NSSA - National Social Security Advisor
If you are reaching FRA this year, how much can you earn before turning FRA?
$51960. Anything above this you will have $1 for every $1 earned of your SS earnings withheld
What year did you have to be born before to be able to apply for a restricted application?
1/1/1954
Bob applies for SSB. His PIA is $2500. How much is his 16 year old sons benefit?
1250
How long must you be married to get spousal benefits?
12months, and your partner must be collecting benefits for you to receive the spousal benefit.
Mary beings SSB at age 68. Her FRA is 66. How much is her delayed retirement credits?
16% increase
How much is the family maximum?
175% (approximately)
What year was Social Security created?
1935
How do you figure out what your FRA is?
1937= age 65 Add 2 months for every year 1943-1954 = age 66 add 2 months every year 1960 and later = 67
What year was the COLA adjustment added?
1970
What year did SS become taxable?
1980
What is the marriage requirement for survivor benefits?
9 month marriage unless the deceased was in the military or the death was unexpected
How long must you be married to collect survivors benefits?
9 months unless they passed away from an accident or military survice
Disability
Disability must be expected to last 12 months Of the last 10 years you had to work 5 of them Benefits not paid for the first 5 months You can only claim this if you are under FRA. Once you reach FRA it will automatically switch to a normal retirement benefit.
Family Maximum
Does not apply to ex spouses 3 people are more drawing from your benefits (worker, spouse, child) Limit varies between 150-180% of your own benefit payment
What is wage indexing?
EARNINGS ARE INDEXED FOR INFLATION THROUGH AGE 59. After age 60 it's not indexed. The SSA looks at your past wages and adjusts them to today's standards. They do this by looking at the average wage today vs the year they are comparing. Essentially adjusts for COLA. An individuals earnings are always indexed to the average wage level 2 YEARS PRIOR to the year of first eligibility. A person retiring at age 62 in 2022, their earngins would be indexed to the average wage for 2020. Earnings in 2020 and later would be taken at face value.
What is Claim and Suspend?
File for your benefits, but suspend payment. You still earn delayed credits but your spouse/children can file off of your application, so THEY can get $. This is no longer available (was done in 2016).
Sue has been a school teacher her whole life, her husband has a SSB of $2,000. What provision will affect her?
GPO
Who received the first SS payment?
Ida May
Mary turns age 62 on June 2nd. When can you start taking benefits? When would she receive her first payment? How much reduction would she take?
June becuase she obtained age 62 on June 1st. She would be paid on the 2nd Wed of July (one month behind). She would have the FULL 48 month reduction
Robert turns 62 on April 22nd. When is he eligible to start receiving benefits? When would he receive his first check? If he started then, what would be his reduction, how many months?
May 1st. Checks are a month behind so the 4th wednesday in June. 47 month reduction because he would start in May which would mean he is 62 and one month
What are the rules around an independent divorce?
Must be single Both must be aged 62 Married for 10 years must have been divorced for 2 years ex doesn't have to be drawing on benefits
How does the "Do Over" provision work
Must file to cancel SS within 1 year of starting. Must payback everything Can only do this once
Mary turns 66 on Sep 16th but has been collecting SSB since age 62. On Sept 14th she earned $250k. Does this affect her benefit?
NO, once you hit your FRA month, the AET (annual earnings test) no longer counts
What is SSI?
Needs based program Max benefit of $841 but other income can affect this
After you reach FRA, how much can you earn before it affects your SS payment?
No limit!
Do you automatically get Social Security?
No you HAVE TO APPLY.
Can both spouses utilizing the restricted application?
No, only one because the other must be receiving payment
Mary turns 66 on Sep 1st but has been collecting SSB since age 62. On Aug 14th she earned $250k. Does this affect her benefit?
No, she obtained FRA on Aug 31st, so earnings in August technically fall in her FRA month
Does deemed filing apply to survivor benefits?
No, you can take these benefits first and delay yours and get delayed credits
If you're in jail do you receive SSBs?
No, you're not supposed to
If you are born on the 1-10th of the month when are you paid?
On the 2nd Wed of the month
If you are born on the 11-20th of the month when are you paid?
On the 3rd Wed of the month
If you're birthday starts any day but the 2nd, what day do your benefits start?
On the first of the following month
What type of earnings are included in the earnings test?
Only EARNED income, so SS wages, W-2, self employment.
What is the PIA?
Primary Insurance Amount. How much you earn per month at FRA (not early and not delayed, its 100% of your benefits) This is what the reduction or increase is based on.
