Are you a business owner with an at-home spouse who helps out with bookkeeping or other tasks that need to be done? Once you get to retirement age it’s too late, but for those of you in your 20’s, 30’s, 40’s or even 50’s there’s still time to let these efforts build future benefits. Paying your spouse at least $4,880 a year will ensure that they continue to vest into the Social Security system, which will help you at retirement time.
To fully vest you need to earn at least 40 credit hours, with a maximum of 4 credits per year at $1220 per credit. Spouses who are not vested can still pull a half benefit off of their working spouse’s retirement benefit (or ex-spouse’s, if married over 10 years). If widowed after being married a year or more you can draw benefits up to your deceased spouse’s full amount, depending on the age when you decide to file.
If both spouses have work history, the Social Security retirement benefits picture can drastically change for the better. With two vested partners you’ll also have more options, such as the potential for the lower-earning spouse to pull earlier while delaying the higher earning spouse’s filing until age 70 to get the highest benefit. And don’t forget that Social Security disability benefits are hinged on a person working at least five out of the last 10 years, which can help should the worst happen.
As you can see, it’s in your best interest to ensure that the work both partners contribute to your business is recognized as paid employment by the Social Security Administration. We offer a pre-check Social Security planning option that will help you review where you are today and give insight about the impact on future income you can make by ensuring that both spouses are being paid for the work that they do.
Please contact our office to learn more or sign up today to start planning for your retirement.
Parents take care of us for so many years, and in some cases we are able to help our own parents in their retirement. But what will happen if your dependent parent outlives you?
Very few people know about an important Social Security benefit that can help your financially dependent parent should you pass away before they do. If your parent relies on you for more than half of their living expenses, they may be able to receive benefits in the event of your death. In order to take advantage of this benefit you must have earned enough credits to qualify for Social Security – that’s 40 credit hours – and your parent must:
- Receive at least half of their support from you
- Be at least 62 years old
- Not have remarried since the adult child’s death
- Not have an individual Social Security benefit that’s more than the potential benefit based on your earnings
This benefit can be an important source of support for your aged parent in the unfortunate event of your death.
If you’d like to learn more about this or other Social Security benefits that can help your family, please contact our office at firstname.lastname@example.org, or sign up for your Social Security benefit plan today.
There are 4.3 million families that currently receive Social Security benefits to help support their children, but many more are eligible and don’t even know they could be getting additional income each month. Qualifying for this benefit has little to do with the children – it’s based on the parents’ status. (Disabled children may be able to collect Supplemental Security Income benefits based on their condition. They may also qualify for the benefits described in this article but the rules are slightly different.)
In a nutshell, Social Security benefits for children are designed to replace the income that is no longer provided by a parent who has retired, died or become disabled and therefore cannot work. The retired, deceased or disabled parent must have worked long enough to qualify for Social Security and the child must be unmarried and under 18 or a full-time student. Benefits end on the child’s 18th birthday, unless he or she is a full time high school student. In that case, benefits continue until graduation or two months after the child’s 19th birthday, whichever comes first.
Social Security benefits for children can be paid to a parent, step-parent, grandparent or another person who cares for the child (but the benefits may stop earlier in this case). The amount received each month depends on the specifics of the situation and the retired, deceased or disabled parent’s work history. In general, benefits are up to 50% of the full amount of a parent’s disability or retirement benefit or as much as 75% of the amount a deceased parent would have received. If other family members also receive Social Security benefits, a family cap on the amount received applies.
If you think you might qualify for Social Security income for a child in your care, contact our firm today. We’ll help you find out about any financial benefits you may be entitled to and complete the filing process so you can start receiving that income each month.