Spousal Social Security

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Leroy Jones
Posts: 86
Joined: Thu Nov 16, 2017 7:14 pm

Spousal Social Security

Post by Leroy Jones »

Friends, I am considering a plan to utilize the Spousal benefit with a restricted application to Social Security next year. MY wife will turn 66 in January and I'll turn 66 in March and since we were born before January 2, 1954 we should qualify for this benefit. When she files for her full PIA, I'm going to file for half of hers based on her work record when I turn 66. I'll continue to get half of hers until I reach 70 when I will take SS based on my own record. At sixty six, if we both took social security then, I would get about 200 dollars a month more than hers. By taking the spousal and waiting until 70 for mine I'll get about $1000 more than her benefit every month. If she should outlive me then she gets the increased amount for life. This will allow us to spend more down from our IRA's or convert more to Roth's. Is this a safe plan? Obviously none of us know how long we'll live but life is full of unknowns. :sharebeer
Chip
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Joined: Wed Feb 21, 2007 3:57 am

Re: Spousal Social Security

Post by Chip »

It's a good plan on its face. I'm assuming you have a plan to manage cashflow to age 70.

There have been some discussions here about potential/actual problems in getting SSA to properly execute the restricted filing. It may be safest to actually go to a social security office in person (both of you) to execute your plan. Though I believe some here have successfully done it online.

There are several threads here about the subject. Search on "restricted filing".
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FrankLUSMC
Posts: 300
Joined: Tue Nov 28, 2017 12:43 pm

Re: Spousal Social Security

Post by FrankLUSMC »

That is a good plan and what I was planning on until they changed the rules. I'm a '57 and wife a '58 model year. So no go for us now.
dknightd
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Joined: Wed Mar 07, 2018 10:57 am

Re: Spousal Social Security

Post by dknightd »

FrankLUSMC wrote: Wed Mar 21, 2018 3:06 pm That is a good plan and what I was planning on until they changed the rules.
+1
Retired 2019. So far, so good. I want to wake up every morning. But I want to die in my sleep. Just another conundrum. I think the solution might be afternoon naps ;)
mtnlover
Posts: 263
Joined: Mon Jul 14, 2014 8:50 am

Re: Spousal Social Security

Post by mtnlover »

We did exactly what you have described. Application date (in person with documents like marriage license from 1974) on Feb 13, 2018. We have yet to receive an approval from SS. I check status online weekly and get the message "processing" All of which is to say that you should apply for spousal restricted benefits three months ahead of your birthday, if you want to have the approval by your birthday.
dowse
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Joined: Tue Sep 10, 2013 3:10 pm

Re: Spousal Social Security

Post by dowse »

Chip wrote: Wed Mar 21, 2018 10:32 am It's a good plan on its face. I'm assuming you have a plan to manage cashflow to age 70.

There have been some discussions here about potential/actual problems in getting SSA to properly execute the restricted filing. It may be safest to actually go to a social security office in person (both of you) to execute your plan. Though I believe some here have successfully done it online.

There are several threads here about the subject. Search on "restricted filing".
I just completed a restricted application. I submitted it online in December. It takes affect this month with the first actual payment next month. I too struggled with whether to apply online, in person or on the phone. You can find anecdotes in various threads on this topic where problems were encountered regardless of the method. Also, there are anecdotes of smooth sailing for each method. In the end, I don't think any method is necessarily best, as it all comes down to the competence of the human who handles your claim. Regardless of the method by which you submit, it will go to a human at some point. I decided that for me, the risk seemed to be about the same, so I used the online method for convenience. It seems to have worked out fine for me. I won't truly rest for another four years when I apply for benefits under my own record, but since I was eligible for both spousal and my own and was awarded spousal as requested, I think I'm good. Good luck!
rixer
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Joined: Tue Sep 11, 2012 4:18 pm

Re: Spousal Social Security

Post by rixer »

I'd say go for it if you can, it's a great deal. We went the restricted application route. I was able to collect spousal income while my benefit continued to grow. I finally took my own benefit at 68 and a half. It worked well for us.
JW-Retired
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Joined: Sun Dec 16, 2007 11:25 am

Re: Spousal Social Security

Post by JW-Retired »

Leroy Jones wrote: Wed Mar 21, 2018 9:48 am When she files for her full PIA, I'm going to file for half of hers based on her work record when I turn 66. I'll continue to get half of hers until I reach 70 when I will take SS based on my own record. At sixty six, if we both took social security then, I would get about 200 dollars a month more than hers. By taking the spousal and waiting until 70 for mine I'll get about $1000 more than her benefit every month. If she should outlive me then she gets the increased amount for life. This will allow us to spend more down from our IRA's or convert more to Roth's. Is this a safe plan?
It's precisely what wife and I did many years back. You are still eligible to do the same. I recommend doing it via a phone application since our on-line thing was going astray for us before we caught it just in time. SSA is used to most people applying for the highest benefit they can get ASAP and they seemed to go that way without reading anything else in our online application.

