I applied for Social Security!

Does Investment income affect SS payment?

Does withdrawing money from retirement funds affect Social Security payment? I have heard if you make more than $14K per yr, your payments are reduced. But what about taking money out of retirement funds (if you are under 66 yrs)?
 
NW-Bound said:
Good! Sorry my dear, but I am in front of you in the line, and no gallantry here. That goes for bbbamI too.

I shall duck now. :hide:
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No reason to hide from me my dear NW. My DH will be receiving his benefit two years before you. We'll try to leave some money for ya....:flowers:
 
haha said:
I also signed up today. It won't start for a while. I am not clear whether I will get my first payment the month after my birthday month, or if that month (birthday +1) is the first month for which I earn a benefit, and the actual payment will hit my account late in the following month. I may drop by the office and ask.

Ha
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I think it takes a couple of months to process. Gee, we're twins! :D

...or is it, great minds think alike?
 
73ss454 said:
No, working is working, it sucks!

When you turned 62 SS gave you a # that you would receive. Do you know how much it increased each month since you didn't take it on your 62nd B day?

I'll be 62 in April and trying to make my mind up about whether I should jump right in or hold off till DW is 62 in 23 months from now. I want to see if it is worth it to wait and how much it will increase every month that I wait.
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Yep, working sucks. At least it did lately, for me.

SS sends that out annually, 3 months before your birthday month.

It does increase monthly, not annually, and so presumably 1/12 of 8% per month. It increases about 8% per year at least until full retirement age. I forget what happens after that.

You can calculate it fairly accurately online on their website.

There are some tricks to do with couples and who should claim first to maximize payout - I am not married so I didn't pay attention to that. Lots of articles on the internet.
 
rsingh6675 said:
Does withdrawing money from retirement funds affect Social Security payment? I have heard if you make more than $14K per yr, your payments are reduced. But what about taking money out of retirement funds (if you are under 66 yrs)?
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Money withdrawn from an IRA or 401K (that was put in pre-tax) is included as ordinary income for taxes. It goes in a different box on the form but that's how it's taxed. Earned income and IRA withdrawals both affect your income, and affect how much SS might be taxed.

Go to taxcut.com and play with the thing for free - you should be able to see how a withdrawal will affect your tax bill.
 
thinker25 said:
Earned income and IRA withdrawals both affect your income, and affect how much SS might be taxed.
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Interesting tidbit here is that attached to the recent Health Insurance Bill is a feature that removes indexing of that $85,000 first step and the higher steps also that are used to increase one's Medicare premium. This will make a big difference over time in how much we are forced to pay for Medicare. It also violates a fundamental precept of economic planning-deal with real amounts, not inflation distorted nominal amounts.

But of course what they wanted was to put stealth price increases into the bill, so fairness or economic sense was no part of the plan. It does have the political advantage that it will remain hidden for while. Except from you lucky folks who read this post.

Ha
 
OMG! Just as some people have warned, there aren't many gummint budget shortfalls that a "little" inflation wouldn't "fix".

I knew it. I am doomed.

No, I am not! I just have to learn to live like a real monk that I bragged I could do. Or at least like Shawn does now. Being at my age now, I still have plenty of time to learn to adapt to this new standard of living, while drawing a retirement income of $100K of inflated money 15-20 years from now.
 
NW-Bound said:
Oh, please! Will anyone leave some money for me? Still 8 years to go.
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Seven years here (I'll be 70 :LOL: ). Of course, I do get a SS check in three years (I turned 63 on Monday), but that's just an advantage of being married and getting 50% of my DW's FRA benefit on my FRA...
 
I signed up online in August & first deposit hit my account in September. Didn't have to provide copies of any documents. Because I have an 11 year-old daughter, my wife & daughter were also eligible for benefits. Wife had to go to local office with key documents.
 
thinker25 said:
Your profile says you're retiring in 2012... :)
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Retirement date and SS claim date are two different things. Hey, I have an eleven year gap from when I actually retired (age 59) till I expect to claim my own SS benefit (age 70).
 
Jake46 said:
I signed up online in August & first deposit hit my account in September. Didn't have to provide copies of any documents. Because I have an 11 year-old daughter, my wife & daughter were also eligible for benefits. Wife had to go to local office with key documents.
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Well that would be great - deposit next month... I'll let you know. They don't consider my S.O. a dependent (:D) and neither does he. I keep trying to get him to support me but he just won't. Darn!
 
Thinker, you may get your first SS next month as Jake46 did. SS has funky rules on exactly when you begin collecting if you apply to start when you turn 62. If you apply after you are 62 the delay from application to payoff is shorter.
 
REWahoo said:
Thinker, you may get your first SS next month as Jake46 did. SS has funky rules on exactly when you begin collecting if you apply to start when you turn 62. If you apply after you are 62 the delay from application to payoff is shorter.
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Well I'm 62 1/2 so... Thanks!
 
My neighbor across the street applied for SS at 62 about 2 years ago. He was happy and thought he was going to get just over $1700 a month. He came home that afternoon real happy. He found, as Jake did, that his 8 year old son and PT worker wife also would receive a benefit. About $4200 a month.

Maybe we can adopt. (heh)
 
73ss454 said:
My neighbor across the street applied for SS at 62 about 2 years ago. He was happy and thought he was going to get just over $1700 a month. He came home that afternoon real happy. He found, as Jake did, that his 8 year old son and PT worker wife also would receive a benefit. About $4200 a month.

Maybe we can adopt. (heh)
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Darn. My S.O. can claim on his own so I don't think getting married will help for long. Hmmmm. Need dependents.... :D
 
thinker25 said:
Your profile says you're retiring in 2012... :)
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Yes, but FIRE and collecting SS can be mutually exclusive events, or in the case of us younger folks, WILL be mutually exclusive events........as SS will be exhausted by those 10,000 boomers a day turning 65 this year.........
 
73SS454
how did your neighbor's wife & son get benefits? never heard of anything like this.
 
gizmo said:
how did your neighbor's wife & son get benefits? never heard of anything like this.
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Here ya go:Understanding The Benefits

When you start receiving Social Security retirement or disability benefits, other family members also may be eligible for payments. For example, benefits can be paid to your husband or wife:

  • If he or she is age 62 or older; or
  • At any age if he or she is caring for your child (the child must be younger than 16 or disabled and entitled to Social Security benefits on your record).
Benefits also can be paid to your unmarried children if they are:

  • Younger than 18;
  • Between 18 and 19 years old, but in elementary or secondary school as full-time students; or
  • Age 18 or older and severely disabled (the disability must have started before age 22).
Click to expand...
 
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