Topic: Retirement (Read 11684 times)

JoAnn · « **Reply #60 on:** February 07, 2009, 08:39:48 AM »

If he takes his SS at 62 and is still working his full time job, what kind of % has to be paid back. I'm not sure I understand this part of it. So is it paid back at the end of the year when we normally do our taxes? There's nothing like advice and suggestions from people who have been there and done that. Thanks!

JoAnn

Ned · « **Reply #61 on:** February 07, 2009, 09:40:08 AM »

Prior to full benefits age, you can earn up to a set amount each year while receiving SS benefits with no penalty. That limit right now is about $12,000, and goes up each year. The overpayment is $1 for each $2 that you earned over the limit. If you earn over that amount, SSA will eventually send you notice of overpayment and the amount of that overpayment with several options for repayment. You can either repay in a lump sum or let SSA withhold your benefits until the overpayment is repaid. It may take a year or two before they send the notice. I received my overpayment notice for 2005 just last November, but they took back the overpayment for 2006 last year.

If you haven't already done so, open your account at the SS Online web siteweb site where you can get all the details.

29er · « **Reply #62 on:** March 03, 2009, 02:38:12 PM »

Ned: I was also born in 1942. (june) I took SS only when I had to pay medicare Part A. My family has tremendous longevity, some lived over 100 years. I took a gamble and hope it pays off. I'll let you know!

Ned · « **Reply #63 on:** March 03, 2009, 03:13:44 PM »

Same year and month as me. I figured that by waiting I'd get paid more money but in cheaper dollars so I took the money

By the time I break even, I won't care anymore.

Jeff · « **Reply #64 on:** March 03, 2009, 09:47:30 PM »

JoAnne:

If you tell SS what you are currently making they will make an estimated reduction in your benefits to offset your earnings.

JoAnn · « **Reply #65 on:** March 05, 2009, 08:07:07 AM »

That good to know, Thank you, Jeff!

I'm not sure if I'm reading what Ned said correctly. 1/2 of what Jim earns working will have to be paid back to SS or 1/2 of what the SS payment is? What about the fact that I will still be working but not old enough to collect SS does that count into the earnings or would it be just my husband?

I know we need to start studying up on this stuff, but it seems every time I do I get interrupted. Am I the only one who finds this all so confusing?

Thanks you all are a great help.
JoAnn

Ned · « **Reply #66 on:** March 05, 2009, 08:23:54 AM »

For every $2 he earns over the SS allowable income, he will have to pay back $1 to SS. For example, if the allowable income is $12,000 and he earns $20,000 he would have to pay back (20000-12000)/2 or $4,000. Only his earnings are counted, not yours. Of course, he won't have to pay back more than he received in SS benefits.

I'm sure one of our resident accountants will correct this if I've made any errors, but I've gone through this for 2 years.

Pierat · « **Reply #67 on:** March 05, 2009, 11:15:12 AM »

About Social Security and reduced benefits when you work: Be prepared for a substantial time lag in getting benefits started, adjusted or stopped. Based on my experience a couple of years ago, they don't always get it right nor do they necessarily act promptly. I worked several little jobs between ages 62 and 65. For example, I had two different short-term jobs for several months, separated by a few months without work. In each case, I notified them promptly when I learned that I was employed and when the employment ended. AFAIK, you are required to give notice promptly, not just pay them back at the end of the year or whenever.

Be prepared for a time lag during which you may not receive any benefits even if they are technically due, as they may delay and then pay you in a lump sum later (or not!). Social Security was quick to stop my monthly benefit payments, but slow to notify me of the amounts which they calculated were or would be due to me later. Usually it took at least two or three months for things to settle down. On one occasion, about two years after one job ended, they paid me several hundred dollars extra based on one of their routine audits that showed I had been docked too much while working on that job (and which I hadn't calculated right either).

