Social Security Spotlight Archives

SOCIAL SECURITY SPOTLIGHT: Filing for Retirement Benefits When You Have a Child Who is Disabled

June 7, 2019/in Cornerstone News, Monday Minute, Social Security Spotlight /by Dennis Heywood

Social Security Solutions, LLC If you have a child who was disabled prior to age 22 and has never worked, you may want to consider starting your Social Security benefits at full retirement age or, in some cases, as early as age 62. The disabled child is eligible for half of your full retirement age benefit up to the family maximum.

For example, I recently had a client (born November 1952) who attained full retirement age in November 2018 (age 66). His full retirement age benefit was $2,858 per month starting November 2018. His child, who has been mentally and physically disabled since birth, would receive $1,429 per month, effective November 2018. The family maximum on his account was $4,500 per month, so his benefit ($2,858) plus the child’s benefit ($1,429) would be paid starting November 2018 ($51,444 per year). They would draw about $205,776 by age 70. The child’s benefit continues until his or her death.

This doesn’t work for everyone, but it is something to consider if you have a child who is disabled and you are approaching retirement age. For more information, contact me to discuss your situation.

For more information please contact me.

About Dennis Heywood

Denny’s career with Social Security provides an in-depth, working knowledge of the Social Security Administration’s internal organization and processes. An expert in all phases of SSA programs: retirement, survivor, disability, and Medicare, Denny has expertise with the complex Social Security regulations based on more than 40 years of experience.

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Which Social Security Programs Pay Disability Benefits?

May 10, 2019/in Cornerstone News, Monday Minute, Social Security Spotlight /by Dennis Heywood

Social Security Solutions, LLC The Social Security Administration (SSA) administers two programs that pay disability benefits:

Social Security Disability (SSD) and
Supplemental Security Income Disability (SSI)

SSD is based on your earnings from a job or self-employment. SSI is a needs-based program with income and resource limits. Both programs use the same disability definition: You must have a physical or mental condition that is expected to last at least 12 months or end in death. Both programs have complicated rules and limits if you return to work.

Disability medical decisions are made by an agency of the state where you live, not Social Security. An adjudicator from this agency reviews your medical records and decides if you meet the SSA “disability” definition. Several factors are considered to decide if you are disabled: age, education, work experience, and the severity of the medical condition(s). Some conditions are automatic approvals, like ALS, some advanced cancers, or other terminal diseases. Other conditions, like heart conditions and stroke, require more time and information. If you are denied Social Security, you have appeal rights.

There is a five-month waiting period after your disability onset month before SSD benefits are paid. The benefit amount is based on your work record. It takes an average of four to five months to process a disability claim.

There is no waiting period for SSI and the maximum SSI benefit for 2019 is $771/month and depends on other income available to you. SSI is not payable if you have over $2000 in liquid resources (individual) or $3000 (couple). Many children with physical or mental impairments can receive SSI. A parent’s income is no longer considered for children over age 18 living with them.

For more information please contact me.

About Dennis Heywood

Denny’s career with Social Security provides an in-depth, working knowledge of the Social Security Administration’s internal organization and processes. An expert in all phases of SSA programs: retirement, survivor, disability, and Medicare, Denny has expertise with the complex Social Security regulations based on more than 40 years of experience.

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Medicare Premiums: 2019 Threshold Changes for Higher-Income Beneficiaries

January 28, 2019/in Cornerstone, Monday Minute, News, Social Security Spotlight /by Dennis Heywood

Please read and share with your clients!

2019 has new (lower) thresholds for higher-income beneficiaries. Lower is not a good thing. The basic Part B premium went from $134 per month to $135.50 per month. All other threshold Part B and Part D premiums also increased. Additionally, they created two new thresholds with higher premiums.

Click here to view the rates.

You cannot avoid the issue by filing “married filing separately”. They added a threshold for this filing status. So if you file “Married Separately” with a modified adjusted gross income (MAGI) between $85,000 and $415,000 you pay $433.40 per month. If your MAGI is above $415,000 you pay $460.50 per month.

Don’t forget : These increased premiums for 2019 can be appealed and lowered for a “life-changing event,” the most common of which is loss of earnings. If high earnings from 2017 are no longer available because someone retired from their job or is self-employed, Social Security will lower the 2019 premiums based on your estimate of the 2019 Adjusted Gross Income (AGI). Other life-changing events are death of a spouse, divorce, marriage, loss of income producing property, reduction/loss of pension, and/or employer settlement.

REMEMBER: Your adjusted gross income affects your Medicare Part B and Part D premiums two years later (2019 AGI Affects 2021 premiums).

