#1 Suspend Benefits To Increase Them?
How close are you to retirement? Have you really given it thought? Like now, do you know when you plan on retiring or are you winging it, as many are? The 60’s are being called the new 40’s, so for many of us – working another 10 years isn’t out of the question, especially if you enjoy working. But let’s say you’ve already started social security… did you know you can suspend benefits to increase them? That’s right. This post is about something called Start Stop Start. If you want to read this in its original format, chick FORBES article.
When to start receiving retirement benefits
So, if you are already collecting your retirement benefit and are at or over full retirement age, you can tell Social Security you want to suspend further benefits and then ask them to restart your benefits at a later date, say age 70. Social Security will then apply its Delayed Retirement Credit to your existing benefit once you start collecting again. Hence, this is a means by which current Social Security recipients who aren’t yet 70 can collect higher benefits, albeit at the cost of giving up their check for a while. But this trade off will, on net, often be very advantageous. For example, if you started collecting at 62 and are now at your full retirement age, i.e., 66, you can suspend benefits until 70 and then start collecting 32 percent higher benefits for the rest of your life. This benefit collection strategy can be called Start Stop Start. We are in the process of rolling out a new update of www.maximizemysocialsecurity.com, which incorporates Start Stop Start. Source: Forbes, Contributing Author Laurence Kotlikoff
We do more than just tax preparation. US-TaxLaws is your best source for professional tax preparation and/or financial consulting services that include:
Personal Tax Preparation Business Tax Preparation Partnership Tax Preparation
Corporate Tax Preparation Incorporation-Choice of Entity Business Support Services
Corporate Compliance Audit Representation Retirement Tax Planning Wills & Trusts, Estate Planning Bookkeeping Payroll