Ask Larry

Hi Larry/Jerry--

Thank you for sharing so much useful information via your books, the website, and patiently answering our many questions! Fortunately, I've been able financially to wait to file for Social Security until my 70th birthday which is upcoming in a few months. I will file on-line as my local SSA office seems to recommend this approach when I went to their office in the past to file for Medicare. For my on-line Social Security application, I want to ensure that I use the correct wording in the Remarks section to avoid my benefit starting before my 70th birthday and to ensure I receive all available Delayed Retirement Credits. I read your book for guidance and I'm thinking the following phrase would be sufficient:
"I am filing for my Social Security retirement benefit to start with my 70th birthday (8/25/2023). I do not want to receive any retroactive benefits."
Do you think the above phraseology is specific enough to ensure that all of my DRCs are included in my monthly retirement benefit which I believe would result in my first payment starting in September 2023?

Also, I'm anticipating that the on-line form will ask if I want to enroll in Medicare Part B (it's included in the current paper form). Do I skip that question since I'm already enrolled in Medicare? Or should I answer "No"?

Thank you for your assistance.

Katherine

Hi Katherine. Since your birthday is apparently 8/25/53, the most important thing to do when you complete your application is to select August 2023 as your month of election (MOE) to start benefits. Social Security won't start your benefits any sooner than the month you specify as your month of election, even if you don't add add anything in the remarks section of the application. It certainly wouldn't hurt to also add a statement in the remarks section, though, and the statement you mention in your question should be fine.

With regard to the Medicare Part B question, you wouldn't want to answer that question 'No' unless you want to terminate your Part B coverage. Social Security interprets negative answers to that question as an indication that you wish to cancel your Part B coverage. I don't think the online application will allow you to skip the Part B Medicare question, so assuming that you do in fact want your Part B coverage to continue you should answer 'Yes'.

Best, Jerry

Can an ex spouse decline her portion off ex husbands benefit

Hi. The answer is basically yes. No one is required to apply for Social Security benefits, so an ex-spouse can simply choose not to apply for benefits. Or, if they've already applied, they could either withdraw their application or waive receiving benefits.

However, when an ex-spouse collects divorced spousal benefits, they aren't paid a portion of the worker's benefit. Divorced spousal benefits are paid in addition to the worker's benefit. Therefore, if an ex-wife elected not to claim benefits from her ex-husband's account it would not increase her ex-husband's benefit rate. Nor would it increase the benefit rates of any children, spouses, or other ex-spouse's who are eligible for benefits on the worker's record. Divorced spousal and divorced survivor benefits don't count toward the family maximum benefit (FMB) amount that can be paid monthly from a worker's account, so it doesn't decrease anyone else's benefit rate if there is an ex-spouse who is collecting benefits on their ex's record.

Best, Jerry

I recently was approved for ssdi benefits but was receiving ssi payments. They say they are witholding my benefits from feb. 2022 until apr. 2023, can they do that?

Hi. Yes, at least potentially. Supplemental Security Income (SSI) payments are needs based, and they are offset dollar for dollar by the amount of any Social Security benefits that you are paid. As a result, if you are awarded Social Security disability (SSDI) back pay for a period of time during which you already collected SSI payments, Social Security withholds from your SSDI back pay any amount of SSI benefits that wouldn't have been due if you had been paid the SSDI benefits timely. Social Security then reimburses the SSI program with the amount they withhold from the SSDI back pay.

However, I don't have sufficient information to be able to tell you whether or not the SSI offset amount was correctly calculated in your case, so if you believe that the amount is incorrect you could file an appeal (https://www.ssa.gov/apply/appeal-decision-we-made).

Best, Jerry

We are both mid 60's in good health about to retire. We have 1.2 m in savings, no debt and are evaluating the costs from savings for different SS claiming times. Is there an average acceptable cost from savings to defer SS till we are both 70? What is an acceptable percentage of our portfolio to spend over the next 5 years deferring SS till 70?

Hi. Your best option with regard to claiming Social Security benefits depends on numerous variables, perhaps the most important of which in your case is your and your wife's comparative primary insurance amounts (PIA). If you wait until age 70 to start drawing your Social Security retirement benefits, you will assure yourself of receiving your highest possible monthly benefit rate for as long as you live. And, that higher benefit rate can potentially be passed on to a surviving spouse in the form of a widow(er) benefit. So, in many cases it makes sense for at least the spouse with the higher PIA to wait until age 70 to start drawing their Social Security retirement benefits.

