Social Security Question

[scagnt83]

Well both me and Larry are actually kind of saying the same thing I think.

She gets the $870 until age 66. Then at age 66, instead of just the $1k/m, she gets bumped up to $1k+, to account for the withheld amount before age 66.
I believe the withheld amount is amortized over life expectancy (I could be wrong), so I wouldnt expect the increase above $1k/m to be significant.

 

[Larry Tew]

Well both me and Larry are actually kind of saying the same thing I think.

She gets the $870 until age 66. Then at age 66, instead of just the $1k/m, she gets bumped up to $1k+, to account for the withheld amount before age 66.
I believe the withheld amount is amortized over life expectancy (I could be wrong), so I wouldnt expect the increase above $1k/m to be significant.

No, we're saying something different but I'm not sure I'm right. It has always been my understanding that a SS recipient forfeits the "work penalty" forever.

I'm not in front of a computer right now but maybe someone can google the SS work penalty and clear this up for good.

 

[scagnt83]

No, we're saying something different but I'm not sure I'm right. It has always been my understanding that a SS recipient forfeits the "work penalty" forever.

I'm not in front of a computer right now but maybe someone can google the SS work penalty and clear this up for good.

What Somarco quoted was straight from the SSA website. It was the same link I quoted earlier in this thread. It specifically says : "any benefits withheld while you continue to work are not "lost". Once you reach NRA, your monthly benefit will be increased permanently to account for the months in which benefits were withheld."

 

[Larry Tew]

What Somarco quoted was straight from the SSA website. It was the same link I quoted earlier in this thread. It specifically says : "any benefits withheld while you continue to work are not "lost". Once you reach NRA, your monthly benefit will be increased permanently to account for the months in which benefits were withheld."

I'm attaching a SS booklet on the subject. Their explanation is a little muddy but it seems to say you don't "lose" the benefit totally (or even at all?).

 

[WCMason]

vs. We need a tiebreaker vote. On another note, why does Horsesmouth seem like a scam to me?

I'll chime in. Those benefits deducted due to exceeding the $15,480 or $41,400 earnings limits are withheld until FRA but not forfeited.

This SSA publication, How Work Affects Your Benefits, has a good explanation.

http://www.ssa.gov/pubs/EN-05-10069.pdf

 

[somarco]

Muddy is a good way to approach it. Sometimes I think they do this on purpose.

 

[agentjhc]

Pension income is income subject to taxation. So yes, it counts.

I talked to a retired teacher today. Says her pension does not count against her SS. She was rehired p/t and that counts against her SS. At least according to her.

 

[Tahoe Ray]

I talked to a retired teacher today. Says her pension does not count against her SS. She was rehired p/t and that counts against her SS. At least according to her.

Most private pensions do not reduce SS on the earnings test.

As for government pensions...well, that depends:

http://www.investmentnews.com/article/20140202/reg/302029991/public-pensions-offset-social-security

The author of this article is an excellent resource and is pretty accessible.

 

[somarco]

I talked to a retired teacher today. Says her pension does not count against her SS.

It depends.

Assuming she is in GA (based on your flag) and she was in a govt school pension plan, her pension may or may not offset some or all SS.

Some school systems do not participate in SS. Others do. If she was covered by SS part of the time and not covered at other times, she has a mess.

Some school plans are after tax, others before tax.

And then there is the WEP (Windfall Elimination Provision).

It's a mess.