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Retirement Discussions / Retired Fools
|Subject: Re: Collecting Social Security||Date: 3/28/2000 4:01 PM|
|Author: TMFPixy||Number: 3243 of 19483|
<<Under the new Social Security legislation being considered, is it true that a person (age 65+) now working full time earning $90,000 per year can apply for s.s. now, i.e. in March-April, 2000 (once the law is effective), and then receive the s.s. retroactively to January, 2000 and still continue working? >>
I can't speak to the retroactive payments of SS, but someone age 65 after the law is enacted can definitely apply for SS, draw those benefits, and continue work.
<<Does the new law contemplate still deducting ss from the person who still works making $90,000 earnings if he starts collecting ss benefits or will he get a double bonus (ss benefits plus the gain from no deductions [approximately $4,000 per year])?>>
If you work, FICA will be deducted from your earnings. However, your earnings could continue to replace lower earnings years used in the SS benefit calculation to increase that benefit slightly. Also, don't forget that at that level of income 85% of the benefit must be included as taxable income for the year.
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