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Q: As a follow-up to your mainstay last week, could you insist a associated Social Security subject that might stroke my Social Security benefit?
I worked for a internal supervision and will embrace a small grant from that practice dual years from right away when I spin 65. My father worked in the in isolation zone and has regularly paid Social Security taxes on his earnings. When I worked, I did not compensate in to the Social Security system.
His Social Security benefits will be about $2,000 a month, and we insincere that I would embrace half of his if I waited until my full early retirement age. It even says so on his statement. A crony told me they thought my grant will be marked down if I take half of his Social Security. Can they do that? If so, am I still improved off receiving half of his Social Security so I will get 100 percent of his good if should predecease me?
With the assault of timid baby boomers, Social Security will be a renouned subject this decade.
Like the Windfall Elimination Provision, or WEP, discussed in last weeks column, the Government Pension Offset, or GPO, might stroke Social Security benefits for a little people authorised for a federal, internal or state supervision grant where no Social Security taxes were paid.
The main disproportion is that the GPO relates if a associate or flourishing widow or widower has a grant from a pursuit in that no Social Security taxation was paid and the WEP relates if the workman has the pension, not the spouse. The WEP will revoke the wedding Social Security benefit, but the rebate of this wedding good will be separated if the workman dies and the associate receives a survivor benefit. The GPO reduces the wedding Social Security good as well as the survivor benefit.
The GPO will have no stroke on your pension. Neither the WEP nor the GPO good reductions are reflected in the Social Security statements. Social Security doesnt know either you or your associate are entitled to pensions from non-Social Security jobs until you request for benefits and are asked to yield this information.
Your Social Security benefits will be marked down by two-thirds of your supervision pension. If your grant is $600 and your wedding Social Security good is $1,000, your good will be marked down to $600 ($1,000 rebate two-thirds of $600). If your father dies prior to you and his Social Security good is $2,000, you will embrace a wedding survivor good of $1,600, not $2,000. The volume of your grant will not change.
If you elect to embrace your grant as a pile sum, your wedding and survivor Social Security benefits will still be reduced. The Social Security Administration will work out the rebate as if your grant was paid out monthly. Call 800-772-1213 or revisit www.ssa.gov for some-more information.
Holly Nicholson is a approved monetary planner in Raleigh. Reach her at www.askholly.com or P.O. Box 99466, Raleigh, NC 27624. She cannot answer each question.| _______________________ |
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