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03-04-2017, 01:16 PM
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#1
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Recycles dryer sheets
Join Date: Aug 2006
Posts: 478
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SS a little "early"
Haven't been able to find a definitive answer to this:
I turn 70 in July of 2018, and have been holding out until then to claim SS. But if I claim, say, in January, how much of a hit will I take? The ss calculator tells me the answer for different yearly ages, but not for months, e.g. 69 yrs +6 mos.
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I still don't get it...
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03-04-2017, 01:20 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Sep 2002
Location: Silicon Valley
Posts: 1,008
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03-04-2017, 01:22 PM
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#3
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Full time employment: Posting here.
Join Date: Jul 2011
Posts: 723
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The annual increase is 8% after reaching your FRA, and it's calculated monthly so if you take it 6 months early it's a 4% reduction from your age 70 benefit.
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03-04-2017, 01:28 PM
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#4
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Recycles dryer sheets
Join Date: Aug 2006
Posts: 478
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Got it, thanks.
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I still don't get it...
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03-04-2017, 01:29 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jun 2007
Posts: 2,657
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Watch out when claiming that you actually get what you intended. Some SS offices are reported to sign 70 year olds up as if they had filed at age 69.5 and pay 6 months arrears of (slightly reduced) payments in a lump sum, but lock you into the 69.5 age payment instead of the age 70 payment. Apparently many people like the lump sum, but if that's not what you want be careful you don't get signed up for it my mistake.
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03-04-2017, 02:30 PM
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#6
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Full time employment: Posting here.
Join Date: Dec 2003
Location: San Carlos, CA
Posts: 639
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Quote:
Originally Posted by growing_older
Watch out when claiming that you actually get what you intended. Some SS offices are reported to sign 70 year olds up as if they had filed at age 69.5 and pay 6 months arrears of (slightly reduced) payments in a lump sum, but lock you into the 69.5 age payment instead of the age 70 payment.
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Yes, I was offered that option. I refused. This was after I'd applied on line; someone from the local SS office called. It could be standard SS operating procedure, I suppose.
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03-04-2017, 11:56 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,099
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They stupidly think everyone must love getting a "bonus"
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03-05-2017, 06:36 AM
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#8
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gone traveling
Join Date: Apr 2011
Posts: 3,375
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Quote:
Originally Posted by growing_older
Watch out when claiming that you actually get what you intended. Some SS offices are reported to sign 70 year olds up as if they had filed at age 69.5 and pay 6 months arrears of (slightly reduced) payments in a lump sum, but lock you into the 69.5 age payment instead of the age 70 payment. Apparently many people like the lump sum, but if that's not what you want be careful you don't get signed up for it my mistake.
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So if you wait till 70.5, do they give you a lump sum of six months in arrears of age 70 payments?
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03-05-2017, 10:26 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Jun 2004
Location: W Wash
Posts: 1,644
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I turn 70 in Sept this year. I took my SS starting Jan 1, 17--there was about a $30-40/mon "penalty" in the monthly rate BUT receiving over $3000 per months for 9 months more than offset.
Edit to Add: Furthermore, starting Jan 1 gives you the full annual benefit in your monthly vs. starting later in the year, when you loose the annual adjustment until the following year. Of course, the inflation adjuster this year was nada to 'write home" about.
YMMV
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03-05-2017, 10:47 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,899
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What is it with the wording "By April 1 of the year following the year you become age 70½"
Isn't that the year you become age 71½? Then why don't they just say so?
I guess the "half year" approach avoids someone having to make a full RMD when they were only at that age for less than 6 months, could be just a day? Why not just prorate it for x/365? Or forget about it - everyone who reaches age X needs to take an RMD, what difference does it really make? They don't make those sorts if adjustments for voting ages, driving license, etc.
Just seems like they love to make the wording more difficult than needed.
-ERD50
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03-05-2017, 10:56 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,930
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Quote:
Originally Posted by growing_older
Watch out when claiming that you actually get what you intended. Some SS offices are reported to sign 70 year olds up as if they had filed at age 69.5 and pay 6 months arrears of (slightly reduced) payments in a lump sum, but lock you into the 69.5 age payment instead of the age 70 payment. Apparently many people like the lump sum, but if that's not what you want be careful you don't get signed up for it my mistake.
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My SS "professional" pushed this option pretty hard but I don't understand why. I would think SS would rather we wait, since there is that small but not vanishingly small possibility that we could die in the mean time. Of course, DW would then collect, but still... One thing that seemed a bit disingenuous was that the rep made it sound like there was no cost (or, more to the point, she did not point out that there would be the cost of lower payments from then until I croak.) She did say what I would receive monthly from then on, but did not compare it to the amount I would collect by waiting until 70. I knew that there would be a cost, but only because I have a rudimentary understanding of how SS works. As it turns out, I did start as of Jan this year instead of waiting until my birth month. Only a month or two early, depending on when the correct Wednesday (or some such) falls. Don't think a percent or so will be a big deal, and it makes tax planning easier for my addled brain. YMMV
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Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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03-05-2017, 11:05 AM
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#12
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,362
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Not unreasonable if you consider that most people love getting a refund when they file their income taxes.
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03-05-2017, 12:11 PM
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#13
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Full time employment: Posting here.
Join Date: Jul 2011
Posts: 723
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Quote:
Originally Posted by ERD50
What is it with the wording "By April 1 of the year following the year you become age 70½"
Isn't that the year you become age 71½? Then why don't they just say so?
I guess the "half year" approach avoids someone having to make a full RMD when they were only at that age for less than 6 months, could be just a day? Why not just prorate it for x/365? Or forget about it - everyone who reaches age X needs to take an RMD, what difference does it really make? They don't make those sorts if adjustments for voting ages, driving license, etc.
Just seems like they love to make the wording more difficult than needed.
-ERD50
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I didn't read what you read but by the sound of your question, I think you're confusing the rules for the "beginning" RMD. Your very first RMD can be delayed to the year after you turn 70 1/2, as long as you take it by April 1st. In other words, you must take 2 RMDs that second year if you choose that option. It that what you were asking?
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03-05-2017, 01:13 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by gerntz
So if you wait till 70.5, do they give you a lump sum of six months in arrears of age 70 payments?
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No.
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03-05-2017, 03:18 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Posts: 2,140
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Quote:
Originally Posted by nwsteve
Edit to Add: Furthermore, starting Jan 1 gives you the full annual benefit in your monthly vs. starting later in the year, when you loose the annual adjustment until the following year. Of course, the inflation adjuster this year was nada to 'write home" about.
YMMV
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This doesn't apply if you wait until 70. You get the full amount regardless of what month you turn 70.
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And whatever your labors and aspirations in the noisy confusion of life, keep peace in your soul. With all its sham, drudgery, and broken dreams, it is still a beautiful world. Be cheerful. Strive to be happy.- Desiderata by Max Ehrmann
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