Q: I have been told that if you work and pay into Social Security for 30 years or more and are also in the old Civil Service Retirement System that you will receive your full Social Security and will not have it reduced by the "windfall" deductions. Is that true?
A:
This is true. 30 Years Of Coverage (yoc) could make you exempt from the windfall offset provision. However, there is a specific amount you must earn per year in order to have it count as a year of coverage.
You many want to look at this
http://www.ssa.gov/retire2/wep-chart.htm
And let me know if you have any additional question.
Q: I am 62 years old and will start collecting my full Social Security benefit at age 66. My wife will be 62 next year and is contemplating collecting her reduced benefit. If she starts her reduced benefit at age 62 will she then be able to convert to one-half of my plan benefit when she reaches age 66 or is she still limited to collect only her reduced benefit?
A: "The wife is deemed to have filed for spouse's benefits when her husband files for his retirement benefits," said a Social Security Administration representative. "She cannot delay spouse's benefits until she reaches full retirement age. If her spousal benefit is higher than her retirement benefit, she will get a combination of benefits equaling the higher spousal benefit. (Social Security will always pay the spouse's own retirement benefit first).
"Additionally, anytime benefits are received before full retirement age, they are permanently reduced." Read SSA's chart on "How Social Security Benefits are Reduced" at this Web site.
Q: I expect to wait to collect Social Security until I am 66. I'll be 64 later this year. However I have a very high stress job and would like to make a change to something less stressful. I expect a job change would result in a salary decrease. My yearly statement from Social Security states the estimate of my benefit is assuming I continue making my current salary. I've been working for more than 40 years so I have the time in. What is the penalty for making less money in the final years up to your 66th birthday?
A: "Social Security benefits are based on earnings averaged over most of a worker's lifetime," an SSA representative said. "The actual earnings are first adjusted to account for changes in average wages since the year the earnings were received. Then, Social Security will calculate the average monthly indexed earnings during the worker's highest 35 years of earnings. We will apply a formula to these earnings and arrive at an individual's benefit amount. If a worker earns less in the last two years of their career, they would have two less years of higher earnings that could be included in the benefit formula. This may result in a slightly lower benefit amount."
Q: I remember learning somewhere that I could start my Social Security benefits at, say, age 62, and then at a later age [such as when I was eligible for full benefits] pay back what I received to date and switch to full benefits. Was I dreaming?
A: "Yes, he can withdraw his application for Social Security benefits that have already been paid," the SSA said. "He must file a written request for withdrawal and repay any benefits received. He can apply for benefits at his full retirement age, and receive full benefits."
Q: Can my spouse who has reached full retirement age collect benefits based on my record and then collect benefits on her record at age 70?
A: "Yes, an eligible spouse at full retirement age can collect benefits based on their spouse's record, then collect benefits based on their own record at age 70, to take advantage of delayed retirement credits," the SSA said. Learn more about delayed retirement credits at this Web site.
Q: When I retire I will receive payments from a 401(k) and a traditional IRA of approximately $60,000 per year. I do not intend to have a job. My annual Social Security benefit will be around $25,000. Will my Social Security benefit be subject to income tax even though I will not be working?
A: "A person will have to pay federal taxes on Social Security benefits if he/she files a federal tax return as an 'individual' and the total income is more than $25,000," said an SSA representative. "If a person files a joint return, he/she will have to pay taxes if the married couple has a total income that is more than $32,000. For more information, read IRS Publication 915 at this Web site.
Q: My father is 61 and my mother is 55, and have been married for 35 years. When my mother is old enough to take Social Security, it will be more advantageous for her to do so on the basis of her own work record (she has worked through all her adult life and so her own record is worth more than half of my father's).
I have seen a number of references to strategies whereby a spouse with a less substantial record will take early benefits on the basis of his/her own record, which is lower, and then switch to the spouse's record when the spouse begins collecting on his/her own benefits at his/her respective full retirement age.
My question is, can my mother do the opposite? That is, can she take half my father's benefit when she's 62 (and he's 68), then switch to her own record when she reaches full retirement age?
A: "For a spouse to qualify for retirement benefits based on the primary worker's record, the spouse cannot be entitled to a retirement or disability insurance benefit based on a primary insurance amount which equals or exceeds one-half the worker's primary insurance amount," the SSA said. Learn more at this Web site.
Q: If a woman (widow) remarries, would she lose her Social Security benefits if she receives Social Security based on her own work record? If she were collecting Social Security based on her former husband's work record, would she lose that pension? If she lost it by remarrying, would she get it back again if her present husband dies or gets divorced?
A: According to an SSA representative, "the remarriage of a widow(er) does not affect benefits received on his/her own work record. The remarriage will only affect a widow(er), if he/she is receiving benefits as a surviving spouse, surviving divorced spouse or disabled widow.
"Generally, you cannot get widow's or widower's benefits if you remarry before age 60. But remarriage after age 60 (or age 50 if you are disabled) will not prevent you from getting benefit payments based on your former spouse's work. And at age 62 or older, you may get benefits based on your new spouse's work, if those benefits would be higher.
And "generally, benefits cannot continue to be paid if the divorced spouse remarries someone other than the former spouse, unless the latter marriage ends (whether by death, divorce, or annulment), or the marriage is to a person entitled to certain types of Social Security auxiliary or survivor's benefits." For more information, visit this Web site.
Many other answers to Social Security questions can be found at the main Social Security site, www.socialsecurity.gov. Visit the site. 
Question: If you are on Social Security what is the limit on the amount you can make if you go to work?
A:
The amount allowed by Social Security this year is $13,560 or if your using the monthly test $1,130 a month. If it is your full retirement year you are allowed to earn $36,120 from January to the month before your full retirement age month. If you are on Disability the rules are completely different.
Please let me know if you would like clarification or additional information.
Question: Return to work or not?
Hi, i have a question. My mother is 62 and has been collecting widowers benefits. In July of 2007 she went out of work on medical disability for treatment of breast cancer. We are deciding if she should return to work or not. How would her widowers benefits be affected if she does not return to work at this young age?
A:
Hi, Thanks for taking the time to read my blog. If you have any questions about Social Security, please ask. This is a new blog for me and I will use the questions you send in for future blogs. I will never post any ones name, or other identifiable information in my post.
You should collect now if you are 62 and earning $13,560 or less per year. If you are planning on continuing to work, Social Security will hold $1.00 for ever $2.00 you earn over $13,560 from your benefits.
Question: You should collect now if you are 62 and earning $13,560 or less per year. If you are planning on continuing to work, Social Security will hold $1.00 for ever $2.00 you earn over $13,560 from your benefits.
A:
Widows/Widowers benefits start at age 60
For instance, you could earn $18,560.00 in 2008 and only have $2,500 of your social security benefits withheld. This would be 2 1/2 checks if your benefit rate was 1,000.00. You would be getting 9 1/2 checks!!! Dont wait if you think you might be eligible because Social Security CAN NOT give retro benefits for retirement except in rare cases.
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