Ask Larry

Hi, You guys have been extremely helpful to me in the past.
A while ago, I wrote to ask whether when I switched from receiving Survivor benefits on the 3rd of the month, to my own (bd 4.6.53) they would change my pay date. You indicated it would change to the 2nd wed of the month, as expected due to the 6th of the month birthday.
I was surprised to find that it is going to remain the 3rd of the month.

Hi. In my experience, when a person switched from collecting survivor benefits to collecting retirement benefits on their own account, their payment date could potentially change depending on how their day of birth compared with the day of birth of the person on whose account they were receiving survivor benefits (https://faq.ssa.gov/en-us/Topic/article/KA-01957).

If Social Security has changed their policy with regard to payment dates, I'm not aware of it. Unfortunately, Social Security does not publish the payment cycling section of their operations manual (POMS) online like they do with other sections of POMS, so there's no way for me to research this topic.

Best, Jerry

I have worked in Germany and moved to the US with my Husband in 2008. I have since worked in the USA and meet the requirements for social security benefits in both countries (40 credits in the USA and more than 5 years of contributions in Germany).

However, I have less than 20 years of substantial earnings in the USA. Based on the WEP Chart and an ELY (2023) the maximum reduction is $557 monthly, assuming I retire at full retirement age. Will the US SS benefits be reduced by more than $557 if this is less than 50% of the German retirement benefits?

Also, will the WEP affect my getting Spousal Benefits from my husband?

Hi. The Windfall Elimination Provision (WEP) can only reduce your benefit rate by the lesser of a) 50% of the gross amount of your non-U.S. Social Security covered pension, or b) the amount of reduction resulting from use of the modified WEP calculation formula. Therefore, if the modified calculation formula results in a $557, then your U.S. benefit rate couldn't be reduced by more than that no matter how much your German pension amounts to.

WEP can only apply to U.S. Social Security retirement or disability benefits that are based on a person's own earnings history. Therefore, WEP will not reduce any U.S. Social Security spousal or survivor benefits for which you may qualify.

Our software (https://maximizemysocialsecurity.com/purchase) is programmed to handle benefit computations involving WEP, so you and your husband should strongly consider using the software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your various options so that you can determine the best overall strategy for maximizing your benefits.

Best, Jerry

When you receive a DRC lump sum, do they withhold tax like in my monthly benefit?

I received my lump sum, but no detail, just an amount. Thanks!

Hi. Social Security only withholds taxes from benefits when asked to do so by the beneficiary. As far as I know, taxes are only withheld from regular monthly benefits, so I doubt if Social Security would have withheld taxes from your lump sum. However, you should be receiving a notice in the mail explaining the payment you received, and that notice should tell you whether or not taxes were withheld.

Best, Jerry

Hello,
My full retirement is 66 and 8 months. I plan to retire at 65. I will turn 65 on Saturday October 21st. How do I know what my last day at work would be? That Friday or the next Monday?
Thanks Randall

Hi Randall. If you want to be paid starting for October 2023, then you'll either need to earn no more than $21,240 in the calendar year of 2023, OR you'll need to earn no more than $1,770 in any month from October through December (https://www.ssa.gov/benefits/retirement/planner/whileworking.html). The exact day that you choose to stop working is irrelevant as long as your earnings don't exceed one or both of the above limits.

Before making a final decision on when to apply for benefits, you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry

Hi Larry:
My disabled adult daughter now 27 has been receiving SSI since birth. My husband (Her step-dad) and I applied for DAC benefits on his record in 2/2022. My daughter was initially approved for DAC benefits with an entitlement from the date of the application February 2022 and she received SSI/SSDI and I received a parents benefit for child in care.

PROBLEM: The benefit was suspended beginning with the August payment after I filed a reconsideration request form which I was advised to do so by the Clerk sitting at the SSA window when I came in to inquire about retroactive eligibility so that the Medicare two year period would be less than 24 months. I was concerned about losing Medicaid and her having Insurance coverage. NEXT I received a letter stating there was an error and she does not meet 1/2 support and her DAC benefit was stopped. AND I believe there was an error by the worker who did the review but I now have to file another reconsideration request to appeal the determination.

