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Esteemed Contributor
Posts: 6,716
Registered: ‎03-09-2010

Re: Social Security Payout Question.

[ Edited ]

Talk with your financial services rep or advisor.  

 

IRA withdrawals after age 59.5 are taxable income since the money was in a tax-deferred (qualified) account.  At age 70.5 you have to start taking the minimum distribution from qualified accounts.  Have your insurer take out federal and state taxes so you don't owe at year end.  

 

SS benefits increase the longer you wait to collect.  However, my advisor amortized it out and I could see how the difference impacted me for a few early years but evened out by my early 70s.  See if your advisor can do that for you.  I was surprised at the results. When you take SS, be sure you have federal and state taxes withheld.

 

You will want to know the impact on your personal qualified account/s, 401k, etc, before you decide to take withdrawals instead of SS.  It may cost you more long-term to take money out of your qualified account than taking SS.

 

 

Esteemed Contributor
Posts: 7,493
Registered: ‎03-09-2010

Re: Social Security Payout Question.


@Sooner wrote:

There's also the question is you retire earlier, take the ss income and bank it, how much would you have in the bank by the later retirement age, and how long would it be before you made up that amount.  

 

You can take it early then pay back and get a higher amount in some instances or it used to be that way.

 

Lots of numbers to shuffle and you need someone who knows the angles.  It isn't just about the difference per month to think about.  It's your total financial situation.


@Sooner - the reason I decided to take mine as soon as I could at 62.  

#1 - it would have taken 13 years to make up what I left on the table while waiting for a higher amount.

#2 - if I died before collecting any of it, no one would receive any of what I paid into it.

I dont' regret the decision one bit.

Honored Contributor
Posts: 22,782
Registered: ‎03-10-2010

Re: Social Security Payout Question.


@CelticCrafter wrote:

@Sooner wrote:

There's also the question is you retire earlier, take the ss income and bank it, how much would you have in the bank by the later retirement age, and how long would it be before you made up that amount.  

 

You can take it early then pay back and get a higher amount in some instances or it used to be that way.

 

Lots of numbers to shuffle and you need someone who knows the angles.  It isn't just about the difference per month to think about.  It's your total financial situation.


@Sooner - the reason I decided to take mine as soon as I could at 62.  

#1 - it would have taken 13 years to make up what I left on the table while waiting for a higher amount.

#2 - if I died before collecting any of it, no one would receive any of what I paid into it.

I dont' regret the decision one bit.


@CelticCrafter. You think like me!  Friends used to laugh at me because I would say I'm not waiting until I'm too old to appreciate or use it, and if I died first and didn't get much I'd be REALLY upset.

 

Yes, you DO need to run the numbers!  All of us have different needs and sometimes "conventional wisdom" just doesn't fit!  LOL!!

Respected Contributor
Posts: 3,315
Registered: ‎06-15-2014

Re: Social Security Payout Question.

You should consult a financial expert, and call social security with your questions

 

My understanding is SS payments are pro rated so amount payable  increases monthly until age 70.

SS is returning 8% yearly. You can compare that with IRA returns.

 

Very few investments are as safe as SS and are returning a guaranteed 8%. That is why in most cases it pays to wait . Of course, if you need the $ you don’t have the option of waiting.

 

Ask the experts before taking action and good luck.

Honored Contributor
Posts: 23,606
Registered: ‎05-10-2010

Re: Social Security Payout Question.

Just go to SSA.gov.  There is a calculator there that allows you to fill in retirement dates and it will tell you what your monthly benefit will be at any age.  

Trusted Contributor
Posts: 1,028
Registered: ‎03-10-2010

Re: Social Security Payout Question.


@CelticCrafter wrote:

@Sooner wrote:

There's also the question is you retire earlier, take the ss income and bank it, how much would you have in the bank by the later retirement age, and how long would it be before you made up that amount.  

 

You can take it early then pay back and get a higher amount in some instances or it used to be that way.

 

Lots of numbers to shuffle and you need someone who knows the angles.  It isn't just about the difference per month to think about.  It's your total financial situation.


@Sooner - the reason I decided to take mine as soon as I could at 62.  

#1 - it would have taken 13 years to make up what I left on the table while waiting for a higher amount.

#2 - if I died before collecting any of it, no one would receive any of what I paid into it.

I dont' regret the decision one bit.


@CelticCrafter

 

I so agree!!!

Frequent Contributor
Posts: 78
Registered: ‎07-22-2010

Re: Social Security Payout Question.

[ Edited ]

The closer you are to 66, assuming your retirement age is 66, the bigger the monthly pay out will be. If you wait until you are 70 the payout will be a lot bigger. You can find the different scenarios in the Social security site, it is very helpful and you can find all kind of information, but you must register to see your actual benefits.

IRA/401K withdrawals do not affect your social security payments, it is not earned income, just additional payments to supplement your SS from money you have saved. And if its a regular IRA you must start withdrawing at 70 1/2.

Once you start withdrawing from your regular IRA, it is taxable income. If you start withdrawing from a ROTH IRA you pay taxes only on the capital gains if any.

Frequent Contributor
Posts: 78
Registered: ‎07-22-2010

Re: Social Security Payout Question.

Social Security benefits will indeed increase if there is a COLA, that is cost of living adjustment. It is adjusted following inflation. The same as the cost for Medicare.

Regular Contributor
Posts: 230
Registered: ‎02-11-2017

Re: Social Security Payout Question.

they will take out federal taxes, but not the state.

Frequent Contributor
Posts: 78
Registered: ‎07-22-2010

Re: Social Security Payout Question.

They will take out federal taxes only if you select  the option, if not you might have to pay quarterly taxes if your income is high enough.