use Medicare in Mexico. I had little income, and couldn’t afford to pay the premium for something that was of no use to me. When I returned to the states seven years later, Social Security slapped on a penalty for each year I hadn’t paid the premium. Unfortunately, my retirement and Social Security benefits place my income level just barely above the acceptable level in New Mexico to have the premium forgiven. To be able to pay the Part B premium plus the penalty I would have to, at age 71, find employment.
Answer: The restatement of Medicare’s punitive rules for people who live overseas without Medicare and then come back to this country is accurate. I sympathize with her and all like her who are only seeking a decent life during their retirement…
If Medicare Part A is supposed to be “free,” why is the government deducting $200 per month for my Medicare? It is my primary insurance.
Answer: I need to know more to give you a definitive answer. But, if the deductions are coming out of your monthly Social Security payments, my guess is that they are for your monthly Part B premiums. While Part A is…
I turn 65 in October of 2015. I plan to at least work through age 67. I have health insurance while I “work.” I plan to not begin taking Social Security until I turn 70. Do I pay for Medicare part B until age 70 and request paying taxes on Medicare benefits?
Answer: You do not own taxes on your Medicare benefits so let’s take that issue off the table right away. When you stop working at age 67, you probably will need to enroll in Medicare and begin paying whatever premiums…
My mother-in-law was born outside the U.S. but recently became a U.S. citizen after living here legally for several years. She has not worked in the U.S. and so is not eligible for Medicare. Her husband worked for less than 2 years only in the U.S. She is now 68. Can you please educate us about the options available to her? Is she eligible for Medicare, if so how do we obtain it?
Answer: If they have lived in the U.S. continuously for the past five years, every U.S. citizen or legal resident is eligible for Medicare when they turn 65 or become disabled. The relevance of working at jobs where Social Security payroll…
I am about to turn 65. I work for a state university in Kansas with a good group health plan. I don’t plan to retire. I spoke with our benefits office and with Social Security. The only benefit to signing up for Medicare Part A appears to be that it could pay part of a deductible for a hospital stay. Here’s my question: How high does my employer’s deductible need to be to make joining Medicare Part A worthwhile? How do I make the appropriate cost-benefit calculation?
Answer: It’s not clear from your question whether you do or do not pay Social Security payroll taxes for your job. However, in either case, there’s really no cost-benefit analysis required. If you are not qualified to someday claim Social Security benefits,…
I am a 67-year-old male who is currently not working. I am a U.S. citizen. I applied for and then suspended my Social Security benefits last year when I turned 66. My plan is to wait till I turn 70 to restart my Social Security benefits. In my early part of my life I was working 20 years for the government in my native country in Romania. Then I moved to the U.S. I was employed 20 years for different companies and paid Social Security taxes. For my 20 years of work in my native country I am entitled to get a pension of about $160 per month. For my 20 years of work in the U.S. I will get about $2,100 per month from Social Security. My question: How will my $160 pension benefit from another country affect my Social Security benefits when I turn 70 and start getting U.S. benefits? Will it be diminished? If yes, how much?
Answer: To determine if your Social Security benefits will be reduced — because of what’s called the Windfall Elimination Provision — you’ll need to answer a series of questions related to your foreign pension and your Social Security benefit, says Brian…
I am two years older than my wife and the higher lifetime earner. Our Social Security plan is for me to delay my benefits but take spousal benefits when my wife reaches full retirement age (FRA) in three years, then switch to mine at age 70. Because my wife is 63 and wants to start her benefits, how will her start of benefits affect the spousal benefit I will receive? I think I will receive 50% of her FRA amount, but if she starts early, will it be 50% of that lower amount?
Answer: Congratulations on discovering a great strategy for you both, says Andy Landis, president of Thinking Retirement in Seattle and author of Social Security: The Inside Story, 2014 Edition: An Expert Explains Your Rights and Benefits. If you file for your spousal…
Is it possible for me to refile after going back to work to see if I can increase my Social Security benefit? Also, is it possible to claim spousal benefits on my ex-spouse’s record? I was six weeks away from being married for 10 years. And, I want to piggyback my Social Security with a pension from Canada. What are some ways to increase my benefits?
Answer: If you are already receiving Social Security benefits and you decide to return to work, there is no need to refile an existing claim to “potentially” receive a higher benefit amount, says Stephen Stellhorn, the author of Navigating the Maze of…
If I wanted to make a withdrawal from my IRA, would that affect my Social Security? Would that be considered income that could affect my social security, i.e., reducing my monthly Social Security?
Answer: IRA withdrawals do not reduce Social Security benefit amounts or cause benefits to be withheld as might be the case if you received wages prior to your FRA. However, taxable IRA withdrawals do increase income which may affect how much…