Do I tell Social Security I retired?

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Flymore
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Do I tell Social Security I retired?

Post by Flymore » Mon May 14, 2018 7:51 pm

Retired over a year ago at 60, do I need to tell Social Security I'll have no more income?
If so where do I do it? I've signed into the Social Security website and haven't been able to find any information.

thanks

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munemaker
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Re: Do I tell Social Security I retired?

Post by munemaker » Mon May 14, 2018 7:53 pm

Flymore wrote:
Mon May 14, 2018 7:51 pm
Retired over a year ago at 60, do I need to tell Social Security I'll have no more income?
If so where do I do it? I've signed into the Social Security website and haven't been able to find any information.

thanks
No, there is no provision for you to tell them you retired, and they don't care.

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obafgkm
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Re: Do I tell Social Security I retired?

Post by obafgkm » Mon May 14, 2018 7:55 pm

Flymore wrote:
Mon May 14, 2018 7:51 pm
Retired over a year ago at 60, do I need to tell Social Security I'll have no more income?
I think Social Security will figure it out when there is no payment to your record from your employer (and no W-2 to the Internal Revenue Service).

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cheese_breath
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Re: Do I tell Social Security I retired?

Post by cheese_breath » Mon May 14, 2018 7:55 pm

You don't have to tell them you have no income. They'll know. They know everything.
The surest way to know the future is when it becomes the past.

JoeRetire
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Re: Do I tell Social Security I retired?

Post by JoeRetire » Mon May 14, 2018 8:09 pm

Flymore wrote:
Mon May 14, 2018 7:51 pm
Retired over a year ago at 60, do I need to tell Social Security I'll have no more income?
If so where do I do it? I've signed into the Social Security website and haven't been able to find any information.
No need.

Social Security doesn't care if your retired or not - being retired doesn't change anything. They only care about your income - which they will learn by themselves.

If you retired over a year ago, your diminished income should already be reflected on their earned income page. Go to SSA.gov and check for yourself, to make sure they got it right.

vested1
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Re: Do I tell Social Security I retired?

Post by vested1 » Tue May 15, 2018 8:36 am

Also be aware that the word "retired" or "retirement" means something entirely different to SS, as they equate it with a request for benefits. I would suggest staying off of their radar until you want to file.

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BolderBoy
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Re: Do I tell Social Security I retired?

Post by BolderBoy » Tue May 15, 2018 10:17 am

vested1 wrote:
Tue May 15, 2018 8:36 am
Also be aware that the word "retired" or "retirement" means something entirely different to SS, as they equate it with a request for benefits. I would suggest staying off of their radar until you want to file.
This is good advice. Follow it. In the meantime, since you registered for an on-line account with them, do fetch your SSA Statement from time-to-time.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

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Flymore
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Re: Do I tell Social Security I retired?

Post by Flymore » Tue May 15, 2018 2:41 pm

Thanks for all the info.
Yes, got my latest statement, just says "not recorded yet" for last years earnings.
Anyway, the rest looks fine.
I'll be eligible for benefits in January, still haven't decided to start then or not.

They're probably reading this post. :D

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mickeyd
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Re: Do I tell Social Security I retired?

Post by mickeyd » Tue May 15, 2018 3:48 pm

I'll be eligible for benefits in January, still haven't decided to start then or not.
Delay that as long as possible. The longer the delay, the more the pay.
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GerryL
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Re: Do I tell Social Security I retired?

Post by GerryL » Tue May 15, 2018 4:31 pm

Just got back today from about a month of travel and found a letter from the SS office alerting me to the fact that it makes no sense to delay SS beyond age 70 and that I should file my return so I can start collecting when I hit the magic age in September. I already had "file for SS" on my to-do list for when I returned but was surprised to find that the SS office is keeping track of those of us who are delaying filing.

grok87
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Re: Do I tell Social Security I retired?

