1) I am 64 and 4 month. My full retirement age is 66.
2) I want to apply for early retirement benefit (today)
3) My kid is 14 years and 4 months
4) My wife is 47 years old.
If I apply for the benefit now, I won't receive any amount because my income earnings is way over the limit ($17,040 in 2018). In this case, my wife and my kid (1) may qualify to receive some amount based on my retirement benefit.
questions: If the kid and my wife are quality to receive their benefit, when do they get the benefit amount ?
now (at my age 64 and 4 months) or later when I reach the full retirement age 66)?
If they could receive the amount when I apply for the benefit at this time, how much they can receive? and how the payment is delivered?
Thank you
Hi,
The benefit rate that each eligible child and spouse with a child under age 16 or disabled child in care could potentially receive on the account of a living worker is 50% of the worker's full retirement age rate (PIA). However, if more than one family member is eligible for benefits, the rates actually payable would be reduced due to the family maximum (https://www.ssa.gov/OACT/COLA/familymax.html).
The $1 for $2 withholding rule under Social Security's earnings test (https://www.ssa.gov/planners/retire/whileworking2.html) applies to all benefits payable on your record, not just your own. Therefore, if you file now and earn more than $17,040 this year, Social Security will not pay your wife and child for any months that you can't be paid.
For example, say Bob has a full retirement age rate (PIA) of $2000 and his wife and child are each eligible for $750 from his record. Bob files for benefits in January 2018 at age 64 1/2 at a reduced benefit rate of $1800. Bob's reduction doesn't affect the rate of his wife and child's benefits, so the family is eligible for total monthly benefits of $3300 (i.e. $1800 + $750 + $750) per month.
However, Bob is still working and will earn $83,040 this year. Bob's excess earnings, therefore, are $66,000 (i.e. $83,040 - $17,040), so Social Security needs to withhold $33,000 (i.e. $66,000/2) of benefits before any payments can be made on his record. In order to withhold the $33,000, Social Security would not pay Bob or his wife or child for the first 10 months of 2018. All 3 family members could then be paid their benefits for the months of November and December.
Our maximization software can handle cases involving both family maximum and earnings test considerations, so you may want to strongly consider using it in order to determine your best overall filing strategy.
Best, Jerry
