Q & A
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…
I invested in my former place of employment, a privately held company. They recently announced that they have filed for an IPO. Once the company goes public, am I taxed at a capital-gains rate or at my full income-tax rate? Also, as a former employee, can I withdraw the funds immediately, or is there a waiting period?
Answer: The Initial Public Offering does not trigger any taxation. Taxes only apply when you sell the shares. Any gains over your cost-basis are taxed as capital gains. If you sell shares you have owned for less than 12 months for…
I’m 67. I retired at 62 after 34 years and elected to begin taking my SS benefits. My wife is 65 and just retired after 21 years of work. She hasn’t taken her SS benefits yet. Is there a smart strategy (I hear about spousal strategies) to employ here, or did I eliminate strategic moves by having taken benefits at 62? I’ve tried to research this, but can’t seem to get a definitive answer. thanks for your consideration.
Answer: Your filing eliminated your ability to file a restricted application for only spousal benefits off your wife’s record. You are still eligible to suspend your benefits. If your benefit is larger than hers, this may be a good move because…
What is the Medicare Part D late enrollment penalty?
Answer: Medicare Part D is the prescription drug component to Medicare. If you enroll in a Part D plan after your 65th birthday, as you have been covered by group health insurance up to that time, you have a very good…
What are the best Medicare coverage options for retirees who travel a lot?
Answer: The best Medicare options for retirees who travel extensively depend on your destination. Let’s start with a quick review of the different coverage choices Medicare offers beneficiaries today. One option is Original Medicare, which has been around since 1966 and…
If I get Social Security disability benefits and I reach full retirement age, will I then receive retirement benefits?
Answer: Social Security disability benefits automatically change to retirement benefits when disability beneficiaries reach full retirement age. In most cases, the payment amount does not change. The law does not allow a person to receive both retirement and disability benefits simultaneously…