Post by grok87 » Tue May 15, 2018 5:17 pm

GerryL wrote:
Tue May 15, 2018 4:31 pm
Just got back today from about a month of travel and found a letter from the SS office alerting me to the fact that it makes no sense to delay SS beyond age 70 and that I should file my return so I can start collecting when I hit the magic age in September. I already had "file for SS" on my to-do list for when I returned but was surprised to find that the SS office is keeping track of those of us who are delaying filing.
Thanks. That is good to know.
Cheers
Grok
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youngpleb
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Re: Do I tell Social Security I retired?

Post by youngpleb » Tue May 15, 2018 6:15 pm

cheese_breath wrote:
Mon May 14, 2018 7:55 pm
You don't have to tell them you have no income. They'll know. They know everything.
Everything except for where the money is going to come from 30 years from now :shock:
27. Always learning.

cutehumor
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Re: Do I tell Social Security I retired?

Post by cutehumor » Tue May 15, 2018 6:30 pm

one time I got a letter from social security asking if my income was correct. It was my earnings history. I quit working to go back to school for almost three years. so, they know when you stop paying into social security.

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FIREchief
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Re: Do I tell Social Security I retired?

Post by FIREchief » Tue May 15, 2018 6:38 pm

mickeyd wrote:
Tue May 15, 2018 3:48 pm
I'll be eligible for benefits in January, still haven't decided to start then or not.
Delay that as long as possible. The longer the delay, the more the pay.
Not if the beneficiary(s) dies at a young age.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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Flymore
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Re: Do I tell Social Security I retired?

Post by Flymore » Tue May 15, 2018 7:02 pm

Let's say life expectancy is 84.
You take SS somewhere between 62 and 70, normal is 66.
If you wait till 70, much of SS is taxes away because of RMD, no?

thanks.

vested1
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Re: Do I tell Social Security I retired?

Post by vested1 » Tue May 15, 2018 7:34 pm

Flymore wrote:
Tue May 15, 2018 7:02 pm
Let's say life expectancy is 84.
You take SS somewhere between 62 and 70, normal is 66.
If you wait till 70, much of SS is taxes away because of RMD, no?

thanks.
In answer to your question, no.

I am delaying and spending down TIRA currently. I am not converting to Roth because I have a different plan to pay off our remaining mortgage in 4 years starting in January 2018. The year RMD's begin is the first year I will be mortgage free. I did a 5 year projection of State and federal taxes and found that my marginal tax rate for both will decline from what it is now (age 66 to age 70) by reducing accounts subject to RMD's. Many convert TIRA to Roth as well during the same period of delay, which accomplishes the same thing (in a much better way).

My wife has a 100% survivor 30k pension however, which makes this all more possible. That's why it's imperative to plug in your own numbers using your own circumstances in order to determine the most logical strategy for you.

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Flymore
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Re: Do I tell Social Security I retired?

Post by Flymore » Tue May 15, 2018 8:13 pm

Thanks for the info.

Tried SSAnalyze, http://www.bedrockcapital.com/ssanalyze/ not working.

There's a reference to https://www.unitedcp.com/ca12/ but I don't see the link on that page to SSAnalyze.

Is there another Social security analyzer I could try?

thanks

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Flymore
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Re: Do I tell Social Security I retired?

Post by Flymore » Wed May 16, 2018 6:44 am

It now looks like the SSanalyzer software is $300 per year.

https://www.ssanalyzer.com/site/index.php

The Wizard
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Re: Do I tell Social Security I retired?

Post by The Wizard » Wed May 16, 2018 7:55 am

Flymore wrote:
Tue May 15, 2018 7:02 pm
...If you wait till 70, much of SS is taxes away because of RMD, no?

thanks.
You might want to clarify your question.
85% of my SS is subject to Federal income tax, both before and after I start RMDs. But situations vary considerably...
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Glockenspiel
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Re: Do I tell Social Security I retired?

