Today’s column examines the Social Security ramifications of having a spouse jailed, which month to start benefits, what to do at 70 after filing and suspending, switching from survivor's to retirement benefits retroactively and options if you think you benefit has been calculated inaccurately. Larry Kotlikoff is the founder and president of Economic Security Planning, a company that markets Maximize My Social Security, a Social Security benefits calculator referred to in this post.
See more Ask Larry answers here.
Ask Larry about Social Security:
What If My Spouse Is Jailed?
Hi Larry, I'm 76 and I have been collecting Supplemental Security Insurance (SSI) since 65. My husband (soon to be divorced) has been incarcerated since late 2015. He no longer receives his Social Security benefits and I believe I will never receive a widow's benefit after his death. He is 78 and received a 13 year sentence. Would Social Security Disability increase my benefit, which is about $1,000 per mo after Medicare is deducted? I am being penalized because of his dastardly deeds. Of course his benefit was quite a bit higher than mine. Any suggestions would be greatly appreciated. Thanks, Jaime
Hi Jaime, You can't collect disability benefits after you reach full retirement age. You can collect your own retirement benefit. If you have 40 quarters of covered earnings, you can file for your own retirement benefit. You can also file for a spousal benefit on your husband's work record even though he is imprisoned. And if he passes away, you can file for a widow's benefit. While he's alive, you'll get the larger of your SSI benefit, your own retirement benefit, and your spousal benefit. When he dies, you'll get the larger of your widow's benefit, your Supplemental Security Income, or your retirement benefit. Best, Larry
Which Month Should I Choose To Start Benefits?
Hi Larry, I turn 66 in March. When I was filling out the online application, I was asked if to start benefit on 3/1/2018. Do I make the application effective March or April? Thanks, Brandon
Hi Brandon, If you want benefits to begin effective with your full retirement age you should choose March, unless you happen to have been born on March 1st, in which case you would choose February. You may want to run an expert Social Security benefits calculator, such as my company's Maximize My Social Security or another very careful program because you may have better filing options available to you. Best, Larry
What Do My Wife And I Need To Do When We Turn 70?
Hi Larry, My wife and I are almost the same age ––– now 69. In February of 2019 we both turn 70. In 2015, my wife filed and suspended and I filed, restricting my application to only my spousal benefit. Thank you for your software which alerted us to this strategy. So when I file for my retirement benefits in my own name and my wife reinstates her retirement benefits, can we do this online or must we go in person to the Social Security Office? Are there any gotchas or pitfalls we should look out for? Thanks, Pete
Hi Pete, Your wife's benefits should automatically restart when she reaches age 70, so she shouldn't need to do anything. You will need to file an application for your retirement benefits shortly before you turn 70. A month or 2 before should be fine. Social Security currently doesn't allow online application from people who are currently receiving benefits, so you'll likely have to file by phone or in person. There are no particular pitfalls involved. Just be sure to specify that you want to start your retirement benefits effective the month you reach age 70, and not before. Best, Larry
Can I Retroactively Switch From Widow's To Retirement Benefits?
Hi Larry, Do I have the 6 month retroactive payment option when switching from a widow's benefit to my own benefit at age 70. Thanks, Jane
Hi Jane, If you are nearing age 70 and you apply for retirement benefits on your own record, you have the option to claim benefits up to 6 retroactively. However, you can't receive both your full widow's benefits and your retirement benefits for the same month. So, assuming that your retirement rate is higher than the widow's rate you currently receive, if you claim 6 months of retroactivity, Social Security would only pay you the difference in the 2 rates for the retroactive period. In other words, you would only be due your higher retirement rate for those months, and no widow's benefits. You would also lose out on the delayed retirement credits that you would have earned for those months, so it sounds unlikely that this is something that you would want to do. An expert Social Security benefits calculator as described in other answers can help you choose the best option. Best, Larry
Can I Re-Apply If I Think My Benefit Was Miscalculated?
Hi Larry, If I am already collecting my Social Security retirement benefit and I think it was calculated wrong, can I reapply to maximize my benefit? Thanks, Jesse
Hi Jesse, You can't re-apply for the same type of benefit, but you could ask for a recomputation of your benefit rate. You'll need to submit a written request to Social Security explaining why you believe that a higher rate is due. Or, if you're still within the 60 day appeal period since your claim was processed, you can request an appeal. Best, Larry
To learn more about your Social Security options, visit Economic Security Planning, Inc.
