My sister in law Katherine is 64 (DOB 09/1954), widowed, but working full-time as nurse (estimated salary $48,000). Can she keep working to build her SS benefit; but receive survivor benefit from her late husband without reduction ($1 per $2) based on her earnings??

Thanks,
Bob

Hi Bob,

Your sister in law couldn't earn that much and receive benefits without any withholding, but she still might be due some benefits depending on her benefit rate. Social Security would need to withhold $1 of benefits for each $2 that she earns in excess of $17,040 this year (https://www.ssa.gov/planners/retire/whileworking.html), or roughly $15,480 if she earns $48K. But that still may leave some benefits payable if she has a high enough monthly benefit rate.

It sounds like Katherine's best strategy would be one of the following:
1) File for reduced widow's benefits as soon as her earnings will permit at least some benefits to be paid, then switch to her own record at age 70; or,
2) File for reduced retirement benefits on her own record as soon as her earnings will permit at least some benefits to be paid, then file for unreduced widow's benefits at her full retirement age. However, if Katherine's husband received reduced retirement benefits prior to his death that could affect the optimal time for her to claim widow's benefits.

Normally, Katherine would want to start out drawing the lower benefit first and then switch to the higher record when it reaches it's highest potential rate. Our maximization software could sort all of this out for her and help her determine her best filing strategy.

Best, Jerry