FRA age for folks born between 1943-1954
age 66
At what point can you file a restricted application?
at FRA
Age that a child can claim benefits
Up to age 18 or age 19 if they are a full time studnet.
Mary has a public pension from working as a school teacher but also has earned SSB from earlier jobs. What provision applies to Mary?
WEP
What is the Windfall Elimination Provision?
WEP - If you have 40 SS credits AND a pension. You still qualify for SS but your first bend point will be adjusted. The lowest the bend point can go is 40% and that will depend on your years of substantial earnings (the more years of earnings, the more your benefit will be).
Deemed Filing
Went into effect in 2015. Deemed filing means that when you file for retirement benefits, you are deemed to file for both spousal and worker benefits at the same time. Therefore, you cannot claim benefits on a spouse's record while waiting for your own benefits to increase. The deemed filing rules do not apply to Survivor or Disability benefits. Taking YOUR retirement early will also reduce the spousal benefit
If Bob earns $250k at the start of the year but he turns age 62 in August and starts collecting benefits. He earns Sept -$0 Oct - $1500 Nov - $2500 Dec - $750 Will his SS payments be affected?
Yes, but not for the $250k. They will do the monthly test now that he is retired and November is the only month he is over so that is the only month his payment will be affected. Late he will have 1 credit month which will later help reduce is reduction (make his benefit go back up!)
Is there a earnings test of survivoring spousal benefits?
Yes, if you're collecting benefits before FRA, you'll still be subject to the AET even if you are doing survivors benefits
If I am collecting SS payments and I am not FRA, I have earned income above the limit, is my spouse affected?
Yes, they will also have benefits withheld (it will include in the total $ that needs to be withheld)
Do you have to be single to collect survivor benefits?
Yes, unless you're over age 60, then you can remarry.
Can a surviving spouse file for survivor benefits at age 60 then switch to their own benefits as early as age 62?
Yes; deemed filing does not apply for spousal benefits
How long can you change your mind on your SS benefits?
You have 1 year to change your mind. You will have to repay all benefits you received. You can only do this once
What is the Lump Sum Death Benefit?
You have 2 years to file for it after your spouse passes away. It can be done at any age. It's like $200
Do you have to apply to SS or do you automatically start receiving it?
You have to apply
What are 4 rules to collecting divorce benefits?
You must still be single must be 62 years old had a 10 yr marriage Your ex must be drawing benefits
What is AIME? How do you calculate AIME?
Your Average Indexed Monthly Earnings. NOT what you actually earn a month. We have to calculate bend points after this. First take actual earnings and index them into todays dollars. Add together the highest 35 years divide by 35... divide by 12
Up to what of our earnings are taxed towards SS?
$147k (anything you make above that will not get taxed towards SS)
If you are under FRA, how much income can you earn before your SS check is effected?
$19560. Anything you earn above that, SS will withhold 50% of what you earn (meaning they will not pay you that $ in your SS check)
Bob passed away at age 67 and his PIA was $2100. How much will his wife receive if she starts collecting spousal benefits at FRA
$2100
Sue is collecting her own SSB of $1000, she began at age 62. Her husband passes away and he was collecting $3200. How much will Sue receive at her FRA?
$3200. It will not be affected by her filing early
John turns 62 on January 1st. When will he start benefits? When will his first check come? What will his reduction be? 47 or 48 months?
(obtains age 62 on Dec 31st) January 1st. 2nd Wed of February. 47 month reduction
If you earn $25k on January 1st and you die on January 3rd, how many credits did you earn? What if you die on July 1st? Dec 15?
1 credit, 3 credits, 4 credits
Sue begins receiving benefits on her own work record at age 62 and collects $750 (PIA = $1000). Sue becomes eligible for a spousal boost at FRA when her husband starts collecting. How much is Sue's total benefit? Husbands PIA is $2500 If Sue started collecting before FRA what would happen?
2500/2=1250 -Sues PIA which is $1000 = $250 (the boost), gets added to what she was already collecting. $750+$250=$1000 So she gets less than 1/2 the PIA because she started her own benefits early If she started collecting spousal benefits before she is FRA, the boost is also reduced
Largest % you can earn in Delayed Retirement Credits
32% if you wait until age 70. This depends on your FRA. If your FRA is 67 and you delay until age 70, then you get a 24% increase. If FRA is 66, then it's 32%. It's 8% each year.
Your PIA calculation is based off of your highest ___ years of earnings
35
How many credits can you earn a year? How much do you have to earn to earn 1 credit? Does it matter what time of the year you earned the money?