It sounds like you should strongly consider using one of our software options. Our Maximize My Social Security software (https://maximizemysocialsecurity.com/purchase) program fully can compare and analyze all of your various Social Security filing options in order to help you determine your best strategy for maximizing your Social Security benefits. Or, you may want to consider using our Maxifi Planner software, which is a full featured financial planning software program. For detailed information on the Maxifi program, click on the following link: https://maxifiplanner.com/.

Best, Jerry

Married 5 yes. Got divorced. Ex-husband never remarried. He passed away 6 yrs ago at the age of 62.
I did get remarried but got divorced.
I am 63. Am a eligible for his benefits please?

Hi. If you were married to your spouse for less than 10 years and if you were divorced from him at the time of his death, then the only type of benefits that you could qualify for from his Social Security record are mother's benefits. In order to qualify for mother's benefits, you would need to a) have your spouse's child in your care, b) the child must be either under age 16 or disabled, and c) the child must be eligible for Social Security child or disabled adult child benefits (https://www.ssa.gov/OP_Home/handbook/handbook.04/handbook-0416.html).

Best, Jerry

I noticed on the social security earnings record that my for three years my social security earnings where different/lower than my Medicare earnings. For example in 1989 my ss earnings were $4,217 but my Medicare earnings were $26,183. I am unsure why there is such a disparity in the earnings. Will social security use the Medicare earnings if they are higher than the social security earnings? If not how can I correct the record if I am unable to locate my W-2 or tax forms? Thank You

Hi. No. When computing your benefit rate, Social Security will only give you credit for earnings on which you paid Social Security taxes. For example, wages earned by some federal civil service employees are subject to Medicare taxes, but are exempt from Social Security taxes. Those taxes fund the Medicare program, not Social Security. As a result, those earnings cannot be used for Social Security quarters of coverage (QC) or benefit computation purposes.

If you think that you did in fact pay Social Security taxes on earnings that don't appear on your Social Security earnings record, then you'll likely need to submit evidence in order to get your earnings record corrected. The best evidence of wages is a W-2 form, but Social Security can potentially use secondary evidence (https://secure.ssa.gov/poms.nsf/lnx/0301403052). I would suggest contacting Social Security to discuss your options if you believe that your earnings record isn't accurate.

Best, Jerry

I am divorced and have part of a federal pension. I have my own earned social security benefit. Am I subject to the wep or gpo?

Hi. Your federal pension could only cause the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO) provision to affect your Social Security benefits if the federal pension is based on your own work and earnings that were exempt from Social Security taxes.

Our software is fully programmed to handle benefit computations involving WEP and/or GPO, so it sounds like 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

I will b e 70 mid June, 2023 waited until this year to commence SS benefits (medicare since age 65). Unsure if payments should begin June or July to r eceive full Delayed Retired Credits. Searched exhaustedly - including your books, articles, etc. Thank you

Hi. Your age 70 rate will be payable if you elect to start drawing your benefits effective with the month in which you reach age 70. So, if you turn 70 in mid-June, you'll want to select June as your month of election to begin benefits. Social Security pays benefits a month behind, though, so your June payment will be due in July.

Best, Jerry

My wife and I are Canadian citizens, ages 62 and 65. We are collecting CPP in Canada, and will be applying for SS in the US soon We have worked 24 years in Canada and 24 here in the US. Is my social security affected by my Canadian pensions? Our CPP is minimal, under $300/ month each . We are not U S citizens but have a green card

Hi. Yes, if both you and your wife are collecting CPP pensions that are based on your own individual earnings in Canada, then your U.S. Social Security retirement benefit rates will likely be reduced due to the Windfall Elimination Provision (WEP). The WEP can cause a person's U.S. Social Security disability or retirement benefits to be calculated using a less generous benefit computation formula if they are also collecting a pension that's based on their work and earnings that were exempt from U.S. Social Security taxes.

However, there is a WEP guarantee provision that limits the amount of reduction that can be applied to a person's U.S. benefits to no more than roughly one-half of the amount of the non-covered pension. Our software is fully programmed to handle WEP computations, including the WEP guarantee provision, so you and your wife should strongly consider using the 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

WHEN I GO TO MY LOCAL SS OFFICE TO FILE FOR SS BENEFITS ON EX HUSBANDS SS, WHAT ALL IS REQUIRED, WHAT WILL I NEED TO BRING TO APPOINTMENT

Hi. At a minimum, you'll need to show Social Security a certified copy of your divorce decree. And, if the divorce decree doesn't show your marriage date, you'll also need to show them proof of your marriage (https://secure.ssa.gov/apps10/poms.nsf/lnx/0200305020). It's possible that you could also be asked for proof of age, such as a birth or baptismal certificate, but in most cases proof of age isn't required.

Before applying 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