Please see the guide to Medicare premiums for higher income beneficiaries at www.Medicare.gov for the all the premium changes in 2019, or you can email me for a copy of the new rates.

Dennis Heywood, Social Security Solutions LLC

sshelp01@icloud.com | 513-235-8036 | SS-help.com

About Social Security Solutions LLC

Social Security Solutions provides direction, assistance, and information to financial advisers, couples, and individuals concerning Social Security retirement strategies, as well as survivor, disability, and Medicare issues. Services include pre-retirement Social Security analysis for individuals and couples; assisting individuals filing online claims for retirement, disability, and Medicare; conducting Social Security strategy presentations for financial/ health care advisors, businesses, and their employees.

Important Information If You Were Born In 1953

November 29, 2018/in Cornerstone News, Monday Minute, Social Security Spotlight /by Dennis Heywood

If you were born in 1953, next year is your full retirement year. The 2019 earnings limit (wages and self-employment only) is $46,920. It’s time to do the math so you don’t miss out on the retirement benefits available to you starting in January 2019.

Here is how this strategy works: If you are earning about $80,000 a year from a job or from self-employment, you could possibly start taking a retirement benefit in January 2019. Social Security only counts your earnings for months prior to your full retirement month. This means if you were born in July 1953, they only count your earnings through June 2019. At $80,000 per year, you are only earning $40,000 through June and could take a slightly reduced benefit in January 2019 because your earnings are under the limit through June 2019. Social Security doesn’t care what you earn after June 2019 if you are under earnings limit.

BINGO!

Thousands of dollars in your pocket before June and you keep working earning your $80,000 for the year. Plus, if your spouse is eligible for spousal benefits, they can file on your record January 2019 as well.

This may not be the best choice for those who want to wait until 70 to maximize their retirement benefit, but if you were planning to file for your benefit in June 2019, this strategy is worth considering.

You can file for a January 2019 benefit at any time. Online applications are the most efficient way, but you must create your personal “My Social Security” account with Social Security at www.ssa.gov in order to file an online application. For more information about your “My Social Security” account, click here.

Contact me for a retirement benefit analysis!

About Dennis Heywood

Denny’s career with Social Security provides an in-depth, working knowledge of the Social Security Administration’s internal organization and processes. An expert in all phases of SSA programs: retirement, survivor, disability, and Medicare, Denny has expertise with the complex Social Security regulations based on more than 40 years of experience.

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Protecting You From Fraud: Recent Social Security Change

November 2, 2018/in Cornerstone News, Monday Minute, News, Social Security Spotlight /by Dennis Heywood

Social Security (SS) now requires you to open a “My Social Security” account to file an online application. Previously, you could file an application online with a special application number so you could start an application online, save it, and return later to complete it. Now you must get to the online application through your “My Social Security” account. The process is similar to credit card and bank procedures. You will log into your account with a user ID and password and then SS will send a special code to your cell or email. You need this code before completing the online application. The SS website also recognizes IP addresses, so you must start and finish the application from the same IP address. If logged on from a different IP address, you will be locked out and must restart the application.

This new process is beneficial to you! ID theft has led to more fraudulent Social Security retirement claims filed online in recent years.

So open your “My Social Security” account at www.ssa.gov and keep it up to date every six months.

Happy Thanksgiving to all!

About Dennis Heywood

Denny’s career with Social Security provides an in-depth, working knowledge of the Social Security Administration’s internal organization and processes. An expert in all phases of SSA programs: retirement, survivor, disability, and Medicare, Denny has expertise with the complex Social Security regulations based on more than 40 years of experience.

ss-help.com

Spousal Benefits and the 2016 Social Security Law “Deemed Filing” Changes

September 28, 2018/in Cornerstone News, Monday Minute, Social Security Spotlight /by Dennis Heywood

Due to the Social Security “Deemed Filing” change introduced on April 30, 2016, persons born after 1953 are limited as to when they can take a spousal benefit. One aspect of the new law eliminates the ability of a spouse to limit the scope of the application to spousal benefits at “full retirement age” if they were born after 1953. The strategy used to be to take one half of their spouses full retirement age benefit, but still accrue delayed retirement credits until age 70 (8 percent per year increase). It was a great strategy for some people; keep working but take one half of their spouse’s benefit, then switch to their own record at age 70 for a much higher benefit. Persons born before 1954 can still do this.

Another impact to this “deemed filing” rule change affects when a spouse must take a spousal benefit if eligible before they reach full retirement age. Example: A wife (born in 1954 or later) files for her retirement benefit at age 62 and receives $600/month. Her husband decides to file for his retirement benefit a year later when he is 66. She could file then and take a reduced spousal benefit of about $275/month, but is advised by her financial advisor to wait until she turn 66 (full retirement age) to get a higher spousal benefit of $400/month. WRONG.

