Hi all! So, I am asked the same Social Security questions all the time. So, I thought I would share answers to some of the most asked questions from our clients.
Q: How much do I have to earn to stop contributing to Social Security in a single year as an individual?
A: $142,800 in 2021
Q: How much am I allowed to earn at work before I reach my full retirement age and not be penalized?
A: For 2021, that limit is $18,960. In the year you reach full retirement age, Social Security will deduct $1 in benefits for every $2 you earn above a different limit.
Q: What is the required minimum distribution amount you must begin taking out of my IRA or (401)k?
A: If you became 70 ½ prior to 2019, you must take in the year you turn 70 ½ – 3.65% of the December 31st previous year balance of all of your retirement accounts. If you did not turn 70 ½ prior to 2019, you must begin taking distributions from your retirement accounts by age 72. That distribution must be 3.91% of the December 31st previous year balance of all of your retirement accounts.
Q: I heard that I can request from Social Security, a lump sum check when I start my benefits.
A: Yes. They can back date your benefits and provide up to six months in a lump sum payment.
If you have more questions that you would like answered, please feel free to take advantage of our Online Social Security Workshop, offered once a month. The dates are on the back of this newsletter. Need answers quicker and don’t want to sit on hold with the Social Security office for 2 hours?
Just call and schedule an appointment with one of our Advisors. Of course, there is no charge