Q & A
Social Security death benefits for children?
Full question: My daughter was on Social Security Disability when she died in July. I have legal custody of her two children, who receive a monthly survivor benefit. I was told they’re also entitled to the $255 death benefit, but we…
How does the “five-year rule” apply to people over age 59 1/2?
Full question: I converted my company 401K to a Roth 401K in 2012. I am 68 and since I own more than 5% of my company I understand I will have to take the RMD when I reach 70 1/2…
How is the spousal benefit calculated?
Full question: I plan to wait until I am 70 to collect Social Security. My wife is seven years younger and plans to collect the spousal benefit at 66, then take her Social Security benefit at 70. When she takes the…
What are the strategies for consolidating deferred comp. plans at the point of RMD?
Full question: I’m 70 and still working. I’ll be 70 1/2 this year and have IRAs and old 401k at previous employers. Is it too late to roll these retirement accounts to my current 401k to avoid RMD for this…
Another question on spousal benefit options and implications
Full question: I turned 63 last month and am receiving Social Security Disability benefits of $2,200 monthly. My wife is 73 and receives $1,000 Social Security monthly which covers all our expenses. My wife is in excellent health. My doctor gives…
How do I earn Social Security credits?
Answer: You earn Social Security credits when you work and pay Social Security taxes. We base credits on earnings. For example, you receive one credit for every quarter you earn at least $1,160 in 2013. Usually the amount you must earn to get…
What’s the best scenario for spousal benefits?
Full question: I am 60 years old with a USPS pension (CSRS). I have earned 40 credits with side jobs to collect Social Security at age 62. My wife is 56. Can I get Social Security using her work record to…
My dad receives Supplemental Security Income (SSI) benefits. He soon will be coming to live with me. Does he have to report the move to Social Security?
Answer: Yes. He should report any change in his living arrangements within 10 days. The change may affect his benefit amount. Also, we need his correct address so we can send correspondence when needed, even if he receives his payments electronically.…
My daughter is 19 years old. In her senior year of high school, she had an accident that paralyzed her. It doesn’t look like she will be able to work in the near future, and since she has never worked she hasn’t paid Social Security taxes. Can Social Security still help her?
Answer: Your daughter may qualify for Supplemental Security Income (SSI) benefits. SSI is a needs-based program paid for by general revenue taxes and run by Social Security. It helps provide monetary support to people who are disabled and who have not…
Last year, I started working as a self-employed Web page designer. What must I do to get credit for my income with the IRS and Social Security?
Answer: You report your net earnings for Social Security when you file your federal income tax return. Net earnings for Social Security are your gross earnings from your trade or business, minus all your allowable business deductions and depreciation. If your net…