Today’s Social Security column addresses questions about when applications for benefits can be submitted, who might and might not be able to receive spousal benefits and whether investment withdrawals affect Social Security disability benefits. 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.
When Is The Best Time To Submit My Social Security Application?
Hi Larry, I will be 66 and nine months later this year when I plan to retire. I’ve heard different accounts of when it’s best to submit the actual application. When would you say the best time is? Thanks, Bryan
Hi Bryan, You can submit your application for benefits up to four months prior to the month that you want your benefits to start. So if you want to claim benefits in, say, 6/2023, you can apply anytime between 2/1/2023 and 6/31/2023.
However, your optimal filing strategy depends on numerous different factors, so before deciding when to claim your benefits 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
Am I Entitled To A Spousal Benefit On My Husband’s Record?
Hi Larry, I am 63 and I make over $100,000 a year. My husband is 67 and retired. He worked mainly jobs that didn’t pay into Social Security so his Social Security retirement benefit is about $23,000 a year. Will I be able to get a spousal benefit based on his work record? Thanks, Cindy
Hi Cindy, Only people who were born prior to 1/2/1954 are allowed to apply for spousal benefits without also filing for their own retirement benefits at the same time, and even they can only file just for spousal benefits if they apply at full retirement age (FRA) or later.
But whenever you decide to apply for benefits, you’ll be deemed to be applying for both you retirement benefits and your spousal benefits, and you could only be paid the higher of the two benefit rates.
You don’t mention if your husband is receiving a pension based on the income that wasn’t taxed by SSA. If so, that would reduce or possibly eliminate any spousal benefit you could receive on his record in addition to reducing his own retirement benefit. Best, Larry
Would Withdrawing My 401K Money Affect My Disability Decision?
Hi Larry, I’m concerned about the current market situation. I have applied for Social Security Disability which is in progress for approval or denial. I want to pull my 401K money out because I am losing money and put it in a regular account after taxes. Will this affect the SSDI decision? Thanks, Joseph
Hi Jospeh, The only type of income that could affect your Social Security disability (SSDI) eligibility is earned income (i.e. wages or self-employment). Funds withdrawn from a 401k are not considered as earned income. Best, Larry