I made it a practice to notify them by letter so that I had a record of doing so. However, I found that telephone calls worked best, and quickest, to get results when requesting clarifications or adjustments. Just had to stick with it, wait out the queue, and try to keep a level head about it all. Good luck!

Ned · « **Reply #68 on:** March 05, 2009, 11:30:49 AM »

You're right on the time lag. Last year they withheld benefits to repay for 2007 but it took until late last year to get the overpayment notice for 2006. I'm not getting any benefits this year until April, and then just a partial payment.

Jeff · « **Reply #69 on:** March 05, 2009, 09:45:23 PM »

I had deferred income in 2006 and 2007 incorrectly reported on my W2s for those years and have had both Sue's and my benefits shut off sonce October while they try to straigten it out. Checks are supposed to start next month but nobody has any idea how long it will take to repay the rest.

Best way is to get it done correctly in the first place.

JoAnn · « **Reply #70 on:** March 11, 2009, 07:56:30 AM »

Got it, thanks guys!

JoAnn

29er · « **Reply #71 on:** March 12, 2009, 03:09:21 PM »

Jeff: Did you mean deferred EARNED INCOME?

Kerry

Jeff · « **Reply #72 on:** March 13, 2009, 09:55:12 PM »

Quote from: 29er on March 12, 2009, 03:09:21 PM

Jeff: Did you mean deferred EARNED INCOME?

Kerry

Kerry:

Income earned prior to Aug 2005 when I retired but reported on a W-2 over the next three years as income from an unapproved retierement plan. It IS NOT supposed to be considered earned income in the years it is received because it was reported as SS and Medicare wages in the years it was earned.

29er · « **Reply #73 on:** March 14, 2009, 12:41:31 PM »

Jeff: Okay, I understand. And thanks....you have saved Beth and I some misery by sharing the SS situation.

Kerry

utahclaimjumper · « **Reply #74 on:** October 21, 2009, 10:08:53 AM »

I started collecting at 63, but to "beat the system" I went self employed, hired my wife, paid her all the money,(taxable of coarse) and kept my income under the limit. The cap came off at 65 and now yhe only problem is I'm still self employed and a captive to all my customers.>>>D

PatrioticStabilist · « **Reply #75 on:** October 30, 2009, 12:28:57 PM »

I took mine at 62. I knew I wasn't going to work anymore and we figured it would take 12 years for me to break even if I waited longer. Haven't been sorry. However, if I were still working I would most likely have waited till at least age 65. One thing that helped me was the big cost of living increase last year and the fact I don't yet have to pay in to medicare, but that's coming.

I worry about the last year my husband works, from what I'm reading they base your medicare premuim on his prior years earnings and if he is still working overseas they will be high and we will get hit hard for that 1 year.
I've read the base amount is right at $100 but can go up to as high as $300+. They are adjusting those premiums according to income earned. I've read that unearned income from investments and rentals won't be counted after he retires. Need to double check that, just in case.

memmer · « **Reply #76 on:** November 04, 2009, 01:41:30 AM »

I could swear that everyone that has reached the age of 65 can earn any amount of wages without any deductions of any amount.The age for full benefits does not apply.

FRED

Ned · « **Reply #77 on:** November 04, 2009, 08:21:39 AM »

You can have unlimited earnings without any payback starting in the year in which you reach full retirement age. In my case, that was the year following my 65th birthday as my full retirement age was 65 years and 10 months.

melvonnar · « **Reply #78 on:** November 09, 2009, 03:15:06 PM »

All those that are working to get some more money; keep this in mind----no amount of money will buy you one more minute of time.

papahog · « **Reply #79 on:** November 10, 2009, 03:05:04 PM »

I have not worked since I retired at 62. My income, while fixed, will carry me for the rest of my life. Money is never more important than time. My time on the road is the best of times. I am happy with my decisions.

geodrake · « **Reply #80 on:** November 11, 2009, 12:32:36 PM »

We have been retired for seven years, and to date it is the best time of our life. A year and a half ago we began campground hosting, and we love it. It is all volunteer work, but we do get our campsite free. We get to see a lot of country and meet a lot of nice people. We have hosted Turkey Run State Park in Indiana, Patagonia Sonita Creek Nature Conservancy in southern AZ, St. Croix National Scenic Riverway in Wisconsin, Calf Creek Recreation Area at Escalante, Utah, and will host the Caloosahatchee Regional Park at Ft. Myers Florida this winter. So far this year we have been home for eight weeks. Ruth won't leave now till after Christmas, and I was ready to leave a week after we got back.

