Ask Larry: Did I Need To Withdraw My Social Security Application Within 12 Months Of Turning 66?

Taxes

Today’s Social Security column addresses questions about how long you have to withdraw an application for benefits, applying online to switch from survivor’s benefits to retirement benefits and the earliest different benefits can begin. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc.

See more Ask Larry answers here.

Have Social Security questions of your own you’d like answered? Ask Larry about Social Security here.


Did I Need To File My Withdrawal Request Within 12 Months Of When I Turned 66?

Hi Larry, I started taking benefits May 2018 at 68. In April 2019, I applied applied to withdraw my application. My withdraw was rejected as they said it should be within 12 months of entitlement. Is this correct? If not, how do I rectify this? Thanks, Howard

HI Howard, “Entitled” to benefits means that you are eligible for and have applied for your benefits. You would have been eligible for benefits as early as age 62, but your first month of entitlement (MOE) would be the first month you claimed and were approved for benefits.

You have up to 12 months from your MOE during which you can submit a written and signed request to withdraw your application for retirement benefits. So if applied for benefits in 2018 and if your MOE was April 2018, i.e. the benefit payment due in May 2018, then you could have submited a withdrawal request as late as April 30 2019.

However, if you applied for benefits in April 2016, then your MOE would be April 2016 even if you only filed for and suspended your benefits and you weren’t actually paid any benefits until 2018. In that case you would have to have filed your withdrawal request no later than April 2017.

I don’t have all of the facts of your case, but if you submitted a proper withdrawal request to Social Security within 12 months of the first month of entitlement to benefits, then your withdrawal request was timely filed. There are several steps in Social Security’s appeals process, so if you believe that the decision in your case was incorrect you could request to appeal further. Best, Larry


Do You Think My Online Application Will Go Through?

Hi Larry, I am currently receiving survivor’s benefits and want to start my retirement benefit May 2022. I called the Social Security office in my area and was told I could file online, even though I am currently receiving a survivor’s benefit.

I was skeptical, but went online and was surprised that the website did indeed allow me to file my application. Do you think it will go through? Do you know of anyone else in these circumstances who has done this? Did their online application through? Thanks, Charles

Hi Charles, I can’t say for sure, but if you applied online and if it was accepted by Social Security, then it should be processed to completion. There’s nothing on Social Security’s website that indicates people receiving only spousal or survivor’s benefits can’t file for their retirement benefits online.

If you’re unsure about whether or not your claim went through successfully, then you should call Social Security to check on the status of your claim. When you file to switch from drawing survivor’s or spousal benefits to retirement benefits, normally your claim can’t be processed to completion until about a month before the first retirement benefit payment is due.

That’s because Social Security must first terminate the spousal or survivor’s benefit before authorizing payment of the retirement benefit. So if you requested to switch to retirement benefits in May 2022, i.e. with the first payment due in June 2022, then about the earliest you could expect an actual award letter would be sometime in May 2022. Best, Larry


Can I File For A Widow’ Benefit?

Hi Larry, My husband died at the age of 61. I am 54 years old. He worked full time and I work part-time. We have saving and retirement accounts but I don’t want to dip into them yet if I can help it. Can I file for Social Security widow’s benefit? I don’t have any disabilities. Our two daughters are over 21 and attend college. One works part-time and the other is a full-time student. Thanks, Rebecca

Hi Rebecca, I’m sorry for your loss. I wish I had better news for you, but if you aren’t disabled and if you don’t have a child in your care who qualifies for child benefits and who’s either under age 16 or disabled, then the earliest that you could qualify for widow’s benefits is at 60.

Unfortunately, it doesn’t sound like your daughters could qualify for any survivor benefits either. Surviving child benefits can only be paid to children who are either under age 18, 18 to 19 and attending high school, or older children who became disabled prior to 22.

There is a one-time death benefit of $255 that can be paid to surviving spouses, so if you haven’t already applied for that benefit then you’ll likely need to call Social Security. I know that’s not much consolation, though.

As far as monthly benefit options go, normally the best option for someone who’s potentially eligible for both their own benefits and for widow’s benefits is to start out drawing the lower benefit first and then switch to the higher benefit when it reaches it’s highest potential rate.

So, based on your description it sounds like your best long-term strategy could be to file for reduced retirement benefits on your own account at 62 and then file for unreduced widow’s benefits at your full retirement age (FRA) of 67.

Of course, each case is unique and if your circumstances change between now and when you reach retirement age that could also change your optimal filing strategy. You may want to consider using my company’s software — Maximize My Social Security or MaxiFi Planner — to ensure your household receives the highest lifetime benefits. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry


Articles You May Like

Thanksgiving meals are expected to be cheaper in 2024 as turkey prices drop
Disney debuts its latest cruise ship, Treasure, as part of a plan to double its fleet by 2031
Lowe’s beats on earnings and hikes guidance, but still expects sales to fall this year
Most employees don’t leverage this ‘triple-tax-free’ account, advisor says. Here’s how to use it
Here’s how to leverage the 0% capital gains bracket as the price of bitcoin surges

Leave a Reply

Your email address will not be published. Required fields are marked *