Ask Larry

Hello,
Has there been any definitive update from Social Security on applying for your own benefits at age 70 on line after taking spousal for 4 years?
Thanks

Hi. I'm not sure what kind of update you're looking for. The Social Security amendments passed by congress in 2015 made it impossible for people born after January 1 1954 to claim regular spousal benefits only while waiting until later to apply for their own Social Security retirement benefits. The only way that a person born after January 1 1954 can collect spousal benefits while waiting until later to claim their own benefits is if they have an eligible child in their care who is under age 16 or is disabled.

However, the 2015 amendments did not change the filing rules for people born prior to January 2 1954. Those people can still file a restricted application for spousal benefits only at their full retirement age (FRA) or later while allowing their own Social Security retirement benefit rate to keep growing until age 70 (https://www.ssa.gov/benefits/retirement/planner/claiming.html).

Our software is updated to incorporate all of the most recent changes in Social Security regulations, so you may want to strongly consider using the software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your options so that you can choose the best strategy for maximizing your benefits.

Best, Jerry

Hi Larry,

My wife (born in 1952) started collecting her full social security benefits at age 66 (and I, at that time was age 65, started taking 1/2 of her benefits, in addition to her benefits.)

I will be turning 70 this year and then will start collecting my maximum social security benefits (instead of just 1/2 of my wife's benefits.)

When I turn 70 will my wife be able to collect 1/2 of my full benefits (Instead of the smaller amount she is collecting now.)?

Thank you for your thoughts on this question!

Hi. I assume you filed for spousal benefits at your full retirement age (FRA), not at age 65. FRA is the earliest that you could have filed a restricted application for spousal benefits only.

In any event, your wife can't switch from drawing her own benefit to drawing spousal benefits only. What she can do is apply for an excess spousal benefit when you start drawing your own benefits. Her excess spousal rate would be calculated by subtracting her primary insurance amount (PIA) from 50% of your PIA, assuming that 50% of your PIA is higher than your wife's own PIA. If it is, the excess spousal amount would then be paid in addition to your wife's own benefit.

A person's PIA is equal to their benefit rate if they start drawing Social Security retirement benefits at their FRA. So, if your wife started collecting her own benefits at FRA, then her own benefit rate plus her excess spousal rate should add up to 50% of your PIA, not 50% of your age 70 rate.

Best, Jerry

Will I lose part of my social security because Im selling my house for 165,00 I went on social security disability at age 59 when I turned 66 they changed me over to regular social security. I'm now 73. Do I need to report it to them.

Hi. No. As long as what you receive is Social Security benefits and not Supplemental Security Income (SSI), then selling your home won't have any effect on your benefits. And, you wouldn't then need to report the sale to Social Security, other than to inform them of your new address.

Best, Jerry

I have a few questions self employment that I had help setting up and running that lost money. (I haven't had any other employment since my disability award.)

For background, the business is running Facebook and Instagram ads for other businesses that pay us on a monthly retainer.

We (my friends/family that helped me set it up) hired one freelancer to be in charge of getting clients. Once she gets a new client it is sent to another freelancer that runs all the ads.

My involvement is just seeing if I get any notifications with issues from the freelancers that I would direct to someone else (they didn't have problems.) All of the freelancers got paid through their platforms (like Upwork) on autopay so there was't much to do there. I had help from my boyfriend and my niece with things like buying a new laptop, running any errands, etc. I really only work 1 hour a month when we have a client (and zero when we don't have any.)

This would seem like a great business for me to have. Unfortunately, we didn't have enough clients at a time to make a profit. With the fixed overhead, and one or zero clients paying a retainer each month, it lost money. We kept at it for a bit thinking if we could get 5 or even 10 clients at a time, I would earn money I'd be happy with. I've since stopped the business.

Anyway, my first question is I've read some things about there being a two year waiting period. What does this refer to/is it true? We started the business more than two years after the onset of my disability but less than two years after my award determination. Are there any consequences to this?

My second question is, how should I have been reporting the losses? The very first month, I thought I had made a profit of like $200 and called SSA. The person I talked to said it was under the amount and it didn't really matter. I said I wanted to make sure there weren't any problems and asked if I should submit something online or if there was a form going forward. I didn't really get any guidance and once I realized we were losing money, I didn't call in anything further. I never received an inquiry into what I did report. Should I have been reporting losses? What should I do now? When I look at the forms for CDR, I will have to answer about being self employed in the past, so I want to fix any problems.