HELP: I haven't had my questions answered about the basis of the how the decision was made. And it is unclear to me why the claims representative would have ignored the initial monetary support paid out by my husband for home care for my daughter which exceeded the yearly amount of her SSI check. That's not included other expenses for caring for her. But yet my daughter is not eligible due to not meeting the 1/2 support rule for a Step- child. I do know the household income was combined or pooled together per the claims representative but I'm not sure what was counted or excluded. And I need to determine if an error was made in their calculations because my daughter's SSDI benefit hinges on this. Also just as important is if this the only method that can or should be used to decide if my daughter will move from SSI to SSDI off of her father's record.

Hi. One-half support determinations are complex at best. When the pooled fund method of determining 1/2 support is used, the income of all members of the household is pooled together. Then each member's share of the household expenditures is determined by dividing the total pooled income by the number of household members. If the step-child has enough income to pay for more than 1/2 of their share of the household expenditures, then they wouldn't be receiving more than 1/2 of their support from the step-parent.

More specific information about the pooled fund method can be found in the following section of Social Security's operations manual (POMS): https://secure.ssa.gov/apps10/poms.nsf/lnx/0301301190#b. Step by step instructions and examples are included for the various types of household compositions. Information on the type of contributions that can count when determining 1/2 support are explained in POMS RS 01301.010ff: https://secure.ssa.gov/apps10/poms.nsf/lnx/0301301010.

Best, Jerry

Hi, I am still married to my estranged husband for the past 16 years. I am now 62 years old. He is 73 years old. I don't know if he is retired, but after my knee replacement, I wish to retire. How much of his social security payment can I get if I apply for retirement. Also, what can I do for medical insurance?

Hi. Assuming that your husband is collecting Social Security retirement benefits, if you apply for benefits at your full retirement age (FRA) you could likely qualify for the higher of a) your own primary insurance amount (PIA), or b) 50% of your husband's PIA. A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA).

However, if you apply for benefits at age 62 then your benefit rate would be reduced for age by 30% to 35%. You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your options so that you can determine your best strategy for maximizing your benefits.

As for health insurance, you won't be eligible for Medicare until you reach age 65, unless you qualify for Social Security disability benefits or if you are diagnosed with end-stage renal disease (ESRD). My expertise doesn't extend to private and public health insurance options, so I can't give you advice in that regard.

Best, Jerry

What happens to the DAC benefit if there is 1 year of income in excess of SGA limit? Does the DAC benefit go away forever or just for the year of income over SGA limit? We are looking to pay a disabled employee a retirement bonus when she turns 65 but don't want to jepordize the DAC benefit she receives on her father's earnings record.

Also wondering about making a gift to an ABLE acount for this employee. Are employer contributions to ABLE account counted as earnings toward the SGA limit? Thank you!

Hi. A disabled adult child (DAC) can become re-entitled to DAC benefits if their benefits were previously terminated due to substantial gainful activity (SGA). When and if your employee would lose their benefits if you pay them a bonus depends on their total earnings inclusive of the bonus. Bonuses are considered to have been earned in the month(s) FOR WHICH the bonus is paid, not necessarily in the month that the bonus is actually paid.

In 2023, average monthly earnings that exceed $1,470 are generally considered as SGA for non-blind individuals. And, if the bonus you're contemplating paying causes the employee's average monthly earnings to exceed the SGA level then it could cause their benefits to be either suspended or terminated. If the disabled employee is eligible for an extended period of eligibility (EPE), then their suspended benefits could potentially be reinstated without reapplying for benefits once their earnings drop below SGA level (https://secure.ssa.gov/poms.nsf/lnx/0300203080). But, if the employee's EPE has ended before their earnings drop below SGA level, then they would have to file a new application and have their claim approved before their benefits could be re-started.

