I will be 65 on June 24th, so I am planning to retire. I have worked hard my whole life and am ready to reap the rewards of my hard labors. So, in all one breath, this individual is filing for Medicare, retiring, drawing his/her Social Security and celebrating 65 years. Does it have to be all at one time?
That depends on many variables. At a minimum, file for your Medicare Part A at age 65; this is very important. You don’t want to procrastinate with Medicare deadlines as they can be very costly. We do not handle Medicare issues, but there are many professionals that do. So, you picked your birthday as your retirement date….why? Because it sounded good, or did you have a plan that took into consideration the rules and regulations that apply to your situation?
If still working, depending on your birthday month, drawing your Social Security benefit needs to be a strategically calculated decision. The Earnings Limitations Rules can be very costly if retiring prior to your Full Retirement Age. Monthly Social Security benefits may be reduced or eliminated due to the Earnings Test. By making small adjustments, you can have a much more fruitful retirement plan. But by filing, and just continuing to work, you could be hurting your revenue source and not realize what you did. These are the phone calls we get from folks that do not understand the rules and want to change what they have just done.
The year you turn Full Retirement Age, the Earnings Limitations rule changes to a much higher threshold, and that needs to be calculated into your plan. If your birthday is one of the later months of the year, you could greatly benefit by waiting to draw because of this increase. The year you start drawing benefits, there is another exception to the rule based on a monthly calculation of earnings.
In the event that other family members are entitled to benefits based on your work record (spousal benefits and/or child benefits), the earnings test will also reduce their benefits as well as yours if your earnings exceed the applicable threshold.
The good news is that people are starting to understand the need for a professional review before filing. Your date to file for Social Security really should have nothing to do with your birthday, but everything to do with what financially best serves you and your family. People are researching on their own, getting
frustrated or confused, but continuing that search for a professional review to nail down the rules and regulations. Education never hurt a single soul!
Pillars LLC is in the Corinth, MS area but service all 50 states. Roy and Diane are both National Social Security Advisors and Roy is a former CPA of over 40 years. You may contact them at firstname.lastname@example.org, on their website at www.pillarsllc.com or call at 601-954-0699. KNOW before you GO!!