Post by Glockenspiel » Wed May 16, 2018 8:45 am

mickeyd wrote:
Tue May 15, 2018 3:48 pm
I'll be eligible for benefits in January, still haven't decided to start then or not.
Delay that as long as possible. The longer the delay, the more the pay.
I'd add a caveat to this: If you're still in good health, delay as long as possible. If the reason for you retiring was health-related, I could see an argument to be made for taking benefits earlier.

vested1
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Re: Do I tell Social Security I retired?

Post by vested1 » Wed May 16, 2018 8:55 am

The Wizard wrote:
Wed May 16, 2018 7:55 am
Flymore wrote:
Tue May 15, 2018 7:02 pm
...If you wait till 70, much of SS is taxes away because of RMD, no?

thanks.
You might want to clarify your question.
85% of my SS is subject to Federal income tax, both before and after I start RMDs. But situations vary considerably...
My wife and I start receiving benefits this year, and like Wizard will have 85% of SS subject to federal taxation, which will continue for the foreseeable future. Many see that as a negative, I see it as a 15% discount. There are also those who can't see the forest for the trees, concentrating on federal taxes alone and forgetting about State taxes.

State taxation is one of the most variable of factors that needs to be considered. Thirteen States tax SS, with varying and somewhat complicated formulae. https://www.kiplinger.com/slideshow/ret ... index.html

If I lived in one of those States the decision to delay would be less clear. I live in California, which doesn't tax SS income, but taxes everything else. At age 70 our combined SS will be the lion share of income and will cover all expenses. With a larger portion of income derived from a more favorably or non-taxed source, our spendable income increases dramatically.

Our combined yearly taxes at RMD and beyond will drop by about $5,000, causing spendable income to increase by that amount. Expenses will decrease by almost $16,000 due to the paid off mortgage, a net increase of $21,000 per year to do with whatever we'd like. I only provide this as an illustration of the advantages of taking all things into consideration. Of course, paying off a mortgage before retirement is far more preferable.

Don't ignore the impact of State taxes when doing your research concerning whether or not to delay.

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munemaker
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Re: Do I tell Social Security I retired?

Post by munemaker » Wed May 16, 2018 9:18 am

Flymore wrote:
Tue May 15, 2018 8:13 pm

Is there another Social security analyzer I could try?

thanks
If you have a Vanguard account at the Flagship level, you can access Financial Engines through the Vanguard web site (after you log in). Financial Engines has a nice SS analyzer that is free to Flagship customers, and possibly others (401k?) as well.

Ron
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Re: Do I tell Social Security I retired?

Post by Ron » Wed May 16, 2018 9:40 am

vested1 wrote:
Wed May 16, 2018 8:55 am
My wife and I start receiving benefits this year, and like Wizard will have 85% of SS subject to federal taxation, which will continue for the foreseeable future. Many see that as a negative, I see it as a 15% discount. There are also those who can't see the forest for the trees, concentrating on federal taxes alone and forgetting about State taxes.
I/we look at it in the same manner; however we're lucky not subject to state/local tax on our SS income. I guess you can look at it as additional savings if you wish.

For us, it comes out at just over $10k FIT tax-free on an annual basis since our current combined SS is just over $70K/year.

BTW, my wife has been receiving spousal SS for the last four years (we're under the old plan), so you can add an additional $9k tax-free income during that time for a total of over $60K received in benefits.

- Ron

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Re: Do I tell Social Security I retired?

Post by The Wizard » Wed May 16, 2018 9:47 am

Since once upon a time SS benefits were tax free at the Federal level, I think it may be short-sighted to consider 85% of benefits being taxable to be a discount, compliments of Congress...
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munemaker
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Re: Do I tell Social Security I retired?

Post by munemaker » Wed May 16, 2018 9:49 am

The Wizard wrote:
Wed May 16, 2018 9:47 am
Since once upon a time SS benefits were tax free at the Federal level, I think it may be short-sighted to consider 85% of benefits being taxable to be a discount, compliments of Congress...
Yes, people don't know the history. The government gives you (your) money with one hand, and then takes some of it back with the other.

