Insights on receiving SS lump-sum

Dondilion · #1 03-11-2014, 01:50 PM

There exist ways to receive lump-sum payment from Social Security.
The following article shows how and the pros and cons.

http://finance.yahoo.com/news/a-wind...155816922.html

MrPots · #2 03-11-2014, 01:58 PM

When you and your spouse retire, assuming both have worked their entire lives, do you both collect full social security or do married people get a reduced combined amount?

merrylander · #3 03-11-2014, 02:34 PM

Quote:

Originally Posted by MrPots

When you and your spouse retire, assuming both have worked their entire lives, do you both collect full social security or do married people get a reduced combined amount?

Florence's SS amount is based on what she earned during her time here as is mine. If I go before she does she gets a percentage of my amount but I believe loses her own in the process. If she goes before me I get nowt from her SS payment.

It was funny, last year I sold some stock with options I had from TI. So they reported it as W-2 income causing the SS folks to recalculate my payment.

MrPots · #4 03-11-2014, 02:35 PM

I can tell this is going to get complicated...

merrylander · #5 03-11-2014, 02:48 PM

Quote:

Originally Posted by MrPots

I can tell this is going to get complicated...

Oh indeed, suppose the wife was the higher earner she would hardly want just a percentage of her husbands lower payment. They can be quite arbitrary as well. When I continued working past 65 tey would not let me refuse to take payment. As a result I was taxed at the maximum rate with that added to my salary. Then at 70.5 I was also forced to take the minimum from my 401k so that got taxed at the max, and all the crap was during Shrub's reign.

MrPots · #6 03-11-2014, 02:52 PM

So SS is um...sexist?

I thought you could work as long as you wanted. I didn't realize you "had" to take SS when eligible....

merrylander · #7 03-11-2014, 03:02 PM

Quote:

Originally Posted by MrPots

So SS is um...sexist?

I thought you could work as long as you wanted. I didn't realize you "had" to take SS when eligible....

That is the theory, maybe I could have hired a lawyer - and paid him as much as I lost through taxes.

donquixote99 · #8 03-11-2014, 04:11 PM

How it really is:

'Primary' as used below, is whichever of a married couple has the higher SS entitlement. 'Spouse' is the person married to the 'primary.'

Spouse is entitled to spousal benefit of 50% of 'primary's' amount while both are collecting, so together they get 150%. If primary dies first, then spouse gets spousal benefit of 100% amount from then on.

But, if spouse worked and is entitled on his/her own account, he/she gets 100% of that entitlement, if it is greater than what he/she would get on primary's account. OTOH, if his/her entitlement is less, he/she just gets the spousal benefit, nothing extra.

donquixote99 · #9 03-11-2014, 04:23 PM

If you really want to get into the nuances, there are various strategies available in which one spouse takes benefits earlier than the other. See a CPA. You can get an idea what the possibilities are here: http://www.schwab.com/public/schwab/..._security.html

barbara · #10 03-11-2014, 04:27 PM

Quote:

Originally Posted by donquixote99

How it really is:

'Primary' as used below, is whichever of a married couple has the higher SS entitlement. 'Spouse' is the person married to the 'primary.'

Spouse is entitled to spousal benefit of 50% of 'primary's' amount while both are collecting, so together they get 150%. If primary dies first, then spouse gets spousal benefit of 100% amount from then on.

But, if spouse worked and is entitled on his/her own account, he/she gets 100% of that entitlement, if it is greater than what he/she would get on primary's account. OTOH, if his/her entitlement is less, he/she just gets the spousal benefit, nothing extra.

I've never heard of a couple getting 150%. Although, the rest of your post is accurate.