4 credits. $1510=1 credit Doesn't mater when you earned the money, you just have to be alive at the start of the quarter to earn the credit.
How early can you apply for SS?
4 months
How many months can you apply beforehand?
4 months beforehand
How many credits do you need? How many years is that? How many can you earn a year? And how much $ do you have to earn?
40 credits, about 10 years, 4 credits a year. 1 credit=$1510 or $6040 a year. You have to be alive for the full year to earn each credit. But you can earn all of the money in one day of the year.
If you're born on the 2nd of the month you get a ___ month reduction
48 month
If you are born on the 20th-end of the month when are you paid?
4th Wed
The most SS will reduce your check by (for WEP) by NO MORE than ____ of your Gov pension
50%
How far back can you get backpay?
6 months
How much backpay can you get through SS?
6 months of backpay paid as a lump sum.
How many months is a full reduction? If you have the PIA, what do you multiply it by to find the full reduction?
60 months (if starting benefits at age 62) or 70% of what they would have earned. So multiply PIA by .7
What age must you be to begin taking spousal benefits
62, OR, any age and caring for a child entitled to receive benefits on your spouse's record and who is younger than age 16 or disabled.
FRA for folks born before 1937
65
FRA for folks born after 1960
67
What age is the breakeven point between early and waiting?
78
each year you delay taking SS past retirement age, your benefit goes up by ____. When do you see the increase reflected?
8%, it is reflected in the following year, unless you've reached age 70 then the increase begins immediately.
Voluntary Suspension
Can suspend pmts at FRA Will start to earn Delayed Retirement Credits Anyone collecting on your record will also be suspended pmts.
What are some things you can do on SSA.gov
Check your benefit Check earnings record Request SS charge Change direct deposit Change address/phone number
Alice's husband passed away when alice was 52. At what age can she collect survivor benefits?
Age 60
At what age can you claim survivor benefits?
Age 60 or old, unless you are disabled or have a child under 16
What is a Restricted Application?
Allows you to file for your spousal benefit even if your own benefits would be higher. This allows you to continue to earn Delayed credits (so you can earn the full 32%). MUST HAVE BEEN BORN BY Jan 1954. This will no longer be applicable by the end of 2023
Voluntary Suspension
Allows you to return to earning the delayed credit of 8%. You can't suspend before your FRA Ex. You start drawing at age 62, atFRA you start delaying and you earn the credits off of the lower amount This affects everyone on their work record
What CPI index might they move to in the future?
CPI-E (elderly). It's still experimental
What CPI is used for COLA adjustments? How is it calculated?
CPI-W, you look at in inflation in the previous 3rd quarter vs current 3rd quarter. It's automatically adjusted. The largest part is housing (30% of the index)
When do you obtain your age?
The day BEFORE your birthday If you turn age 62 on May 19th, you will "obtain" age 62 on May 18th
What is the earliest age/month you can collect benefits?
The month you obtain age 62. Meaning you have to be age 62 for the whole month to start benefits. If you're born on May 19th, you will start benefits in June. If you are born on May 2nd or 1st, you can college in May. Benefits are reduced if you start collecting at age 62
Which benefits can you not file for online? (you must speak to someone at the SS office)
children and surviving spouse benefits
The family maximum does not apply to ______
ex spouses
Biggest factor in CPI-W
housing has the biggest weight (31%)
Can you remarry and still claim survivor benefits
if you're under age 60, no. If you're over age 60 you can remarry.
Can you receive SS checks in the mail?
no it has to be direct deposit
How much is the spousal benefit?
one half of the PIA
Hold Harmless Rule
protects your Social Security benefit payment from decreasing due to an increase in the Medicare Part B premium.
What type of earnings are NOT counted in the earnings test?
rental properties, IRA distributions, Investments, 401ks, lottery winnings
What day do you have to be born on to take a full 48 month reduction?
the 2nd of the month is the ONLY day
If you're born on the 9th of the month, when is your benefit paid?
the 2nd wednesday of the month
if you're born on the 15th of the month, when is your benefit paid?
the 3rd wednesday of the month
if you're born on the 23rd of the month, when is your benefit paid?
the 4th wednesday of the month
Define FRA
the age you can start earning 100% of your earnings (before its reduced, after its increased)
Are survivor benefits affected by the worker delaying or selecting early withdrawals?
yes
Can earnings after FRA be included in the AIME calculation?
yes, it's a rolling computation. Even if you're age 80, they will check if your new earnings are higher than your lowest earnings.
