Life is pretty simple these days. Other than the caregiver almost quitting due to faulty information the week was uneventful.
Last week. Sunday was lunch out with Mom. Monday the movie LARRY CROWNE with Nancie. We had a nice time and she was really easy to be around. The movie was better than what the critics said about it. That agrees with Rottentomatoes.com with 85% of the viewers giving it a positive rating and 43% of the critics giving it one. Because Nancie has lost her nephew and her cat of seventeen years after the movie I gave her a card and a "memory album" that she could put pictures of the ones she lost it in it. I truly believe our memories keep the ones we loved that have moved on alive. She was very touched by the gift. Tuesday I mowed the lawn and did work around the house and started reading the latest J.A. Jance book, BETRAYAL OF TRUST. I also met with Mark to pick up a work assignment. Wednesday was at Mom's. We played a couple of games of Scrabble. Thursday was at Mom's all day. I did some shopping for her. We played three games of Scrabble. Friday was the day I spent a lot of time typing up the rules for social security to keep the caregiver from quitting. Saturday I finished BETRAYAL OF TRUST, started two work projects, and worked my other occupation of future lottery winner.
Today I am finishing the two work assignments. Then it is shopping for Mom. A nice long bath is on the agenda. Monday is my sister's birthday so I am taking her to the casino for lunch. Tuesday & Wednesday nights are at Mom's. Wednesday during the day I am taking my Nephew and his family to the airport. His youngest is graduating from basic training and they want to be there for her. Thursday is all day at Mom's. Friday and Saturday are me days but I do plan on doing some estate matters for both Mom and myself.
SOCIAL SECURITY RULES.
There are two things most people are interested in where social security is concerned. One is should I take my social security when I turn 62 or should I wait until my full retirement age? I am not going to discuss that here because it is an individual decision and every individual's situation is different. I suggest you meet with your own CPA or financial advisor and discuss it with him or her. The second thing people are interest in is, if I take my retirement at age 62 how much *earned income* can I make before I am penalized and how much is the penalty? Here are the rules as they are now, no guarantees that they won't change in the future.
The first thing you have to calculate is your full retirement age for Social Security. It is based on the year you were born. Here is a chart. The year your are born is mentioned first followed by your full retirement age:
1937 or earlier 65
1938 65 and 2 months
1939 65 and 4 months
1940 65 and 6 months
1941 65 and 8 months
1942 65 and 10 months
1943-1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67
(If you were born on January 1st of any year you should refer to the previous year)
How much can you make if you decide to take your social security at 62 and your full retirement age is 66?
You can make earned income of $14,160. Earned income is money you earn by doing something. Working for a wage or what your earn from running your own business. Income you receive for doing nothing or for what your did in earlier years does not fit the description of earned income. That means to reach the $14,160 you don't have to include money from partnerships (unless you received a wage of guaranteed payments), interest income, dividend income, pensions, awards and prizes, gambling winnings, from social security, lottery winnings,deferred compensation, and so forth. You have include money your earned for work and that is about that.
We assumed you retired at 62 and your full retirement age was 66. This is what your are penalized if your earn more then $14,160.
FROM AGE 62 - 65.
You are penalized one dollar for every two dollars you earn over $14,160. For example, If you earned $15,360. You went over it by twelve hundred dollars You are penalized $600 and the following year they will reduce your monthly social security by fifty bucks.
THE YEAR YOU REACH FULL RETIREMENT AGE.
In the example 66 was full retirement age. In the year you reach full retirement age you can earn $37,680 before you are penalized. You are penalized one dollar for every three dollars over $37,680. If you earned $39,880 you would go over the limit by twelve hundred dollars. Your penalty would be $400 and they would reduce your monthly social security payments the following year by $33.00
THE YEAR FOLLOWING THE YEAR YOU TURN FULL RETIREMENT AGE AND ALL FUTURE YEARS.
They is no limit on your earnings. You can earn whatever you want and not be penalized.
That is it for the day. It is update day so share your lives with me. Post what every you damned will please.
