1) I'm receiving survivor benefits. In October, I expect to turn 62. Can I file for my own benefits at 62 and at age 66 and 4 months resume my husband's benefits?
2) Before my husband passed, he had filed for disability and received one month of social security benefits of approximately $2400. After he passed, my daughter (who was under 16 when he passed but is now 17) and I each began receiving just under $2,000 monthly. Once my daughter stops receiving benefits because she is past the age of eligibility, can I receive my husband's higher rate of about $2,400?
3) I am attempting to strategize in the event I begin to earn a wage (due to starting a business). I understand that if I earn over the allowable wage of $17,040 for 2018, social security will reduce my benefit by $1 for every $2 earned over $17,040. To clearly make my point, if I earn $200,000 in 2018, SSA will reduce my benefit by $91,480. If my benefit is $22,000 annually (or $88,000 over four years), with the SSA reduction, I would essentially stop receiving benefits each year. Based on that one year earnings, benefits would stop for slightly over four years. Did I calculate that correctly? If so, what is the cumulative effect of this if I continue to have high earnings each year?
4) By the time I am full retirement age of 66 years and 4 months, it wouldn't matter how much I earn. Upon attaining full retirement age, would the $88,000 (and any additional) be factored in and restored over the remainder of my benefit years?
Hi,
If you're receiving widow's benefits that are reduced for age then the answer to your first question is no. However, if you're receiving survivor benefits on the basis of having a child in care and those payments stop you could potentially file for reduced retirement benefits on your own record as early as age 62 and then file for unreduced widow's benefits at your full retirement age (FRA).
If you receive child in care spousal benefits that are reduced due to the family maximum benefit and your child stops receiving benefits, you would have to wait until FRA to start drawing widow's benefits in order to be able to receive your husband's full rate. If you file for widow's benefits prior to FRA your benefit rate will be reduced for age.
Social Security's earnings test is applied on an annual basis. If your Social Security benefits amount to $22,000 annually and you earned $200,000 this year you would not be due any benefits for 2018. But, your 2018 earnings would not affect your 2019 benefits. Regardless of how much you earn this year you could be paid all of your 2019 benefits as long as you don't earn more than 2019 earnings test exempt amount next year.
If you receive widow's benefits prior to FRA that are reduced for age and some of your benefits are withheld due to the earnings test, your benefit rate would then be recalculated after you reach full retirement age to remove the reduction applicable for months that benefits were withheld due to the earnings test. For example, say you file for reduced widow's benefits 4 years prior to FRA and your benefit rate is reduced for age by 19%. If you ended up receiving benefits for the equivalent of only 2 of those years due to your earnings, the reduction in your rate would then be adjusted from 19% to 9.5% effective at FRA.
It sounds like you have a number of possible options available to you and you'll want to make sure that you choose the one. You should strongly consider using our maximization software to compare your options and determine your best filing strategy.
Best, Jerry
