Social Security Spotlight: Important Information if You Were Born in 1956

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If you were born in 1956, 2022 will be your full retirement year, and your retirement month will be the month you turn 66 plus four months. Now is the time to do the math so you don’t lose the retirement benefits you could have started taking in January 2022, even if you don’t plan to stop working. The earnings limit for 2022 is $51,960 for persons born in 1956.

Let’s look at an example. If you were born in March of 1956 and are currently earning about $100,000 a year from a job or from self-employment, you could possibly start taking a retirement benefit in January 2022, keep on working, and not be offset for your earnings. Social Security only counts the earnings for months prior to your full retirement month. In this case, July is your full retirement month. At $100,000 a year, you’re only earning $50,000 through June 2022 (under the $51,960 limit) and could take a slightly reduced benefit starting January 2022. This means thousands of dollars in your pocket before July and you keep working earning $100,000 for the year. Plus, if your spouse is eligible for spousal benefits, they can file on your record January 2022.

However, this may not be the best choice for some who wants to wait until they turn 70 to maximize their retirement benefit, but if you were going to file in July 2022 (your full retirement month) this is a strategy you may want to consider. For more information on this strategy, contact me for a retirement benefit analysis.

You can file for a January 2022 benefit any time after August 31, 2021. The online application process is the best way to file and I am happy to assist clients with the process. Application submission is a service I offer as a convenience for clients not familiar with the online process or who just don’t want to mess with it. My fee is $225 per online application.

I wish you all a happy and prosperous 2022!

About Dennis Heywood

Denny’s career with Social Security has provided him 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 Spotlight: Spousal Benefits and the 2016 Social Security Law “Deemed Filing” Changes

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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. The 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.

Prior to this change, 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). They would continue working but take one-half of their spouses benefit and then switch to their own record at age 70 for a much higher benefit. This is still an option for persons born before 1954.

This rule change also affects when a spouse must take a spousal benefit if eligible before they reach full retirement age. For example: 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 turns 66 (full retirement age) to get a higher spousal benefit of $400/month. This is incorrect.

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. But she elected a reduced benefit on her record and must take the reduced spousal benefit as soon as it is available.

Note: In the above 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.

In 2015, a financial planning firm had advised a client’s wife (born in 1954) to wait until her full retirement age in 2018 to take spousal benefits. When her husband filed, 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.

This change may be confusing, so please feel free to contact me with any questions you may have.

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 Spotlight: Dealing with Pressing Social Security Issues

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After more than 40 years in the business, one thing I know for certain is that Social Security is complicated and the solutions for common problems aren’t always straightforward. If you run into issues with your Social Security account, here are the exact steps that you can take to resolve them.

Step 1

To contact your local Social Security office:

  1. Go to ssa.gov
  2. Scroll down to “Contact Us”
  3. Scroll down and select “Office Locater”
  4. Put in your zip code.
  5. The local office phone and address will be provided.

When you get in contact with the office, ask for the name of employee with whom you spoke, the date, the issue to be resolved, action taken to resolve the issue, and the expected resolution date.  Be sure to get the SSA employee’s supervisor’s name and phone number, just in case you need it later.

Step 2

If your issue is not resolved by the expected date, call the local office and ask for a status report. If you are unsatisfied, ask to speak with a supervisor. Document the issue the same as above with the supervisor.

Step 3

If the issue is still not resolved, contact a Public Affairs officer.

Social Security has Public Affairs specialists who will assist getting an issue resolved. You can find them at www.ssa.gov and typing “Media Contacts” in the search engine.

Public Affairs specialists are trained to assist you with unresolved issues. They are usually very helpful and find a resolution for most issues. Note: Only call the Public Affairs specialists for assistance after the local office has not resolved an issue.

Step 4

If step three does not resolve your issue, contact your U.S. Congressperson and/or Senator. They will send a Congressional Inquiry to the Social Security office handling the issue. Social Security management will then investigate the problem and respond to the Congressperson, hopefully resolving any issues.

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 Spotlight: 2021 Social Security Presentations

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I have been in the Social Security business for more than 40 years and, in my experience, most people are overwhelmed and uninformed about what benefit options are available, when to take them, and the mechanics of how to apply for them. People have contributed hundreds of thousands of dollars to the Social Security trust funds but have little idea of what is available, when it is available, and how it fits into their financial goals for retirement.

I have developed two presentations about the Social Security system, how it works, its nuances, restrictions, and timing. I offer informative Social Security 101 and 201 presentations, which are updated with the 2021 changes. Each session lasts about 50 minutes and is perfect for an employee lunch and learns or any other venue that works for clients or employees. I can present virtually if necessary.

The “Social Security 101” presentation explains the basics of Social Security entitlement like the earnings test, full retirement age, spousal/survivor benefits, Windfall Elimination, and Government Pension Offset. “Social Security 201” covers Medicare, disability, misinformation, “They Said” issues, practical information on how to file, overpayments, and your “My Social Security” online account. My fee is $250 for each presentation.

It’s great to put 2020 behind us and I’m looking forward to working with many of you in 2021. Thank you for your referrals and trust over the past 15 years!

 

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 Spotlight: Social Security Offices Closed to the Public

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Social Security offices have been closed to public visits since March 2020 and will probably continue to be closed into the New Year until the rates of infection subside.

Most employees are working from home and a limited number of employees go into offices to process mail and to other internal work. You cannot visit Social Security Administration offices for an in-person interview. However, a lot can be handled online, like change of address, direct deposit, claim status, and filing retirement/disability claims and appeals if you have set up a “My Social Security” account on their website. You can also schedule phone appointments to file claims through the national 800 number (800-772-1213). However, appointments may not be available for weeks or months, if at all.

