Social Security: Suspending Payments vs. Withdraw of Benefits Election
It’s not an uncommon occurrence when a retiree turns on their social security benefits, but then all of a sudden take on either part-time or full-time employment, begin making more income than they expected, and they start searching for options to suspend their social security benefits until a later date.
The good news is there are “do-over” options for your social security benefit that exist depending on your age and how long it’s been since you started receiving your social security benefits. The are two different strategies:
Turn on Social Security at 62 and Your Minor Children Can Collect The Dependent Benefit
Not many people realize that if you are age 62 or older and have children under the age of 18, your children are eligible to receive social security payments based on your earnings history, and it’s big money. However, social security does not advertise this little know benefit, so you have to know how to apply, the rules, and tax implications.
Social Security Income Penalties Are Refunded To You When You Reach Full Retirement Age
If you turn on social security prior to your fully retirement age andmake too much money in a given tax year, Social Security will assess an earned income penalty against your social security benefit but not many taxpayers realize that your get those penalties refunded to you once you reach Full Retirement Age
