Does it matter what month you take social security?

[MissMolly]

If it was my question that was unclear sorry. I was confirming this issue with only annual adjustments of credits doesn’t happen until you have passed FRA and ceases as soon as the month are 70. So if one files for the month they reach FRA or before then any month is ok and then it is ok the month you are 70 even if those things are midyear but starting the month after FRA and continuing until the month before you are 70 if filing for any of those months you should consider the potential for “ losing” drcs for that year when deciding when to claim

Thanks again

There is no such thing as DRCs prior to your full retirement age, so the delay in applying them only happens after full retirement age. And you got the rest of it correct.

 

[MissMolly]

And keep in mind, we aren't talking about tons of money here. We are talking about $20-$30 a month.

 

[RunningBum]

No. File in January to start collecting in February. SS is paid in arrears. The check you receive in February is for the January benefit.

Thanks. This whole thing is confusing. The good news is that my notes on when to take SS (still 2 years to 62) include a note to look into this matter. Now I've got a little more info. Watch it change in the next few years! But thanks again for your patience in explaining.

 

[MissMolly]

It absolutely is confusing and such an unfair thing to dump on seniors. Imagine the number of folks out there who don’t have a clue about all the little twists and turns regarding SS and aren’t able to make the best decisions. It should not be this hard.

 

[oldtimer]

Is my understanding of DRCs correct when it comes to claiming 6-month retroactive?

* born Jan'54 (not on the 1st)
* FRA = 66 in Jan'20
* apply for SS last week in Dec'21 to start benefits 6-month retroactive from Jan'22 back to Jul'21
* receive Jan'22 payment in Feb'22 = PIA + 18 months of DRCs
* receivein 2022 6-month retroactive lump sum payment = 6 * (PIA + 12 months of DRCs)


Trying to prevent any SS payment received in 2021 to allow maximum Roth conversion space.

Trying to get a chunk of money to cover a big family vacation in 2022.


Any confirmation that 6-month retroactive payment is based on DRCs thru Jan'21 and not DRCs thru July'21

 

[imnontrad]

I volunteer as an admin of the "Social Security Retirement" Facebook group and the answer is - it depends.

If you have not reached your Full Retirement Age (FRA) your SS benefit would be reduced plus you will have an earned income cap until you reach your FRA before your benefit is reduced further. During your first calendar year, if you start SS anytime except January, that earned income limit is pro-rated monthly. So if you have uneven income, this could end up costing you.

When you start SS in any month besides your birth month, It may take a while (as in the following spring) for you to receive the incremental amount between your birth month and your start of SS month (poor explanation, I know) and then checks after that will have this difference.

It will NOT make any difference in when you file when it comes to COLA - you will get it.

 

[azxracer]

Download the Detailed Calculator from the SSA website. You enter all your earnings data (that you get from your myssa account) and it will run any scenario you wish and show the results. All the arcane SS rules are incorporated in the result. Including the Delayed Credits.

 

[oldtimer]

Download the Detailed Calculator from the SSA website. You enter all your earnings data (that you get from your myssa account) and it will run any scenario you wish and show the results. All the arcane SS rules are incorporated in the result. Including the Delayed Credits.

Unfortunately we are using Mac OSX more current than Lion, so unable to use the Detailed Calculator to confirm about the 6-month retroactive amount when applying in January.


Can anyone confirm or deny my understanding that 6-month retroactive payment is based on the previous January DRCs, not the DRCs of January that we are applying for SS.

 

[MissMolly]

Unfortunately we are using Mac OSX more current than Lion, so unable to use the Detailed Calculator to confirm about the 6-month retroactive amount when applying in January.


Can anyone confirm or deny my understanding that 6-month retroactive payment is based on the previous January DRCs, not the DRCs of January that we are applying for SS.

My guess would be it would based on the previous January since you are filing to collect retroactively. Your start date will be July of the previous year. No reason to expect additional DRCs to accrue beyond that.