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September 7, 2020
Filing for Benefits
When to file for your Social Security is a personal decision. I’ve always told people, “tell me when your going to die and I’ll tell you when to file”. There are multiple issues to consider as you structure your retirement portfolio. Spousal benefits is one of these choices. You will be eligible to file for spousal benefits if your full retirement rate is less than half of your spouses. If your spouse has filed for benefits you are eligible to take your spousal benefits as early as age 62. Should you take it? One case scenario to be mindful of is longevity. Statistically speaking, men pass earlier than women. Is your spouse in good health? Are they genetically long lived? If you feel they will pass before you, I’d recommend taking the spousal benefit as soon as you are eligible. If they predecease you, depending on your age, your benefit will automatically increase to a widow/widower rate that is roughly the same benefit amount as that which your spouse currently receives. What this means to you? You will get the lower spousal rate while they are still alive and a higher rate later. This gives you more income over your lifetime than if you chose to delay filing. Contact me for your personal recommendation. Maryellen Eckert SSA Specialist
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June 7, 2020
Are You Disabled?
No one wants to be defined as ‘disabled’, however it could make a difference in the amount of Social Security you receive over your lifetime. A disability benefit is equal to full retirement benefits. It is not reduced for age. The disability determination is based on severity of impairment, but it can also be a cumulative decision of multiple impairments. Example: You have arthritis, sleep apnea, diabetes, high blood pressure, and depression. You may not be approved with just one of these impairments, but if you have all of them, the possibility of being approved is greater. You can submit a disability application to see if it’s approved. It’s private; no one will know you have filed. Social Security does not share it’s information. If your claim is approved, you will receive your full benefit for the duration of your entitlement. This means more money in your pocket. If you have stopped working and have medical issues, filing for disability may be your best option for a higher benefit rate. Maryellen Eckert SSA Specialist
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March 7, 2020
Medicare and Your Money
It’s that time a year again….Beneficiaries start being notified if any income related monthly adjustment amount (IRMAA) will affect their monthly premium due for Medicare Part B. Please see the chart below to see if you’ll be paying more for Medicare this year. Beneficiaries who file individual tax returns with income: Beneficiaries who file joint tax returns with income: Income-related monthly adjustment amount Total monthly premium amount Less than or equal to $87,000 Less than or equal to $174,000 $0.00 $144.60 Greater than $87,000 and less than or equal to $109,000 Greater than $174,000 and less than or equal to $218,000 57.80 202.40 Greater than $109,000 and less than or equal to $136,000 Greater than $218,000 and less than or equal to $272,000 144.60 289.20 Greater than $136,000 and less than or equal to $163,000 Greater than $272,000 and less than or equal to $326,000 231.40 376.00 Greater than $163,000 and less than $500,000 Greater than $326,000 and less than $750,000 318.10 462.70 Greater than or equal to $500,000 Greater than or equal to $750,000 347.00 491.60 The increase is based on your modified adjusted gross income, and all income is countable. What that means to you: If you sell a home… Exercise stock options…. Withdrawal from your 401… Any other income that’s countable in your tax return, IS countable towards IRMAA. The increased premiums due based on an IRMAA will last for the calendar year. IRMAA is recomputed annually. If you have any of the following life changing events you can request a new determination. They are: Marriage Work Reduction Divorce/Annulment Loss of Income-Producing Property Death of Your Spouse Loss of Pension Income Work Stoppage Employer Settlement Payment What to do if you have a life changing event??? Complete this form and submit it to your local SSA office and they will make a new determination. https://www.ssa.gov/forms/ssa-44-ext.pdf Maryellen Foley-Eckert SSA Specialist
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December 7, 2019
What’s New in 2020 for SSA
It’s that time of year again. The new 2020 program rates and limits have been updated. Here are some updates that may affect you. Cost of Living Adjustment (COLA) is 1.6%. If you’re already entitled you should have received your electronic notification of your new rate in your messages on your ‘my Social Security account’. Maximum Taxable Earning are 137,700. You will not have any SSA payroll taxes deducted from your pay once your earnings exceed this amount. Medicare taxes have no limit. Earnings Test Annual Exempt Amount is 18,240 if you are under your full retirement age. You can work and earn up to this amount annually and have no affect on your retirement check. If this is the year you are attaining your full retirement age, you can earn up to 48,600 for months before your attainment. Tax Rates for Social Security will be 6.20% and Medicare 1.45%. Self-employed persons pay 12.4% in SSA taxes and 2.9% in Medicare taxes. Earnings required for one work credit is 1,410 with a maximum of 5,640 for the total four credits within the year. Work credits are how SSA calculates your benefit. You must have at least 40 work credits to qualify for retirement benefits. Maximum monthly SSA benefit is now 3,011. This rate of payment is obtained by maxing your taxable wages annually over your lifetime. If you have questions about this update, please feel free to reach out for any clarification. Happy Holidays! Maryellen Eckert SSA Claims Specialist
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