PatrioticStabilist · « **Reply #81 on:** November 16, 2009, 09:50:33 PM »

Wow, not sure what is getting into my husband. We had to drive to Liberty today to take care of business. We were talking about him getting his part of the motorhome done so DD and I can use it maybe in January to run down to Corpus Christi or those invirins for a first run. He said oh, if you and Sue Anne really enjoy using it we might consider getting a DP and a newer one later. What am I hearing?? He goes, well TV and satellite would be limited, I'm saying why, its just a fee. He likes driving places, that isn't an issue, so if he drove till I got good to help that would work too. He wants to work till age 66, needs to do that to get full SS, he will be 64 this year so not that far away. He was talking about working till age 70 but I would prefer he didn't. Of course that depends on his health which is excellent. It's just hard as he says to give up a good paycheck since he also enjoys what he is doing. He has to pass a physical each time he goes on a new overseas assignment, his upcoming one is in Angola. As my doc says I'm healthy to, I just have quality of life issues, stomach problems, flat feet, very very flat feet, so back problems but nothing life threatening and yes I know we are blessed. He takes no meds, I do only for stomach issues and some arthritus.

I'm telling him that lots of folks on the forums are saying the Bluebird Wonderlodge or just a Bluebird brand is a really good motorhome, even the older ones. He said oh we can look into that later if you decide this will be fun. But he thinks maybe we should buy a lot maybe one in the east, west, south, and north so we can park there and stay awhile, I would prefer not as I would like to go new places.

Well what can I say? But Sue Anne and I love to fish, hubby could care less, yes, I know very wierd in my opinion. But that's ok, we can fish and he can fiddle. He likes sitting around and talking about oldtimes so I'm sure he would find lots of guys to talk to around campgrounds. He also would jump inand help anyone that needed it. So things are looking up, we shall see how it goes. We are just so overwhelmed with work around here right now, we prioritized the things he has to do, then will have as a bonus anything else we can do. Had to hire a carpenter to do our addition, he finally realized he just doesn't have time. Thats new too.

wdhul · « **Reply #82 on:** November 18, 2009, 12:14:06 AM »

Social Security is actually a pretty good government run program.

If you start collecting at 62, and have some of it taxed because you continue working, SS recalculates your benefit and you end up with higher benefits in the future.

If you start collecting at 62 and later start working again, you can suspend your SS benefits, and when you restart, SS will adjust your benefit to reflect both the new earnings and the fact that you stopped collecting for a period of time.

If you start collecting at 62, you can at some point pay all of it back (without interest??) and SS will recalculate your benefit as if you started at the later date. This may be beneficial if you have the funds, maybe from an inheritance, selling a home etc. You then get the higher benefit from that point on. (Could be better than purchasing an annuity!)

For couples it is worth doing a bit of research on various options, especially if one spouse has had significantly greater earnings than the other.
Since I am not married I haven't looked to closely at those options.

Dan

DonTom · « **Reply #83 on:** November 18, 2009, 04:35:44 AM »

Quote from: wdhul on November 18, 2009, 12:14:06 AM

For couples it is worth doing a bit of research on various options, especially if one spouse has had significantly greater earnings than the other.
Since I am not married I haven't looked to closely at those options.

Well, not all couples. Tom & I, together for 35 years (most of our lives together), has a large difference in incomes but the problem is the so-called DOMA.

-Don- SF, CA

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Author Topic: Retirement (Read 11684 times)