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corvairbob
New Member
Cash: $ 1.25
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Joined: 30 May 2015
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| looking to retire next year |
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i'm 64 now and looking to retire next year at 65. my full retirement age is 66 but what i would like to do is just retire and not apply for retirement for a year and live from my 401 until then. then when i turn 66 i then want to apply for ssa and suspend it. then have my wife file (she is 2 years younger) and suspend her account and draw off my account. she want to keep working so she will also suspend her account. being i have mine in suspension so we get her part of my account and then i have some from the 401 and her share of my account. then when i turn 70 i get the larger amount from my account. now i have not worked for a few years how does the ssa figure the payment when i have no earnings for the last 5 years?
can anyone tell me if this is a doable plan? if so will suspending and no earning still get me an increase for the next 4 years or will the payment i would get by taking payments at 66 be the same at 70 because i did not earn anything for those last few years? i asked ssa and they beat around the topic so i figure here someone may have done that already? thanks
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Sat May 30, 2015 9:41 pm |
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Wino
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I think the only thing you have omitted is that she's going to have to pay very high taxes based on what she earns. I think up to 50% (or more) of the SS she gets on your suspended account is going to disappear in fees due to her still earning when drawing.
I'm not certain of this last. I'm certain is she is drawing her own (or you drawing your own) that you lose 1/2 the money (or more) if you're still working and drawing. Perhaps someone else knows the details or is willing to look them up and report the exact breakdown. I'm just too lazy to google this.
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Sun May 31, 2015 1:00 am |
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corvairbob
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she is going to keep working and suspend her ssa account. i will not be working but use that money for income. and we know it will be about 50% for now, then my account should grow less the zero's for the las few years i don't work. then later when she feels like retiring for herself her account should be more as well.
as far as 50% in taxes the ssa did not say there would be an increase in taxes for that income. but like i said they don't always tell you everything. but she did a future tax workup and did not see that much in tax increase. maybe others will add to this discussion and be able to say for sure what that would be. thanks
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Sun May 31, 2015 1:35 am |
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Wino
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quote:
Originally posted by corvairbob
she is going to keep working and suspend her ssa account. i will not be working but use that money for income. and we know it will be about 50% for now, then my account should grow less the zero's for the las few years i don't work. then later when she feels like retiring for herself her account should be more as well.
as far as 50% in taxes the ssa did not say there would be an increase in taxes for that income. but like i said they don't always tell you everything. but she did a future tax workup and did not see that much in tax increase. maybe others will add to this discussion and be able to say for sure what that would be. thanks
http://www.ssa.gov/pubs/EN-05-10069.pdf
The URL above shows the brochure for working when below retirement age. You lose $1 for every three dollars over about $41K (annual). You "get it back" when you retire, but I didn't bother to read about that. If she earns around $60K, you probably won't see anything from your SS.
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Sun May 31, 2015 3:27 am |
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corvairbob
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quote:
Originally posted by Wino
quote:
Originally posted by corvairbob
she is going to keep working and suspend her ssa account. i will not be working but use that money for income. and we know it will be about 50% for now, then my account should grow less the zero's for the las few years i don't work. then later when she feels like retiring for herself her account should be more as well.
as far as 50% in taxes the ssa did not say there would be an increase in taxes for that income. but like i said they don't always tell you everything. but she did a future tax workup and did not see that much in tax increase. maybe others will add to this discussion and be able to say for sure what that would be. thanks
http://www.ssa.gov/pubs/EN-05-10069.pdf
The URL above shows the brochure for working when below retirement age. You lose $1 for every three dollars over about $41K (annual). You "get it back" when you retire, but I didn't bother to read about that. If she earns around $60K, you probably won't see anything from your SS.
she earns about 25k per year. so i don't think that will be a problem. but maybe other will have the best figures?
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Sun May 31, 2015 12:36 pm |
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blixet
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If your spouse files for SS before her full retirement age, she cannot file a restricted claim for spousal benefits. She will be "deemed" to be filing on her own account and cannot suspend her own benefits until later. Her benefit will be permanently reduced for filing early. Also as mentioned, the portion of her earnings above the current annual earnings limit of $14,720 will cause her benefit to be reduced. At FRA, benefit would then be recalculated to account for the earlier time that experienced the reduction.
For your plan to work, she needs to delay claiming until FRA and then file a restricted claim for spousal benefits only. But you should still file and suspend at your FRA so that you protect your right to a full retroactive claim back to 66 if you need to in the future.
Information is more valuable sold than used – Fischer Black
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Sun May 31, 2015 12:50 pm |
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corvairbob
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thanks that was my second thought and question. i will be talking to the merrill lynch advisor next week and get there opinion on all this as well. i asked this same question to the ssa and they had a completely different story. that is why i asked this here to see what some other have done. next year when i retire and start taking some out of my 401 i can go on the wife's insurance that will cost me 100.00 a month. i think i can postpone the a,b,c,d,e,f,g,h medicare stuff while i'm getting here insurance but not sure about the medicare itself? i think i have to put in for that, and i may still ahve to pay my share for the year i'm not working. what is the real way to do that?
it is sounding like i have to file at 66 and suspend it and then when the wife turns 66 2 years later have her do the same. and the way blezet is saying she waits till she is fra then she can file against me. and then wait till she is 70 also. that way we both get to claim the max.
some have told me what if i die and i tell them to me it does not matter i have the money to get by good till the ssa kicks in and then i have a fairly decent retirement to live a bit above my comfort level.
tell me this one guy i talked to said he collected all his ssa and banked it how does that wwork?
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Tue Jun 02, 2015 1:07 am |
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oldguy
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quote:
i think i can postpone the a,b,c,d,e,f,g,h medicare stuff while i'm getting here insurance but not sure about the medicare itself?
The medicare rules say that if you postpone the insurance past your 65 th birthday, your premiums will be higher for the rest of your life. So be sure to check that out.
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Tue Jun 02, 2015 2:37 am |
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corvairbob
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yes i know about that and will get that taken care of then thanks but the parts art the big problem just what types to apply for. i even had one guy tell me he is using sflac. i did not know aflac did that type of coverage. or he is all wet and trying to pull my leg.
thanks
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Tue Jun 02, 2015 9:03 am |
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corvairbob
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pk tell me is it possible to get a lump sum from the ssa? and if so how do they figure out what to get to you for that payoff?
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Fri Jun 05, 2015 12:46 am |
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