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Author: ggovro One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19221  
Subject: Social Security question Date: 10/27/2008 5:02 PM
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I retired from Wells Fargo this past July at age 62, after most of my IT department had been outsourced to India. It was a move that I did not want to make, but had to make for stress-related health issues.

I have qualified for SS benefits and started to receive them earlier this month. I am also taking money out of my IRA to make ends meet.

One of my previous managers at Wells Fargo (before I moved to IT) has now contacted me and asked me if I would consider coming back to a full-time position in her department. The salary level is very good, and I am tempted to accept it. My concern is how it would impact my Social Security benefits.

I know that between age 62-66 I would lose all of my benefits. But what about age 66 and after? Would I then begin to receive my benefits regardless of my earnings?

Thanks for any help.
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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14219 of 19221
Subject: Re: Social Security question Date: 10/27/2008 5:31 PM
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ggovro asks,

I know that between age 62-66 I would lose all of my benefits. But what about age 66 and after? Would I then begin to receive my benefits regardless of my earnings?


Between age 62 and your full retirement age, you lose one dollar in SS benefits for every $2 in earnings over a $13,560 per year threshold.

There's a higher limit in the year you reach full retirement age.

The year after you reach full retirement age you can earn as much as you like without penalty.


http://www.ssa.gov/pressoffice/colafacts.htm

intercst

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Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14223 of 19221
Subject: Re: Social Security question Date: 10/27/2008 6:52 PM
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Remember that a portion (up to 85%) of your SS benefits will be taxed depending on other income.
You might want to consider suspending SS benefits while you are receiving a employment wages.

Bob

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Author: arahfool Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14224 of 19221
Subject: Re: Social Security question Date: 10/27/2008 7:16 PM
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I don't have the exact link but I am pretty sure you can stop receiving benefits and repay what you have received to date and then re-apply when you decide to retire again. Check www.ssa.gov ...

arahfool

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Author: TwoCybers Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14234 of 19221
Subject: Re: Social Security question Date: 10/28/2008 1:41 PM
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There is an option that may make sense. As others have posted, you will loose SS benefits big time if you take the job. But you can essentially get a "Do Over" on Social Security. You pay back all the benefits you have received (no interest - just total of all checks) and then at some future time, start up. When you start up in the future, you will received more money because it really is a Do Over.

If you are interested in this, you will be filing a form 521 (Google on that form and you will get the form and lots of information on how it works.) This is not real common and while many Social Security people know about this, few have actually done it. I suggest you download the form, make at least 2 copies, fill out one and then take all your forms to your local Social Security office - if however you do not have a local office nearby, you might try phoning for assistance with filing. The words you put on the form are important.

If you go the the local office (or file by mail), you must give have with you a check for the exact amount of the total benefits.

This process was specifically designed for people like you.

I found that even though I went to the local office, there was one payment in the works that I had to write a second check for.

Lastly be patient. This process for me involved 3 different locations and these locations did not communicate well with each other -- eventually it all was cleared up, the people really worked hard and wanted to help -- but when the person who approved my request in Chicago did not know I had given a check to the Atlanta Office she said I had to send in money. Then another person pointed out the check I wrote was not enough, by the one check I mentioned above.

Gordon
Atlanta

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Author: ggovro One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14235 of 19221
Subject: Re: Social Security question Date: 10/28/2008 2:25 PM
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Gordon (and others) -

Thanks for the help.

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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14245 of 19221
Subject: Re: Social Security question Date: 11/8/2008 10:11 PM
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If you both work and receive Social Security, the Social Security office will make a recalculation every November of a revised benefit based on your additional contributions. This works fine if you are still working at your full retirement age.
Since if you accept the position your early retirement benefits will be wiped out, to undo the benefits by returning your checks makes a lot of sense. It sounds like the job is "right up your alley" and you would like to take it.
This doesn't happen commonly, but as pointed out there are rules to cover. The extra years of contributing to the system will raise your benefit by more than inflation, when you eventually do permanently retire.

Best wishes, Chris

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Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17438 of 19221
Subject: Re: Social Security question Date: 12/9/2011 7:44 PM
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Take the new position, no questions asked. I retired at the end of October 1995 -- I was 50. I just started a new Venture Capital Limited Partnership with two other general partners I have worked with in the past. We seel to raise $50 million by June 2012, already half-way there.

Kahuna, CFA
Venture Capital
General Partner

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Author: JimLuckett Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17441 of 19221
Subject: Re: Social Security question Date: 12/10/2011 3:39 PM
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They have tightened the rules on reversing a decision to start taking social security but on the facts you have given you can still do it. Under the new rules, you can only change your mind like this once in your life and you have to do the repayment within 12 months of starting to receive the checks. So, I would wait until the 11th month and see how the new job works out, if your decision otherwise would be to keep getting social security.

In general you would be better off not starting social security and drawing more heavily on your IRA if you are out of work and under full retirement age. Social Security is a unique and very desirable asset because it is linked to inflation, you can't outlive it, and your spouse can switch to your level of income when you die if yours was higher. So, you want to maximize it, given these wonderful attributes. You may live longer than average.

Indeed, one spouse should try to wait until 70 before receiving checks if at all possible; both would be even better. Once both spouses are 66 or over one can start their spousal benefit even if both are waiting until 70 to maximize their benefits. If you are the one who will take the spousal benefit during the 66 - 70 interval, then your mate must start benefits in order to activate your eligibility, but then can immediately suspend the stream of checks to get the boost for waiting to 70. You will still get 50% of what their full check would have been as your spousal benefit.

Sorry for wandering off topic a bit for this thread, but hope it's useful to someone. Google spousal benefits for details.

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