Thank you so much for your time and knowledge!

Hi. No. The only 2 year waiting period that I can think of is with regard to Medicare eligibility for disability beneficiaries. Medicare eligibility begins with the 25th month of a person's entitlement date to Social Security disability benefits.

It can be a problem if a person returns to substantially gainful (SGA) work within 1 year of their disability onset. The Social Security regulations require a person to be unable to do SGA for at least a year in order to qualify for disability benefits. So, if a person starts performing SGA within a year of their disability onset, their claim can be disallowed regardless of the severity of their disabling impairment.

However, the work activity you describe doesn't come anywhere close to being SGA, nor would it even count toward your trial work period (TWP). In order for self-employment to count as a trial work month in 2023, for example, you must either need to have net earnings of more than $1,050, or you must devote more than 80 hours to your work activity.

Furthermore, the fact that you had a loss as opposed to a profit wouldn't make any difference with regard to your benefit rate. I suppose you would want to report your losses on your tax return(s), but my expertise doesn't extend to income tax regulations.

It's always good to tell Social Security about any work activity you perform while collecting disability benefits, but if your work activity was limited to the amount you describe and if you didn't have any months with a net profit, then I can't imagine that it would make any difference whether or not you follow up with Social Security. If you want to be extra careful about following the letter of the law, though, you could complete and submit a form SSA-820 (https://www.ssa.gov/forms/ssa-820.html) to Social Security.

Best, Jerry

If I am a surviving spouse, can I collect my social security benefit at age 62 and then switch to my spouses social security benefit at age 67? Where can I go to find information on this question? Social Security website links would be great. Thank you so much

Hi. Yes, although you couldn't actually switch from your own benefits to survivor benefits only (https://secure.ssa.gov/apps10/poms.nsf/lnx/0200204035). Instead, if you're drawing your own benefits and if you later claim higher survivor benefits, Social Security continues to pay your own benefit plus a partial survivor benefit that's equal to the difference between the benefit rates. The result is a combined benefit amount that's equal to the higher survivor rate.

However, if you claim benefits prior to your full retirement age (FRA) and if you're still working, there is a limit on how much you can earn and still be paid benefits (https://www.ssa.gov/benefits/retirement/planner/whileworking.html).

Generally, the best filing strategy for people who are eligible for both their own Social Security retirement benefits and for surviving spousal benefits is one of the following:
1) File for reduced widow(er) benefits at age 60 or as soon as their earnings will permit at least some benefits to be paid, then switch to their own record at age 70; or,
2) File for reduced retirement benefits on their own record at age 62 or as soon as their earnings will permit at least some benefits to be paid, then file for unreduced widow(er) benefits at full retirement age (FRA).

Normally, a person would want to start out drawing the lower benefit first and then switch to the higher benefit when it reaches its highest potential rate. Our software (https://maximizemysocialsecurity.com/purchase) can help people sort out all of their options so that they can determine the best strategy for maximizing their benefits.

Best, Jerry

My daughter is a 30 yr old adult with special needs. She has Medicaid but we have always maintained private insurance because of her specialized medical needs. Medicaid has been her secondary and won't adequately cover her as primary. Of her 9 doctors only 2 will accept Medicaid.
Question - If one of her parents start on Medicare will that allow her to also get Medicare as a DAC? What allows her to use Medicare as a Primary insurance?

Hi. Yes, if you or your husband claim Social Security retirement or disability benefits and if your daughter qualifies for disabled adult child (DAC) benefits then she'll be eligible for Medicare coverage effective with the 25th month of her entitlement to DAC benefits.

Medicare is automatically a person's primary coverage unless they are covered by an employer group health plan (EGHP) that's based on their own current work, or in some cases a family member's current work. So, unless your daughter is either a) working and covered by her employer's EGHP, or b) she is covered under your or your husband's EGHP that has at least 100 employees (i.e. a large group health plan), then once she qualifies for Medicare that will become her primary coverage.

