They base the computation on the 35 highest SS taxed earning years a person has. Years with zero or less than the maximum taxed amount will bring down that "max".
OT: When to take Social Security
- Thread starter RULoyal
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Looking more and more like I’ll never see any real money from SS. Maybe someday I’ll get back from the government what I put in.
They used to follow that … not sure still true in2024 ? I know my late father paid out hundreds of thousands in 5 years. He had great insurance and money… though having honorably served 5 years during WWW2 ( age 17-22) he was unable to be compensated by the VA… the same BS … need to go back 7 years… can only have access to so much… better to have nothing vs thinking you are good.
Yes they still do it. Went through this with my parents last year. Never got to that point but was assured if they ran out of money they could stay
My aunt is approaching 95. Her teachers pension and SS all go directly to her facility in Flemington. She went from her own room to having a roommate. But they haven't kicked her out although what she pays is less than they charge. Basically left with zero disposable income. Will die with negative assets.
My father at 90 had enough for another 5-6 years until he would be living on SS … in all honesty the director of the facility told us my dad would not be tossed aside by them . He had a great private room , small kitchen and living area . Best was his view from picture window. Plenty of deer everyday.
You’re talking that she is now on Medicaid with no assets. We asked about the cost of the nursing home that my father was rehabbing and they told us it cost about $12,000 month. If you have assets, they are going to take it. We rather have the millions in inheritance and take care of my father. I thought you could protect your home from the nursing home but a friend had to sign over the home and when he passed they sold it and paid over the debt and the rest of it split among the beneficiaries.
As much as children may love their parents and have sworn to never place them in an adult care facility (as they age ) that works only in the early stages. Along the way more severe illnesses will test your resolve. Bathing. changing dirty clothes , administering meds, more involved issues such as intubation, dialysis , feeding tubes. You think saving money is the most important thing but the comfort of mom , dad etc. is actually more needed at EOL.
Saving for college: The new 529-to-Roth IRA transfer rule
A provision in the SECURE 2.0 Act enables greater flexibility in saving for children’s education while also helping 529 plan beneficiaries to get a jump-start on retirement savings.
www.journalofaccountancy.com
Good summary
Yea. None of those limitations are concerns for me. I can fund all three kids to the 35k over next 5 yearsSaving for college: The new 529-to-Roth IRA transfer rule
A provision in the SECURE 2.0 Act enables greater flexibility in saving for children’s education while also helping 529 plan beneficiaries to get a jump-start on retirement savings.
Good summary
You need to move money into a trust 5 years before to protect it from being taken by Medicaid.
Thanks to everyone who contributed to this thread. Lots of good info. So I talked with my financial advisor and accountant again and I'm going to start taking SS benefits in the spring. I will be 1 year shy of full benefit age. SS has already approved my application.
It looks like in order to have taxes withheld from your benefit you need to fill out a request form and mail/fax it to Social Security. I did not see any way to select withholding during the online benefit application process. Does anyone know if you need to wait until you are actually receiving benefits to send the form in or if I can send the form in now even though my benefits won't start for a few months? I tried calling the SS office and it was a 1.5 hour wait.
It looks like in order to have taxes withheld from your benefit you need to fill out a request form and mail/fax it to Social Security. I did not see any way to select withholding during the online benefit application process. Does anyone know if you need to wait until you are actually receiving benefits to send the form in or if I can send the form in now even though my benefits won't start for a few months? I tried calling the SS office and it was a 1.5 hour wait.
Very good thread. I don't need to make any decisions for quite a while, but seems to be no reason not to start collecting at 62 and just invest the money. You will make more in the market than waiting for a higher monthly benefit.
I don’t have them withdrew taxes instead file a quarterly estimated tax payment for any additional income.
That's our plan. Whatever money we get from SS is money we don't have to take out of investments. The investments should offset or gain over any lower payment penalty from SS. If not, O well, the difference will be minimal.