Gifts aren't normally considered to be earned income, regardless of whether it is given directly to a person or placed in an account on their behalf. And, only earned income counts toward the SGA limits. However, if Social Security determines that the 'gift' is actually remuneration for the disabled person's work activity, then they could potentially count it as earnings.

Suffice to say that this is a complex issue, so you and your disabled employee may want to discuss your options with a claims representative or technical expert at Social Security who would have access to the employee's records.

Best, Jerry

Good Morning
I reached 70 on July 1, 2022 and was unable to file for SS retirement benefits due to medical surgery. How do you think I should now apply for retirement benefits? and would they pay me for the missing months of benefits?
another question: is it better to file for benefits from my foreign location or should I fly to the U.S. and file there?
Thank you for your help.

Hi. No. Social Security retirement benefits can't be paid retroactively for more than 6 months prior to your month of filing, regardless of your reason for not applying sooner. What you should do as soon as possible is to contact Social Security to either apply for benefits or at least make an appointment to apply later. Establishing an appointment to apply for benefits at a later date protects your filing date, which will prevent you from losing any additional months of back pay.

I doubt if it would speed up the processing of your claim if you returned to the U.S. in order to apply in person. If you aren't able to contact Social Security by phone from where you're living, you may be able to apply at a Social Security office in the country in which you reside. And, even if you live in a country that doesn't have a totalization agreement with the U.S., in most countries you can apply for U.S. Social Security benefits by contacting your U.S. Embassy or Consulate. For contact information, refer to the to the following Social Security website: https://www.ssa.gov/foreign/foreign.htm.

Best, Jerry

I've already applied for social security. I will turn 65 in about a week. If I go ahead and retire now a week before my 65th birthday will it affect the amount I receive?

Hi. Social Security retirement benefits are based on an average of a person's highest 35 years of Social Security covered wage-indexed earnings. Stopping work now wouldn't affect your benefit rate at all unless your 2023 earnings will be higher than one of your previous highest 35 years of wage-indexed earnings. And, even it is, one week's earnings give or take is unlikely to make more than a minimal if any difference in your benefit rate.

More importantly, you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your various options so that you can make sure that you're choosing your best strategy for maximizing your benefits.

Best, Jerry

Hi Larry,

I'm a US citizen and worked at a minimum wage job in the US for about 5 or 6 years until 1984, when I moved to Belgium. My SS contributions stopped when I moved to Belgium.

I made my career here, paid into Belgian SS and the pension plans of my employers until my retirement in 2022. I'm now receiving the benefit of those pensions.

Since I only worked in the US for 5 or 6 years, I don't have enough quarters to get any SS and was NOT planning to request it.

I just got off a webinar about WEP/GPO and am wondering if, somehow, could that affect my Belgian pension?

If I don't apply for US SS, how could it?

Do I HAVE to apply for US SS, even if I don't have enough quarters?

Thanks in advance.

Russel

Hi Russell. You certainly aren't required to apply for benefits from the U.S. as far as U.S. Social Security regulations are concerned. However, by not applying you may be forfeiting benefits to which you're entitled. People can qualify for a totalization benefit from the U.S. with as few as 6 U.S. quarters of coverage (QC) provided that they've also earned enough credits to be insured under another country's Social Security program that has a totalization agreement with the U.S. The U.S. program does have a totalization agreement with Belgium, so it sounds like your work in both countries would probably entitle you a U.S. totalization benefit should you choose to apply (https://www.ssa.gov/international/Agreement_Pamphlets/belgium.html).

My expertise doesn't extend to Belgian pension regulations, though, so I don't know what their regulations may require of you. Nor do I know whether or not your Belgian pension could be reduced if you receive a Social Security benefit from the U.S. I can tell you that your Belgian pension would have no adverse effect on your potential U.S. totalization benefit, but I don't know if the reverse is true. You might want to check with the people who administer Belgium's Social Security program to discuss your options with them.

Best, Jerry