Filing online is easiest for retirement and disability benefits. I offer this service for retirement and disability clients who want an expert to handle their case. When I assist you, the claim information is sent to one of several intake centers throughout the United States. Social Security will send you a hard copy application to sign and return and your retirement claim is usually processed in 30 days or less.

You can call local offices with other questions on important issues. Local office numbers can be found at www.ssa.gov on the “Contact Us” page (on the home page) and “Locate an Office”. Simply enter your ZIP code and the local office address and phone number will be provided.

Social Security available to handle most situations, albeit some slower than others due to necessary precautions. They have prioritized workloads. Hopefully things will change some time soon in 2021 and we can all get back to the new normal!

Wishing you all a safe and healthy holiday season and looking forward to 2021!

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 Spotlight: All About Social Security Disability Programs

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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 jobs 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. Disability decisions are made by an agency of the State where you live. In Ohio this Agency is the Disability Determinations Services office in Columbus. In Kentucky this Agency is in Frankfort. An adjudicator from this Agency is the person who reviews your medical records and decides if you meet the SSA definition and should be approved or denied. If denied you have appeal rights. This agency uses several factors to decide if you are disabled: age, education, and work experience. Some conditions are automatic approvals like ALS and some advanced cancers or other terminal conditions. Other conditions (muscular/skeletal), heart conditions, stroke, require more time and information.

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. There is no waiting period for SSI.

The maximum SSI benefit for 2020 is $783/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.

Both programs have complicated rules and limits if you return to work.

For more information please contact me. About 20 percent of my consulting business involves disability clients.

About Dennis Heywood | ss-help.com

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.

Social Security Spotlight: Important Information if You Were Born in 1955

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If you were born in 1955, next year is your full retirement year with your full retirement month at the month you turn 66 plus two months. It’s time to do some math so you don’t lose the retirement benefits you could have started taking in January 2021, even if you don’t plan to stop working. The earnings limit (wages and self-employment only) for 2020 is $48,600. The limit for 2021 has not been published yet, but it usually goes up by $1,000 or more.

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 2021 and continue working. Social Security only counts your earnings for months prior to your full retirement month. That means, if you were born in April of 1955, they only count your earnings through May of 2021 with June as your full retirement month. At $80,000 per year, you’re only earning $33,333 through May 2021 and could take a slightly reduced benefit starting January 2021 because your earnings are under the limit through May 2021. Social Security doesn’t care what you earn after May 2021 because you are under the $48,600 limit.

And 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 2021 as well.

This may not be the best choice for some who want to wait until 70 to maximize their retirement benefit, but if you were going to file in June 2021 (your full retirement month), this is something you may want to consider. For more information on this strategy contact me for a Retirement Benefit analysis.

You can file for a January 2021 benefit any time after August 31, 2020. The online application process is the best way to file. I assist clients in filing online applications, which is a convenience for clients who are not familiar with the online process or who just don’t want to mess with it! My fee is $200 per online application.

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 Spotlight: Create a “My Social Security” Account Today

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“My Social Security” is a free Social Security account that gives you access to important information like estimates of your future benefits and your latest statements, as well as the ability to change your address, direct deposit, review your earnings record to be sure your earnings are properly credited, and much more (see list below). Every adult should create a “My Social Security” account and take care to keep their ID and passwords up to date, changing them annually.

While providing retirement analyses, I have found years of missing earnings on clients’ earnings records. Clients should check their records every year in June or July to be sure the previous year’s earnings have been correctly posted to your record. It is much easier to submit W-2 and tax return information to correct any mistakes immediately rather than years later when you are filing for benefits.

“My Social Security” accounts apply to those who work in the public sector (city, county, state) as well. Why? You can check that your non-covered earnings are posted correctly for Medicare Part A coverage credit. Many public employees pay the Part A Medicare tax.

Listed below is some of the information you can access in your “My Social Security” account. Create your account by going to www.ssa.gov and scroll down to “My Social Security”.

  • View Your Latest Statement
  • Review Your Earnings History
  • Estimate Retirement Benefits
  • Check Application Status
  • Apply for Retirement Benefits
  • Apply for Disability Benefits
  • Apply for Medicare Benefits
  • Appeal a Decision
  • Change Your Address
  • Set Up or Change Direct Deposit
  • Print Proof of Benefits
  • Print Your 1099
  • Review FAQs
  • Request a Replacement Social Security Card
  • Request a Replacement Medicare Card

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 Spotlight: 2020 Social Security Information

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The Social Security Administration has released benefit amounts for 2020 (linked below). As you read through the changes, pay particular attention to the Retirement Earnings Test Exempt Amounts. Persons born in 1954 attain full retirement age in 2020 and their exempt amount has increased from $46,920 to $48,600 per year. Only W-2 and self-employment count as earnings. This amount only applies to months prior to their full retirement month.

Persons born early in 1954 have the advantage of taking their benefit in January 2020 at a slight reduction and suffering no loss due to the earnings test because Social Security only counts the earnings prior to your full retirement month. Thus, someone born in June 1954 reaching full retirement age in June 2020 is only earning $41,667 between January and May 2020 if they are earning $100,000 from work for the entire year. Benefits are due starting January 2020 if they want them.

It is advisable to do the math for 2020 in the fall of 2019 so you don’t leave thousands of dollars on the table.

I will have quarterly updates in 2020. Happy New Year to everyone!

Click here to see the 2020 Social Security Fact Sheet for information on upcoming changes.

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