Social Security Planning
Social Security planning is very important to ensure a person maximizes the amount he/she collects over his/her lifetime. The following are important points to be considered:
- At What Age Should a Person Collect Social Security?
- What Impact Does Marriage, Divorce, Remarriage, and Widowhood have on Social Security?
- How Should a Person Coordinate Social Security with IRA RMD’s?
Frequently Asked Questions
Retirement, Disability, and Survivor’s Insurance.
Social Security is an annuity, as it provides guaranteed income for life.
You must have 40 Quarters of coverage through your own or spouse’s employment. Quarters are earned when you work and pay Social Security taxes.
In 2024, $1,730 equals one quarter.
Currently, Social Security is fully funded through 2034. Thereafter, tax revenue will be sufficient to pay approximately 78 cents on the dollar in benefits.
Year Born | Full Retirement Age |
1937 or earlier | 65 |
1943 – 1954 | 66 |
1955 – 1959 | 66 and 2 months – 66 and 10 months* |
1960 or later | 67 |
Age | Percentage of Benefit |
62 | 75% |
66 or FRA | 100% |
70 | 132% |
In 2024, Social Security is reduced by $1 for every $2 of earned income beyond $22,320.
If you reach full retirement age in 2024, Social Security is reduced by $1 for every $3 earned beyond $59,520.
Mandatory payroll taxed by employers and employees- currently 6.2% each.
File single and make over $25,000 – 50% of benefit taxable.
File single and make over $34,000 – 85% of benefit taxable.
File married and make over $32,000 – 50% of benefit taxable.
File married and make over $44,000 – 85% of benefit taxable.
Federal taxes only- No state tax in Maryland.
Social Security can give information but does not give advice
- Married at least 10 years
- Divorced at least 2 years
- Not remarried
- Ex spouse must be eligible to claim or already claim benefits
- Does not affect ex-spouse’s earnings
- Marriage must have lasted at least nine months.
- You must be at least 60 years old.
- Not remarried prior to age 60.
- You can collect survivor benefits and switch to your own benefit later, if that will maximize your benefit.
Your benefit is calculated on highest 35 earning years
In 2024, maximum monthly benefit at age 70 is $3,822.
Wages indexed for inflation ($5,000 in 1974 equals $28,950 today)
Current statement available at www.ssa.gov/mystatement
Be Sure to check your statement for accuracy (approximately 10% are incorrect)
