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Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Social Security
Satisfied Customers: 16576
Experience:  Licensed CPA, CMA, CFE, CGMA M.Accy Also Teach Accounting courses at Master's Level
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i am 60. divorced. i am eligible for maximum ss benefits as

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i am 60. divorced. i am eligible for maximum ss benefits as i've been over the limit most of my life. new spouse to be is 61. her income is substantially less, works for me. 1. is marriage financially sensible? 2. when should she take ss if we are married ? 3.we expect to work at least to 70. 4. how do we maximise the benefits?

MyVirtualCPA :

I realize you have a question about social security. My goal is to help you better understand your options.

MyVirtualCPA :

How are you today?

MyVirtualCPA :

Yes, marriage is financially sensible considering your social security benefits

MyVirtualCPA :

If you are married, she should take her benefit at age 66 which is her full retirement age - that way she gets a full 50% of your benefit

MyVirtualCPA :

Of course you are one year younger than she is, so she could draw her own benefit for one year once she reaches full retirement age and then switch once you file at your full retirement age

MyVirtualCPA :

You could then, at your full retirement age, file for your benefit and then suspend

Customer:

do i then get my full 30% more at age 70 if i file at 66? what happens to her benefit? should i up her salary to increase her benefit or is it a waste?

MyVirtualCPA :

If you file at 66 and suspend your benefit, then when you turn 70 you will get your maximized benefit. Her benefit is 50% of your age 66 benefit

MyVirtualCPA :

If you pay her more now, her benefit could increase but it will be minimal

Customer:

we won't need the money, so she can wait to file until 70. the would i have to file and suspend at 69?

MyVirtualCPA :

Yes, you would file and suspend at 69 to get your full benefit at age 70

MyVirtualCPA :

In the meantime, she can draw her own benefit starting at full retirement age, and then at age 69 when she switches she will get the higher benefit

MyVirtualCPA :

And, at full retirement age you could draw 1/2 of her benefit while your benefit grows

Customer:

can she file at 62 and then get the higher rate when i file?

MyVirtualCPA :

No, she has to wait until full retirement age

Customer:

and we would pay taxes on all this

MyVirtualCPA :

On 85% of it

Customer:

you're good . i expect we

MyVirtualCPA :

Until you are done working, at that point if social security is your only income you won't owe tax on it

Customer:

'll have around 2 million in retirement 401k at 70 1/2. will that cause tax liability on ss income?

MyVirtualCPA :

Yes, if you are drawing from your 401(k) then a portion of the benefit could be taxable

MyVirtualCPA :

http://www.calcxml.com/calculators/how-much-of-my-social-security-benefit-may-be-taxed

MyVirtualCPA :

There's a link to a calculator that will tell you how much of your benefit is taxable

Customer:

so summarise. what would you do in this situation?

MyVirtualCPA :

At full retirement age, I would have your wife draw her own benefit

MyVirtualCPA :

At your full retirement age you would draw 1/2 of her benefit

MyVirtualCPA :

then when you are 69 file and suspend your wife will get a higher spousal benefit

MyVirtualCPA :

then at age 70 you draw your higher benefit

Customer:

you've been very concise. thank you

MyVirtualCPA :

You're welcome. If you would, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

you've been very concise. thank you

Megan C and other Social Security Specialists are ready to help you
Thanks Adam for your positive rating and generous bonus. It is very appreciated. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security questions. It was apleasure working with you today.

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