Today’s column addresses how suspended retirement benefits are reinstated at 70, earnings test exempt amounts, survivor benefits and remarriage, whether rental income counts as wages or salary and how checks are handled after a death. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, a company that markets Maximize My Social Security and MaxiFi Planner.
See more Ask Larry answers here.
Ask Larry about Social Security here.
Does My Husband Need To File At 70 Or Will Social Security Benefits Start Automatically?
Hi Larry, My husband will be turning 70 next month. He is still working but plans to stop in the near future. In early 2016 he filed and suspended, and I began spousal benefits at that time. I also will be turning 70 in November. Does he need to file for benefits beginning this month, or do his monthly Social Security benefits automatically begin on the day he turns 70? Any advice you may give us is greatly appreciated. Thanks, Patti
Hi Patti, If your husband already filed for and suspended his benefits, they should start automatically effective the month he reaches 70 , so if that’s October then his first payment would be due in November. Your spousal benefits won’t change when your husband starts drawing his benefits, but if you would be eligible for a higher benefit rate based on your own work record you would want to file your Social Security retirement benefits no later than the month you reach 70. Best, Larry
If I File At Age 62 And Earn Under $17,000 Yearly, Will Social Security Deduct Any Benefits From Me?
Hi Larry, If I claim at 62, and continue to work part time earning under $17,000 yearly, will Social Security deduct any benefits from me? If so, how would that be implemented? Thanks, Brandy
Hi Brandy, Social Security won’t withhold any of your benefits due to your earnings if you earn less than $17,640 this year. The earnings test will be applied to your earnings up to the month you reach your full retirement age (FRA). The annual exempt amount rises somewhat each year and $1 is deducted from your benefits for every $2 you make over the limit. But also note that in the year you attain your FRA, the exempt amount for you is significantly higher and $1 is deducted only from each $3 you make over that higher limit. You may want to use one of my company’s two tools — Maximize My Social Security or MaxiFi Planner — to help maximize your lifetime Social Security benefits. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
Can I Collect On My Deceased Husband’s Social Security Even Though I Remarried At Age 31?
Hi Larry, My husband died when he was 29. I remarried at 31 and I am now 60. Can I collect widow’s benefits on my deceased husband’s Social Security record even though I remarried at 31? Thanks, Sara
Hi Sara, Not if you’re still married. However, you could potentially qualify for widow’s benefits on your previous husband’s record if you’re no longer married. A remarriage prior to age 60 (or age 50 if the widow is drawing disabled widow’s benefits) bars possible eligibility for widow’s benefits on a prior spouse’s record throughout the duration of the remarriage. Best, Larry
If You Own And Rent Shop Premises, Would Your Social Security Benefits Be Affected By Your Income?
Hi Larry, If you own and rent shop premises, would your benefits be affected by the income you receive in rent? Thanks, Cal
Hi Cal, Your income would only count for Social Security earnings test purposes if you are active in the business operating on your property and are thus required to report your income as self-employment earnings or wages. If you simply rent the property to someone else and report your income as rental income, that income wouldn’t count for purposes of Social Security’s earnings test. Best, Larry
If A Person Dies On April 1st, Must Their Social Security Payment Received On April 10th Be Returned?
Hi Larry, If someone died on April 1 and their payment was due April 10, does the payment have to be returned? Thanks, Bruce
Hi Bruce, The payment would be due, but must be returned and reissued to the person eligible to receive it as an underpayment. A deceased person obviously can’t endorse a check that arrives after their death, and the same principle still applies even when the payment is issued by direct deposit and no physical check is involved.
Social Security has a specific priority order for payment of an underpayment, and a preferred form to be used for claiming an underpayment. All of that information can be found on following Social Security website. Best, Larry
To learn more about your Social Security options, visit Economic Security Planning, Inc.