As i understand it, In NJ look-back is a rolling 5 years......for example anything gifted today (up to 18k in 2024 per recipient) is exempt from look-back a year from now. I believe some states have different rules as the Feds set the base guideline but the individual state can alter that.
I owe taxes at the end of the year. I have withholding from certain sources instead of making estimates
I had the taxes taken out when I went to the SSA office to sign up for Part "B" of Medicare.
They used to have a prompt system telling callers if you do not wish to wait on the phone leave your name and phone number . They would give the caller an estimate of time. Mine 9 years ago was a call back in 2 hours. Great rep who handled my entire SS application and did the same 1 month later for my wife. Took mine 8 months early… well worth it. Enjoy it ….our lives are not guaranteed .
Was it an assisted living facility (ALF) or a nursing home? Much harder to involuntarily discharge someone from a nursing home, although it happens (but is not allowed based on ability to pay or being a Medicaid supported payor - nursing homes have to take Medicaid). Being discharged from an ALF (usually to a nursing home) happens all the time, when people move towards needing 24/7 care, which ALFs usually don't provide.
Hope the following is helpful for some, as we've had a range of experiences taking care of the elderly, as my wife ended up being the primary caregiver (power of attorney) for her grandmother and both parents; I only did a little bit of the support detailed below, but have learned a bit through observation. Her grandmom had Alzheimer's (but was otherwise healthy) and was moved into an ALF when she was about 80. She stayed there for about 10 years and her savings was drained over the first few years, but they kept her there accepting her Medicaid (didn't cover all of it) until the end when they booted her when she became very difficult - fortunately, she died within a few weeks of that.
My wife's father moved into a continuing care facility, starting at the independent level, where he stayed for 7-8 years, but then he suffered from worsening dementia and was moved to the assisted living wing of the facility and was there for about a year. During that last year he had nearly continuous nursing coverage at $15K/month (he had the money) as he had become difficult and they told my wife they wanted to discharge him to a nursing home, but she fought it and they relented and then a few months later, he fell ill and died in the hospital.
And my wife's mother lived in a mental disability residential facility from the time she was about 60 until she died in her mid-80s, all paid by Medicaid (and a NJ program for such folks); she died from emphysema, fairly quickly, at the end. And "luckily" (I guess) my mom declined and died relatively quickly (cancer) over about 2 months in early 2020 when she was living with my sister, so there never was any facility involved.
Lastly, my dad is 90 and living in a CCF at the independent level (he's very sharp, still, but physically declining with diabetes and very poor eyesight) and they have an ALF there in case it gets to that point. He has a LTC policy and enough income from his pension/SS to pay for a standard nursing home should it come to that and he has a room reserved at one just in case. If anyone is doing eldercare, don't forget that step, i.e., make sure the person you're responsible for (or will be in the future) has a spot reserved in an ALF and a nursing home should that person need it - sometimes waiting lists go out for a year or more and you don't want to be scrambling at that point.
There probably ought to be an eldercare thread on the board. A few useful links below...
https://www.forbes.com/health/senior-living/assisted-living-vs-nursing-homes/
https://www.agingcare.com/articles/can-assisted-living-kick-out-elderly-residents-138932.htm
https://www.medicaidplanningassistance.org/nursing-home-evictions/
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Yes assisted living. Was costing like 20k a month for just my mom
Best is to have no assets… the more you have the more they take… even Uncle Sam … remember him ? gave us a run around because of my late father’s assets. This after serving 5 years in the Pacific Theater during WWII . Cost us around 350k out of ( his ) pocket . They did tell us , “ don’t worry we’ll accept whatever Medicare pays if his money runs out.” He lived until 90 and still had some sizable funds and investments left which went to the family. No debts… make sure of everything as we have just seen recently again in the news.
If you start at 62 and are still working there is the possible clawback of a portion of the payments until you reach normal retirement (66-67 not 70).
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