Ron
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Re: Do I tell Social Security I retired?

Post by Ron » Wed May 16, 2018 9:51 am

The Wizard wrote:
Wed May 16, 2018 9:47 am
Since once upon a time SS benefits were tax free at the Federal level, I think it may be short-sighted to consider 85% of benefits being taxable to be a discount, compliments of Congress...
It's part of putting lipstick on a pig; you try to make any situation look better than it actually is :mrgreen: ...

- Ron

sreynard
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Re: Do I tell Social Security I retired?

Post by sreynard » Wed May 16, 2018 10:09 am

FIREchief wrote:
Tue May 15, 2018 6:38 pm
mickeyd wrote:
Tue May 15, 2018 3:48 pm
I'll be eligible for benefits in January, still haven't decided to start then or not.
Delay that as long as possible. The longer the delay, the more the pay.
Not if the beneficiary(s) dies at a young age.
If the beneficiary dies young, they aren't going to care much about their social security check. I have half a million dollars in term life insurance and I'm probably not going to see a dime from that.... :oops:

Social Security Insurance is so I don't go broke if I don't die. The life insurance is so my wife doesn't if I do.

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Flymore
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Re: Do I tell Social Security I retired?

Post by Flymore » Wed May 16, 2018 10:20 am

The Wizard wrote:
Wed May 16, 2018 7:55 am
Flymore wrote:
Tue May 15, 2018 7:02 pm
...If you wait till 70, much of SS is taxes away because of RMD, no?

thanks.
You might want to clarify your question.
85% of my SS is subject to Federal income tax, both before and after I start RMDs. But situations vary considerably...
My question is if you have an abundance of 401k money (whatever that means to you) and must be withdrawn due to RMD @70+ , then more of SS is subject to Federal income tax at that time. Right? Therefore there may be some small benefit to spending 401k money earlier (age 62+) and allow SS to grow. Maybe splitting hairs. :)


thanks.

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Flymore
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Re: Do I tell Social Security I retired?

Post by Flymore » Wed May 16, 2018 10:21 am

munemaker wrote:
Wed May 16, 2018 9:18 am
Flymore wrote:
Tue May 15, 2018 8:13 pm

Is there another Social security analyzer I could try?

thanks
If you have a Vanguard account at the Flagship level, you can access Financial Engines through the Vanguard web site (after you log in). Financial Engines has a nice SS analyzer that is free to Flagship customers, and possibly others (401k?) as well.
Yes I do, thanks I'll try that! :)

sreynard
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Re: Do I tell Social Security I retired?

Post by sreynard » Wed May 16, 2018 10:24 am

munemaker wrote:
Wed May 16, 2018 9:49 am
The Wizard wrote:
Wed May 16, 2018 9:47 am
Since once upon a time SS benefits were tax free at the Federal level, I think it may be short-sighted to consider 85% of benefits being taxable to be a discount, compliments of Congress...
Yes, people don't know the history. The government gives you (your) money with one hand, and then takes some of it back with the other.
Yes, and before that there wasn't any social security insurance. A lot of people know history, but most of us try to live in the hear and now. We can be upset about the change, but that doesn't help play the game with the current rules. Glass half empty or glass half full. They could have taxed 100%.

Actually, they give you (somebody else's) money with one hand, and then takes some of it back with the other. They already spent your money.

sreynard
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Re: Do I tell Social Security I retired?

