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My salary is close to 100, and relatives making similar say you can continue to work f/t and collect soc sec once you reach the age (62 or 65, depending on whether you want to collect more or less, from then on). Is that true?
Please confirm.
why not go to http://www.ssa.gov/ and either research it or ask the experts there. asking here will give you as many different answers as there are posters.
My husband was just forced to take early social security (forced due to our financial circumstances), at age 63. If you file at age 66 (I don’t think it is 65 any more, but I could be mistaken), you can earn as much as you want without losing benefits.
If however, you take EARLY ss, that is a whole other ball of wax. You cannot earn more than (I believe) $14,650 for each calendar year. If you do, they will deduct $1 for every $2 that you earn above that allowed amount, as was explained to us. So if you earn 10K above $14,650, they will hold back checks equalling 5K, until the next January. This can result in you actually not receiving a number of ss checks, until the amount that they are deducting has been met. Unless you are earning a REALLY large amount of money, it is not probably not worth it, and you should wait until regular retirement to collect, because you can earn whatever you want then, with no restriction. You also earn less with early social than if you waited. OTOH, you could collect for several years before age 66, so it’s up to you. If we didn’t have to do it, my husband would not have applied so early, most likely.
If you are at retirement age making the amount you are speaking of. Whatever your retirement benefit you are entitled to will be reduced by $1 for every $3 earned until you stop working. Plus you will pay almost 40% taxes on the benefit.
If you are earlier than maximum retirement age, then whatever your benefits are supposed to be will be reduced by $1 for every $2 eraned. Plus you will pay a whopping 85% tax on the benefits.
Enjoy retirement if you can afford it!
any CPA’s in the house?
no need to excuse yourself for making more than 100K, no need to be ashamed of that.
you asked a true/false question. not an open ended “what is your opinion of…” question
I hope you got or will get the advice that you are seeking
Many of the finance websites, like smartmoney have social security calculators. The Wall Street Journal also has some good advice. Basically, if you live to a ripe old age you would do better collecting at age 70. (maximum benefits and no earnings deduction)
Any earnings, even after retirement, will increase the benefit you are eligible for. If your spouse also works, there are ways to use both benefits to your best advantage.
oomis1105 is basically correct. Once you reach 65 or 66 or 66+
(depending upon when you were born. they keep raising the age)
you can collect your full social security and earn whatever you like. If you choose to wait to collect and only start collecting
at age 70, your benefit will be still more (about 8%) for each year you wait.
You are not taxed at the rate of 85%, as artchill wrote. You may be taxed on 85% of your social security benefits (at whatever your tax rate is)depending upon your total other income
(salary, interest, dividends, capital gains, etc.)and 1/2 your social security…..It has nothing to do whether you take early
retirement/ your age, etc. The tax rate on which you pay is the same as what you pay on all your other income….
Whether it is smart to collect early depends on your life span.
If you know someone with Ruach Hakodesh, you can calculate the best option, so as to maximize your benefits.
Forgot to say that you can go to SSA.GOV and play with their worksheets, inputting all kinds of scenarios. For example, since
s.s. looks to your 40 highest years, you might want to work and wait with collecting to bring your average up, especially if you haven’t worked 40 years.
hadassa, I think you mean 40 highest quarters, not 40 highest years.
no. i mean 40 highest years! 40 quarters is the minimum to qualify for s.s. 40 years are the look-back years to compute earnings.
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