Social Security Payout Question.

BornToShop · ‎03-10-2010

I just turned 65 & want to retire now before my retirement age of 66. I have researched that my monthly payment would be $170 per month less if I retire now. My first question is, does that amount minimize the closer you get to 66? For example, I am 8 months to 66. Does the $180 gap become less if I retire 4 months or so before 66? My second question is, should I take IRA/401k withdrawals until 66 to ensure maximum Social Security payments? TIA!

itsmetoo · ‎03-10-2010

@BornToShop

You need to consult with your financial planner to determine what is best for you. But the longer you wait to start collecting SS the larger the amount will be.

software · ‎06-08-2016

Whenever you tell Social Security when you want to retire, based on your age and how much you've contributed, you are locked in to a monthly amount forever. Unless you get yearly increases like everyone else across the board. Cost of Living, for example.

I don't know what correlation there is between your IRA/401k and Social Security. They are 2 different "pots of money" . One is Federal the other is personal.

Any questions you have about your IRA/401k should be directed to the company holding the money, such as your bank or in my case it was Fidelity.

NicksmomESQ · ‎08-19-2014

@BornToShop The closer you get to 66 the more S.S. You will collect. That’s of course if you haven’t started collecting yet.Once you begin you’re benefit won’t increase.

I don’t know your financial situation but it is always best to wait until your full retirement age, to maximize your benefits.If you need the $ then yes, I would fill in the difference with $ from your 401k.There would be no penalties because you’re over 59 1/2.

itsmetoo · ‎03-10-2010

@software

I think she is asking should she start taking IRA withdrawals instead of SS so she can put off taking SS for awhile longer.

software · ‎06-08-2016

@itsmetoo wrote:
@software

I think she is asking should she start taking IRA withdrawals instead of SS so she can put off taking SS for awhile longer.

She can certainly do that but she'll have to pay tax on the amount she withdraws.

It's considered income.

Kachina624 · ‎03-10-2010

@BornToShop If I were you I'd call Social Security and ask them. Such questions posted on bulletin boards get some really bizarre replies.

New Mexico☀️Land Of Enchantment

phoenixbrd · ‎03-27-2010

Please get expert advice. Taking annual distributions from 403 B/Ira accounts when collecting SS can majorly impact your income as to tax bracket and what you pay for medicare. It is critical to protect yourself before you collect SS. Research and get expert advice.

itsmetoo · ‎03-10-2010

@software wrote:
@itsmetoo wrote:
@software

I think she is asking should she start taking IRA withdrawals instead of SS so she can put off taking SS for awhile longer.

She can certainly do that but she'll have to pay tax on the amount she withdraws.
It's considered income.

Exactly.

nomless · ‎03-10-2010

@BornToShop wrote:
I just turned 65 & want to retire now before my retirement age of 66. I have researched that my monthly payment would be $170 per month less if I retire now. My first question is, does that amount minimize the closer you get to 66? For example, I am 8 months to 66. Does the $180 gap become less if I retire 4 months or so before 66? My second question is, should I take IRA/401k withdrawals until 66 to ensure maximum Social Security payments? TIA!

Talk to a financial planner, not TV shopping forum posters. It's an important decision, so consult an expert, not shoppers.