Best, Jerry

Can maximize my social security be used if I'm currently receiving benefits and am older than 70?

Hi. The only thing that the maximize my Social Security software might be able to do for someone who is over age 70 and receiving benefits is to help identify other types of benefits for which they might be eligible (e.g. spousal, survivor). But, if you're sure that you're already collecting all of the benefits for which you're eligible then the software program probably wouldn't be of any help to you.

However, our Maxifi planner software is a full featured financial planning program, so you may want to consider subscribing to that program. For information about the Maxifi Planner software refer to the following website: https://maxifiplanner.com/.

Best, Jerry

My best friend is around 75 years old.. SS deducts monthly the I believe Pat B $165.00 per month around that ball park.. I have explained to her that they should not be deducting this amount at all. Her monthly check is around $1,850 to $1,900 per month. Should she be keeping this deductible? And if so, can she collect retroactive payments. They have always deduct her Part B, always.

Thank you.
Magdalen

Hi Magdalen. I think you must be mistaken. Part B Medicare coverage isn't free. Everyone enrolled in Part B of Medicare must pay a monthly premium for that coverage, although in some states the state pays the premiums for some of their residents who qualify for Medicaid. Your friend could cancel her Part B coverage, but then she won't have Medicare coverage for any outpatient or emergency room charges. And, even if your friend did decide to cancel her Part B coverage, she couldn't cancel it retroactively and get a refund.

Best, Jerry

I have 24 years with our local school district. I am 60 years old and hope to retire sometime between the age of 63 and 65, My husband is 70 yrs old and is receiving 2834 in Soc sec. I worked for approximately 10 years in the business sector before working with the school district, near as I can figure I "might" get $100 a month because of the WEP. Also I understand that if my husband passes away I cannot collect any widow's benefits. My boss was telling me that at 62 I should go file for my social security so that I could at least start getting that. I'm not sure how much that would be if I file before I retire from the school district.

Hi. My answer assumes that your earnings from the school district are exempt from Social Security taxes. If so, it's true that your Social Security benefit rate wouldn't be subject to a reduction caused by the Windfall Elimination Provision (WEP) until you start drawing your pension from the school system. However, even without a WEP related reduction to your benefit rate, if you file for Social Security benefits prior to your full retirement age (FRA) there is a limit on how much you could earn and still be paid benefits (https://www.ssa.gov/benefits/retirement/planner/whileworking.html). So, whether or not you could actually be paid any benefits if you apply at age 62 depends on how much you'll be earning.

The bottom line is that your best filing strategy depends on numerous different variables, so you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze and compare all of your various options so that you can determine the best possible strategy for maximizing your benefits.

Best, Jerry

Hi Larry. When does the money accumulated in my member directed OPERS plan - Ohio Public Employee Retirement System - create a WEP reduction? My sister is electing not to take monthly payments, she elected the lump sum which she'll evevtually roll into an IRA. She just retired. She's 62 and has a small social security benefit. If she elects to start social security but doesn't touch her OPERS, is her benefit reduced? Or is it reduced later when she takes money out or rolls it into an IRA? Thanks for your help.

Hi. The earliest that the Windfall Elimination Provision (WEP) can cause a person's Social Security benefit to be reduced is the first month that they are entitled to BOTH their non-Social Security covered pension AND their Social Security retirement or disability benefit. Entitlement to Social Security benefits starts effective with the month that a person elects to start their benefits. However, the date that a person is considered to become entitled to their non-covered pension can be more complicated.

If your sister will receive a traditional monthly pension from OPERS, then WEP couldn't reduce her Social Security benefit rate at least until the first month that she claims her OPERS pension. But, if the the non-covered pension plan is a defined benefit or defined contribution plan (e.g., 401(k), 403(b), or 457), then the date she is considered to have become 'entitled' is depends on several variables. Most likely, though, if your sister meets the requirements for an OPERS pension and if she is able to choose when and how to start receiving distributions from her account, then she would likely be subject to a potential WEP reduction to her Social Security rate effective with the first month she takes a distribution from the account. That would be true even if she chooses to take the distribution in the form of a rollover to an IRA account.

It sounds like your sister should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of her options so that she can determine her best strategy for maximizing her benefits.

Best, Jerry