youbet
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I still wouldn't worry too much. If I stopped 200 people on the street, I'll bet that not one person will have heard about this.
Actually, Al, it's one out of every 247.
I still wouldn't worry too much. If I stopped 200 people on the street, I'll bet that not one person will have heard about this.
I must be missing something. If I return all the money, then die tomorrow, didn't my heirs just get screwed out of all that saved up money? How is this different than being annuitized?
At age 70 husband applies again under his record and gets benefits (1,600 per month). Her benefits are then kicked to 800 a month (1/2 of his full age 70 benefits).
I think her benefits can only go up to a maximum of 1/2 of his full retirement age (66) benefits.
You may be right, but in my research on this which included the question to a SSA call center worker, indicates what I stated. Do you have a better reference? I would be interested to see it.
Retirement benefits by year of birth
4. The maximum benefit for the spouse is 50% of the benefit the worker would receive at full retirement age.
Note full retirement age on this page is less that 70.
Spouse (300 a month to husbands age 70 or 10 years at 300 per month = 36,000. Husband 10 years at 150 per month = 18,000. Total benefits 54,000.
See the bottom of the page you provided: "Note: If you delay your benefits until after full retirement age, you also may be eligible for delayed retirement credits that would increase your monthly benefit."
Don't want to nit pick but seems in line with what I was told from the call center. Delay retirement, which withdrawal and repayment causes, since the original application is null and void, get additional credits. BTW what is the "spouse" drawing prior to your age 70 since there is no basis to determine because you are not drawing benefits. She gets benefits on her own record since that is the only one that applies, until you start drawing benefits at, or before, age 70.
RWood wrote"
RWood: Where do you get the husband at 10 years of $150/mo? I think the most the husband could do is four years from Full Retirement Age of 66 to age 70...You could also have some serious tax consequences if you are withdrawing money from an IRA to pay back a large amount..I think that this strategy is not going to be worth it for most people..IMO, it is encouraging individuals to try to get an interest free loan of a few thousand dollars and they could end up paying more than that in taxes due to the complexity of the tax rules..The worst part of the strategy is that it is encouraging higher earning husbands to start SS early..then few will ever write a check for $XX thousand at age 70..So the survivor benefit will not be passed on to the future widow..Just my opinion..
Opps, should have said 7 years. Spouse is 3 years older, she draws $300 a month on her own record, and other he applies for benefits under HER record and gets 50%). She is 62 on day 1 of her benefits, husband is 59, and, at age 62, draws under her record until he is 70 (7 years) at which he applies under his record and hers is "kicked" to 50% of his over 70 rate. Why do you have to take money out of an IRA? Take it out of taxable money (CD's, MMA, etc.,) or maybe a HEL.
Kind of mute for me since I am 67 but I am waiting for a reply from SSA on my application to withdraw.
It is also explained how the retirement benefit increases further with what is called "delayed retirement," but this language does not imply that the "full benefit" increases with delayed retirement, and it is the "full benefit" that the spousal benefit depends on.