Post by sreynard » Wed May 16, 2018 10:45 am

Flymore wrote:
Wed May 16, 2018 10:20 am
The Wizard wrote:
Wed May 16, 2018 7:55 am
Flymore wrote:
Tue May 15, 2018 7:02 pm
...If you wait till 70, much of SS is taxes away because of RMD, no?

thanks.
You might want to clarify your question.
85% of my SS is subject to Federal income tax, both before and after I start RMDs. But situations vary considerably...
My question is if you have an abundance of 401k money (whatever that means to you) and must be withdrawn due to RMD @70+ , then more of SS is subject to Federal income tax at that time. Right? Therefore there may be some small benefit to spending 401k money earlier (age 62+) and allow SS to grow. Maybe splitting hairs. :)


thanks.
Absolutely, there can be a large benefit to doing that. A lot of people annually convert some of their 401k into a Roth IRA before 70 to get their RMD's down as well. No split hairs. :)

I really recommend looking at the numbers with a spreadsheet. That can make it clear what does and doesn't make sense in your particular situation. It's really easy to build a planning spreadsheet with a row for every year and a column for every account, etc. Then you can plan for where money is coming from and where it is going and how much you can afford to spend each year, etc. It doesn't have to be perfect, but it can be fun tweaking periodically to see what is possible. As each year goes by, you can replace your projections (guesses?) with the actual numbers. Helps a lot to see if your plan is working the way you expected.

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FIREchief
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Re: Do I tell Social Security I retired?

Post by FIREchief » Wed May 16, 2018 2:48 pm

sreynard wrote:
Wed May 16, 2018 10:09 am
FIREchief wrote:
Tue May 15, 2018 6:38 pm
mickeyd wrote:
Tue May 15, 2018 3:48 pm
I'll be eligible for benefits in January, still haven't decided to start then or not.
Delay that as long as possible. The longer the delay, the more the pay.
Not if the beneficiary(s) dies at a young age.
If the beneficiary dies young, they aren't going to care much about their social security check. I have half a million dollars in term life insurance and I'm probably not going to see a dime from that.... :oops:

Social Security Insurance is so I don't go broke if I don't die. The life insurance is so my wife doesn't if I do.
I wasn't suggesting that delaying SS isn't a good plan. Just pointing out that "longer delay = more pay" is only true if the beneficiary(s) live long enough. If somebody is single and in bad health at 62, it may make sense for them to grab some of the money while they can. If they don't really need it, they can send it to me. 8-)
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

sreynard
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Re: Do I tell Social Security I retired?

Post by sreynard » Wed May 16, 2018 3:36 pm

FIREchief wrote:
Wed May 16, 2018 2:48 pm
sreynard wrote:
Wed May 16, 2018 10:09 am
FIREchief wrote:
Tue May 15, 2018 6:38 pm
mickeyd wrote:
Tue May 15, 2018 3:48 pm
I'll be eligible for benefits in January, still haven't decided to start then or not.
Delay that as long as possible. The longer the delay, the more the pay.
Not if the beneficiary(s) dies at a young age.
If the beneficiary dies young, they aren't going to care much about their social security check. I have half a million dollars in term life insurance and I'm probably not going to see a dime from that.... :oops:

Social Security Insurance is so I don't go broke if I don't die. The life insurance is so my wife doesn't if I do.
I wasn't suggesting that delaying SS isn't a good plan. Just pointing out that "longer delay = more pay" is only true if the beneficiary(s) live long enough. If somebody is single and in bad health at 62, it may make sense for them to grab some of the money while they can. If they don't really need it, they can send it to me. 8-)
You are correct and I'm sorry about that Chief. Didn't mean to put words in your mouth, er ah, post. :wink:

I think that falls under the "as possible" in Mickey's post. "As possible" starts dwindling quickly once the doctor gives you that "You have X months to live" speech. :shock:

The problem with that kind of accounting is that not everyone that feels like dying gets around to doing it in a timely fashion. Some of us are just born procrastinators.... :D

We have a family friend that was told he had 6 months. That was 20 years ago. He's been really sick for some of that time, but he still hangs in there somehow. He claims its because he's German/Irish and just too stubborn to get on with it. You really never know how long someone has, no matter how bad of shape they're in.

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