The deemed filing change states she must file immediately for the reduced benefit of $275/month. If she was not entitled on her own record, she could wait and file at full retirement age for the highest benefit on her record and her spouse’s record. However, she elected a reduced benefit on her record and must take the reduced spousal benefit as soon as it is available.

Note: In this example, if she waits until her full retirement age to file for spousal benefit, they will only pay her the $275/month. She will lose all spousal benefits she could have received beginning the month her husband filed.

Recently, a financial planning firm contacted me who had advised a client’s wife (born in 1954) in 2015 to wait until her full retirement age to take spousal benefits. When her husband filed in 2018, Social Security informed her she must file for reduced spousal benefits right away and could not wait until her full retirement age because she had previously elected reduced benefits on her own record in 2015. The advice was correct at the time provided (2015), but the 2016 changes eliminated the option to wait and get a higher spousal benefit.

Questions? Feel free to give me a call!

About Dennis Heywood

Denny’s career with Social Security provides an in-depth, working knowledge of the Social Security Administration’s internal organization and processes. An expert in all phases of SSA programs: retirement, survivor, disability, and Medicare, Denny has expertise with the complex Social Security regulations based on more than 40 years of experience.

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Is 2019 Your Full Retirement Year?

August 24, 2018/in Cornerstone News, Monday Minute, News, Social Security Spotlight /by Dennis Heywood

If you were born in 1953, next year is your full retirement year. It’s time to do some math so you don’t lose retirement benefits you could have started taking in January 2019. The earnings limit (wages and self-employment only) for 2019 will be about $45,600 (estimated).

Here is how this strategy works: If you are earning about $80,000 a year from a job or self-employment, you could possibly start taking a retirement benefit in January 2019. Social Security only counts your earnings for months prior to your full retirement month, so if you were born in July 1953, they only count your earnings through June 2019. At $80,000 per year, you’re only earning $40,000 through June and could take a slightly reduced benefit starting January 2019 because your earnings are under the limit through June 2019. Social Security doesn’t care what you earn after June 2019 because you are under the $45,600 limit. BINGO! Thousands of dollars in your pocket before June and you keep working earning your $80,000 for the year. Plus, if your spouse is eligible for spousal benefits they can also file on your record January 2019.

This may not be the best choice for some who wants to wait until 70 to maximize their retirement benefit. However, if you were going to file in June 2019 for your benefit, this is something you may want to consider.

You can file for a January 2019 benefit any time after August 31, 2018.

For more information on this strategy check out my website and contact me for a Retirement Benefit analysis.

About Dennis Heywood

Denny’s career with Social Security provides an in-depth, working knowledge of the Social Security Administration’s internal organization and processes. An expert in all phases of SSA programs: retirement, survivor, disability, and Medicare, Denny has expertise with the complex Social Security regulations based on more than 40 years of experience.

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Social Security Tidbits That Are Nice To Know

August 2, 2018/in Cornerstone News, Monday Minute, News, Social Security Spotlight /by Jessica Larkin

1. VISITING AN OFFICE

IF visiting a Social Security office or calling 800 number

Avoid Mondays and days after national holidays. They are very busy and you will wait longer than usual to conduct business. Appointments are available to file claims of appeals, but not for routine business like getting a replacement SS card or explanation of notices received.

2. MEDICARE PART A

Many people think they must file for Part A of Medicare when they turn 65 to avoid a penalty. This is true UNLESS you are working for a company that has more than 20 employees and are covered under their Group Health Plan. In that case, you can stay on the Group Plan with no penalty. You will get a Special Enrollment Period for Medicare when you leave the company.

3. OVERPAID

If you are overpaid SS benefits and it is your fault, the local SS office has the authority to accept a compromise offer of 80 percent of the overpayment in most cases when the overpayment is $20,000 or less. Just visit an office, make the offer, and write them a check.

4. DISABILITY AND RETIREMENT BENEFITS

You can file for a reduced retirement benefit and disability at the same time. The retirement benefit will be paid immediately while SS reviews your medical records to see if you qualify for disability benefits. If the disability is approved your monthly benefit will be increased as soon as you complete the five-month waiting period.

About Dennis Heywood

Denny’s career with Social Security provides an in-depth, working knowledge of the Social Security Administration’s internal organization and processes. An expert in all phases of SSA programs: retirement, survivor, disability, and Medicare, Denny has expertise with the complex Social Security regulations based on more than 40 years experience.

ss-help.com