In the phone application you can cross examine the SSA person so they truly grasp what you want to do.
JW
Retired at Last
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HueyLD
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Joined: Mon Jan 14, 2008 9:30 am

Re: Spousal Social Security

Post by HueyLD »

A friend who is a social security expert provided the following out of the box advice:

“She will be 66 in Jan 18, he will be 66 in Mar 18. The plan: she files in Jan for her own, and he files in March for "half of hers."

Note that he didn't say half of her what, her Primary Insurance Amount (PIA) or her benefit. If she indeed files in Jan at her FRA, then both are the same, but might there be a better plan?

What if she waits until March to file, when he files as well? He will still get half of her PIA, and she will get two delayed credits, increasing her benefit by (2/12) of 8% or 1 1/3%. Now the increase won't start until Jan 2019 (unless it is the year you turn 70, DRCs are effective in January), but they will get this extra money as long as they both live. [Note that he said their PIAs were close, but not in so many words, so she will not switch to a wife's benefit when he claims at 70.]

If they both live a long time, her waiting two months will give them more each month, and if the goal is to have a higher income when they are older, this does it. Since he is waiting until 70, I conclude that is their actual goal, higher income when they are older.”
Beehave
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Joined: Mon Jun 19, 2017 12:46 pm

Re: Spousal Social Security

Post by Beehave »

My thoughts/suggestions:

. 1 . Apply in person and claim in person. You get printouts and you can discuss them with a knowledgeable agent. There are questions when claiming that are difficult to understand when you fill out the form.

. 2 . It makes good sense to delay when claiming on your spouse if you have the cash flow or resources to allow for this. You can run cases on immediateannuities.com to get an idea of how big a bargain you are getting by doing what you're planning (the comparison of annuity-to-Social Security is not apples-to-apples but you can still get a good idea from it).

. 3 . Be aware of what will happen when you start collecting at age 70. In addition to much higher monthly Soc'l Sec income, you will also have RMDs (required distributions from any 401ks or IRAs or 403bs you have). Your income will thus go up significantly. Higher income is a nice problem to have, but it results in higher taxes (and even, potentially, higher Medicare premiums). You should take this into account in your future planning. One thing to consider is whether you might want to withdraw some money from IRAs or 401ks and converting that cash into a Roth IRA between the ages of 66 and 70. That may help reduce RMDs and thus help when you turn 70.

Best wishes.
Topic Author
Leroy Jones
Posts: 86
Joined: Thu Nov 16, 2017 7:14 pm

Re: Spousal Social Security

Post by Leroy Jones »

Thanks for all the additional info. I'm aware of the RMD's at 70.5 and I understand that I must keep income below $170,000 to avoid higher Medicare premiums. I don't think the $170,000 income threshold will be a problem for many many years if ever. If anyone has other ideas I would appreciate hearing them.
Thanks
Leroy Jones
dowse
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Joined: Tue Sep 10, 2013 3:10 pm

Re: Spousal Social Security

Post by dowse »

I think all those who choose to file online will still get an opportunity to interact with a real person. Within a few days of submitting my application, I got a call from a social security worker to confirm what I had submitted was what I wanted. The worker also wanted to speak to my wife to confirm the status of the marriage. The worker remained a contact throughout the application process for any additional questions. Others have reported the same experience in other threads. Things can go haywire with any method. Pick your poison.
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bengal22
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Location: Ohio

Re: Spousal Social Security

Post by bengal22 »

I filed a restricted spousal benefit in December and I found the process very easy and my concerns unfounded. I did it online. There is a box to check saying you want a spousal benefit and I also made a brief statement in the comment section. Within a week, I received a phone call to make sure that I wanted a spousal restricted benefit. So far so good. I would recommend doing it online and if you are nervous give them a call.
"Earn All You Can; Give All You Can; Save All You Can." .... John Wesley
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bengal22
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Location: Ohio

Re: Spousal Social Security

Post by bengal22 »

instant replay
"Earn All You Can; Give All You Can; Save All You Can." .... John Wesley
vested1
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Joined: Wed Jan 04, 2012 3:20 pm

Re: Spousal Social Security

Post by vested1 »

I screwed mine up by filing a week too early, so have to refile my restricted application again in April. My wife was born on the same day as me so I figured if she filed a day before me, her for her own, and mine for 1/2 of her PIA, that it would be OK. It turns out that a restricted application can only be filed 3 months before FRA, while a regular filing for one's own benefit can be filed 4 months before it is to begin.

I called the 800 number because I had a question on my online application and was told that a restricted application was no longer available, and when I tried to correct the agent she hung up on me, this after an hour on hold. If she would have answered my question I could have avoided the mistake. We filed them both on line and my wife's went smoothly, but we visited the local SS office to withdraw my application made too soon, simply because I had to sign a form to withdraw it. We'll go back in person in April. I found the agent we talked to in person very knowledgeable.

If you are applying online for a restricted application make sure you select "spousal benefit only" at the beginning of the application. Any mistakes can be cleared up when they call you back to confirm your selections.
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