Subscribe to:
Post Comments (Atom)
6 comments:
I'm glad you and Nancie are still enjoying each other's company. Very nice of you to get her the memory album, too. I will try to see LARRY CROWNE on DVD. We saw THE LINCOLN LAWYER last night, and while it's not a Great Movie, it was entertaining and we enjoyed it.
As usual, your week sounds quite full, but that's a Good Thing, right?
Excellent information on earnings vs. Social Security. Thanks for posting it.
Ah, another Jance fan. I read her entire Brady series and have started on the Ali Reynolds books. Haven't tackled Beaumont yet.
Glad to hear you and Nancie are able to see each other, despite your busy schedule. I'm sure she appreciated the memory book. You did lots last week and it sounds like another busy week ahead.
Good job on clarifying the SS earnings rules and ceilings.
Last Sunday I played with yarn all day. Monday I rode to Liberty with Himself, crocheting during the drive (when not watching scenery) and during his meeting with a client. Tuesday was a Costco run, which took most of the day, by the time I did inventory, we made the run and found places for everything we bought home (read, rearrange freezers and pantry). We put in an electric wire fence around the fig trees, as the dogs were making themselves sick. Wednesday was line dance, Thursday and Friday I actually got in some editorial hours, although I saw the therapist Thurs and the chiro Fri. Yesterday Scamp and I walked down to the neighbor's garage sale and she was a very good little girl, no barking or jumping on people. (Actually, she's pretty shy, I think). I got the RV cleaned from end to end and staples replenished, so we're good to go on Friday. Hit the high spots on cleaning the house, got the laundry done (not folded). Friends came over and picked a bunch of figs that evening. Today I've spent most of my time reading and relaxing. It is so hot and humid, with heat indexes between 106 and 108, I'm like much of the population - lethargic, even though I spend little time outside, other than housetraining sessions. It only takes about 15 minutes outside, just standing around, to make one wilt. We've lost one hosta, maybe more, in the front garden, despite all the watering we do. With only the two day break in the heat wave, last weekend, lots of people are starting to get cranky.
Hi Pat
The interesting thing about giving Nanciethe memory album was that she said I was the only one to do so.
LARRY CROWNE probably isn't as good as THE LINCOLN LAWYER but it is entertaining with some unexpected performances.
You are welcome for the S.S. information. I just translated the information from the ss web page.
Bill
Hi DR
I think Mary Willams and I were the ones that suggested J.A. Jance to you. Mary liked the Beaumont series the best, I liked the Brady series the best. I've read all three series completely now. She also has a fourth series about Indians in Arizona which is just not my style, to deep. I like her writing because in all three series that I read they have strong women characters. Now Beaumont has a strong wife character that is also his partner in the department. By the were there were two books were Brady and Beaumont worked together.
The SS rules are pretty easy to understand until a government agency tries to describe them.
Playing with yarn actually sounds fun as does the trip on Monday. I am no longer a member of Costco because their quuanty is way to much for a single person but I always enjoyed my excursions there when I was a member. Putting the electric fence in sounds like hard work. I am glad you are getting line dance in and I hope the pain is less now when you dance. Yea for Scamp! Hope the trip on Friday is fun and relaxing. We are starting to get a heat wave but it is in the 80s.
Bill
Did I ever tell you my JA Jance story? I met her at a book fair once. She didn't have anybody at her table, so I stood and chatted with her for a few minutes. I told her I loved the character of Joanna Brady's mother, I think her name is Eleanor maybe? Because she reminded me of my own mother. And Ms. Jance rolled her eyes and said, oh, don't even get me started. Apparently there is more than a bit of her own mother in there. Heh.
Good summary of the social security rules, you write far better than my usual sources of information.
Hi Mary
I love your J.A. Jance story. Her mom could be very much like that!
The mother I really like, well grandmother. Is the grandmother in the Stephanie Plub series by Janet Evonovich. Debbie Reynolds is going to play her in the movie.
Thank you for the nice compliment about my writing. My clients have taught me over the years about how to present things to them.
Bill
Post a Comment