SS and retirement question

[square1]

Taking money from a 401 is Tax able and by age 70 forced to remove % of funds or take a whopping penalty.

This is something i just learned in the past year and something i think many are surprised by with regard to traditional 401ks. My traditional 401k is pretty well stocked so I've switched most contributions to a Roth since it lacks the mandatory withdrawal / taxation penalty mechanism. I'll use up the bulk of the traditional first after retirement leaving a balance at age 70 the will not cause taxation problems. Then start on the Roth, or not as needed.

 

[MacLawn]

One more thing I just learned about SS - it seems if ye plan on taking at full age, aka, 66 for me, you can actually start at 65 and 10 months. I thought it was 65 and 9 months, but read somewhere it's 65 and 10 months. Even though i won't retire at that age, I do plan to start me SS at 65/10 months! Like the monkey said when he got his tail caught in the fan - "It won't be long now, boys!".

 

[Ken45101]

One more thing I just learned about SS - it seems if ye plan on taking at full age, aka, 66 for me, you can actually start at 65 and 10 months. I thought it was 65 and 9 months, but read somewhere it's 65 and 10 months. Even though i won't retire at that age, I do plan to start me SS at 65/10 months! Like the monkey said when he got his tail caught in the fan - "It won't be long now, boys!".

You "start" SS one month, but they don't actually "pay" until the following month. (IOW, the payments are a month behind.) That might account for the numbers you quoted.

 

[smstonypoint]

You "start" SS one month, but they don't actually "pay" until the following month. (IOW, the payments are a month behind.) That might account for the numbers you quoted.

I think you are correct.

This is the way it worked for me. I started SS at 62 and my birthday is May 14. I applied for SS three months ahead of time. You are not paid for the month you are born, so I was due my first SS payment in June. That payment was made on the third Wednesday of July. (SS payments are now on staggered Wednesdays according to the day of the month of your birthday.)

Steve

 

[JDgreen227]

I think you are correct.

This is the way it worked for me. I started SS at 62 and my birthday is May 14. I applied for SS three months ahead of time. You are not paid for the month you are born, so I was due my first SS payment in June. That payment was made on the third Wednesday of July. (SS payments are now on staggered Wednesdays according to the day of the month of your birthday.)

Steve

That is the same situation that I endured...I applied 3 months in advance, my 62nd birthday was August 22, but my first SS check wasn't deposited until October 23rd.

 

[smstonypoint]

That is the same situation that I endured...I applied 3 months in advance, my 62nd birthday was August 22, but my first SS check wasn't deposited until October 23rd.

It hasn't happened to me yet, but I understand that you do not draw SS for the month you die.

Steve

 

[MacLawn]

That is the same situation that I endured...I applied 3 months in advance, my 62nd birthday was August 22, but my first SS check wasn't deposited until October 23rd.

So does this mean in your application you choose the date you want to begin SS? In other words, can I go online now to SS site and go ahead and apply for mine to start a certain month? Even though it will be a month later, I understand that, the site says you're paid the following month after ye birthday. Since I don't have to be concerned with waiting for 62, seems I could start anytime.

 

[smstonypoint]

So does this mean in your application you choose the date you want to begin SS? In other words, can I go online now to SS site and go ahead and apply for mine to start a certain month? Even though it will be a month later, I understand that, the site says you're paid the following month after ye birthday. Since I don't have to be concerned with waiting for 62, seems I could start anytime.

From How to Apply Online For Social Security Retirement Benefits

You can apply online for retirement benefits or benefits as a spouse if you:

are at least 61 years and 9 months old;
are not currently receiving benefits on your own Social Security record;
have not already applied for retirement benefits; and
want your benefits to start no more than 4 months in the future. (We cannot process your application if you apply for benefits more than 4 months in advance.)

Steve

 

[JDgreen227]

So does this mean in your application you choose the date you want to begin SS? In other words, can I go online now to SS site and go ahead and apply for mine to start a certain month? Even though it will be a month later, I understand that, the site says you're paid the following month after ye birthday. Since I don't have to be concerned with waiting for 62, seems I could start anytime.

I will try to answer your queries as best I can...I was told by SS I could apply 3 months prior to my 62nd birthday which was on 8/22/13, and I applied online 5/22/13. I could not apply sooner than 3 months prior or the site would reject my application. In your case you are well past the minimum age you could have begun to collect SS so that means you can apply anytime. I really should have made it clear I applied to collect as early as I could and I'm sorry for the omission. But I really don't know for sure what the period will be before you will get your first check, because of your filing status. One caveat: Unless Social Security will be your ONLY source of retirement income, you can expect 85% of it to be subject to Federal Income tax. I had 10% of my SS withheld for tax purposes because I also collect a pension, and that 10% worked out almost perfectly for my situation on Form 1040.

Delayed posting this until dinner was over and it looks like smstonypoint knows a LOT more than I do...:laughing:

 

[Jstpssng]

It hasn't happened to me yet, but I understand that you do not draw SS for the month you die.

Steve

Hopefully it will be a LONG TIME before you can answer that question!