Social Security FAQ with Eddie Holland

Dec 26, 2024

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You have to be at least 62 to collect Social Security…maybe because it takes that long to understand the program.

Do you have questions about Social Security? Of course, you do. Who doesn’t? Well, you don’t want to miss today’s program. Eddie Holland is back to answer more of your questions about Social Security.

Eddie Holland is a Senior Private Wealth Advisor and partner of Blue Trust in Greenville, South Carolina. He’s also a CPA, a Certified Financial Planner (CFP®), and a Certified Kingdom Advisor (CKA®).

Can You Claim Benefits Early and Switch Later?

You can claim Social Security benefits at 62 and switch to spousal benefits later if the spousal benefit is higher than your own. However, if your benefit is higher, you must take that instead. Conversely, you must wait to claim spousal benefits first and then switch to your benefit at full retirement age; you must take the higher of the two benefits available.

Survivor Benefits Exception

Survivor benefits are an exception where you can take one benefit and let the other grow. For instance, a widow can claim a survivor benefit as early as 60 and then switch to her benefit at 70, which would have grown due to delayed retirement credits.

Taxation of Social Security Benefits

Social Security benefits can be taxed based on your combined income, including half of your Social Security benefits, adjusted gross income, and any tax-exempt interest. Federal taxes apply progressively, with higher income leading to more taxable benefits.

Roth Conversions and Social Security

Be cautious with Roth conversions, as they can increase your combined income and make more of your Social Security benefits taxable. This strategy might push you into a higher marginal tax bracket.

Stopping Benefits

If you decide to stop your Social Security benefits, you can do so within the first 12 months of receiving them if you're under full retirement age. Beyond that, you can pause benefits after reaching full retirement age to earn delayed retirement credits.

Scams and Social Security

There is an increasing problem of Social Security scams. Legitimate Social Security issues will be communicated via mail, not phone calls, emails, or social media messages. If in doubt, always verify by setting up an appointment with your local Social Security office.

If you have questions about your benefits, consider consulting a Certified Kingdom Advisor (CKA®) who can provide tailored advice for your unique situation.

On Today’s Program, Rob Answers Listener Questions:

I have a substantial amount in an IRA. Should I roll it over to a Roth IRA and pay the taxes upfront, or just leave it in the traditional IRA and pay taxes later when I take distributions?
I'm 61 years old and have a car loan with 6.7% interest. I would like to know if I can take money from my 401(k) to pay off this car loan. Would that be a good idea?

Resources Mentioned:

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