Question about two SSI accounts (husband/wife)

[PeterB456245]

My wife and I are both retired, both upper 60’s, and both have SSI accounts, but haven’t started taking them yet. I’m reasonably healthy, but she is too, and statistically, she’s likely to outlive me. My proposed benefit payment is considerably more than hers.

I wasn’t going to start taking benefits until I had to (ie 70 1/2 currently?), since we are fairly comfortable financially, and my benefit will increase if we wait. Also, our understanding is that if I die first, as a surviving spouse she gets to receive my benefit…but not *both* mine and hers.

So we’re thinking, in a practical sense, we maybe should have her start taking her benefit now, since if if I get hit by a truck next year, at that point she effectively loses her benefit (and switches to mine).

Does that make sense? Do we have our facts right?

[GailL1]

@PeterB456245 

Terms and abbreviations are very important when dealing with Social Security and other government agencies - it is important to use the right one.

SSI is Supplemental Security Income - a welfare program for those that are blind, disabled or over the age of 65 and do not qualify for a Social Security benefit or not one that is higher than the SSI limit of $ 994 a month and is also reduced by in-kind payments.

I believe you are talking about your Social Security Retirement benefits.  

1.  ALWAYS take your Social Security Retirement Benefit at 70 years old because it stops the deferred earnings at that time. IOW, it stops earning any extra when one hits 70.   So no reason to keep it just sitting there.

2.  Survivors benefits pays the surviving spouse the higher benefit - their own OR their deceased spouse.  

3.  Your wife can definitely file for her own retirement benefits - at least 62 years of age is earliest retirement.  The highest full retirement age(FRA)  is 67 so she could be anywhere in between.  If she files BEFORE she has reached her FRA, her benefit will be reduced somewhat -  

4.  If you go ahead and file then she also has access to Spousal Benefits off your record - which will be 50% of your FRA base benefit (not with the delayed retirement credits added in up until you reach 70).  You have to have filed for your Spousal benefits to be open to her.  But if you do that, then SSA will compare her own benefits to her Spousal Benefits off your record and will pay her the larger of the two.  Again if she takes either of these before her FRA, they will be reduced. 

If you aren’t 70 yet and want to wait, she can just file for her own benefits now and then when you do file and her Spousal is larger, SSA can switch her from her own benefits to her Spousal benefits.

Do not confuse SPOUSAL benefits with SURVIVORS benefits - I have described both here separately.

[OneDayMatisyahu]

Fist go to the official ----> SSA.gov website for basic informational background.

Survivor benefits  ------->  https://www.ssa.gov/survivor = directly answers your specific questions

Use simple on-line searches like ----> ss spousal survivor benefits = the AI bots will usually give a nice brief summary and key notes.

If you can use youtube on a streaming device, there are various folks/ organizations that help explain Survivor Benefits. There are formulas that they use to calculate benefits/ at what times/ strategies.

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 🤔    By the way SSI  = really means Supplemental Security Income;  not the well known Social Security Retirement benefits that all of us knows about - yeah - I got that one confused too  awhile back; they are entirely two different animals.

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I was on you-tube browsing when I came upon 70 1/2 for a particular issue with RMD's; and then copied the following from a google search.

RMDs at age 70½ were the minimum withdrawals required from traditional IRAs and retirement accounts before the SECURE Act changed the starting age to 72.

Overview of 70½ RMDs

Before the SECURE Act of 2019, individuals were required to begin taking required minimum distributions (RMDs) from traditional IRAs, 401(k)s, 403(b)s, and other pre-tax retirement accounts in the year they reached age 70½
The purpose of RMDs is to ensure that retirement funds are eventually taxed, as the IRS does not allow indefinite tax deferral on these accounts
.

Timing and First Distribution
The first RMD could be taken any time during the year the individual turned 70½, but it could also be delayed until April 1 of the following year.
If the first RMD was delayed, the individual would need to take two distributions in the following year: one for the year they turned 70½ and one for the current year.

Calculation
The RMD amount is based on the account balance at the end of the previous year and the IRS life expectancy tables. For example, under the old rules, someone turning 70½ might be required to withdraw approximately 3.6% of their account balance for that year.
Each retirement account is calculated separately, and excess withdrawals from one account cannot offset the RMD of another.

Penalties
Failing to take the required RMD or withdrawing less than the required amount can result in a 50% excise tax on the shortfall.
 This makes timely and accurate RMD withdrawals critical.

Exceptions and Special Cases
Roth IRAs were not subject to RMDs during the owner’s lifetime, though beneficiaries are subject to RMD rules.
Participants in workplace retirement plans could sometimes delay RMDs until retirement, unless they were a 5% owner of the business sponsoring the plan.

Changes Under the SECURE Act
The SECURE Act, effective for individuals reaching RMD age after December 31, 2019, delayed the RMD starting age from 70½ to 72.
 However, anyone who turned 70½ before January 1, 2020 is still subject to the old 70½ RMD rules.
Understanding these rules is essential for retirement planning, tax compliance, and avoiding penalties. Individuals affected by the 70½ rule should ensure they calculate and withdraw the correct RMD amounts each year.

It's best if you talk to a 'tax professional' for this issue.

😎

[PeterB456245]

Thanks for the info!