July, 2022

Social Security July Newsletter

Social Security Spotlight: Divorce & Ex-Spousal Benefits
NARSSA | Social Security Newsletter | July 2022
July 2022 Newsletter


Hi there. Please enjoy reading our July newsletter filled with news and information on Social Security, retirement, and Medicare. Please reach out at info@rssa.com with any feedback on our newsletters. We are always happy to hear from you!


NARSSA Announcements  


NARSSA Announces Partnership with Avantax

Avantax Wealth Management provides its community of Financial Professionals, CPAs, and tax professionals with the support, training and tools supporting tax-advantaged financial planning and wealth management services to their clients. NARSSA and Avantax will be collaborating on several initiatives to promote Social Security education to affiliated firms that make up the Avantax Community. Read the press release.


Catch up with Devin  


If you’ve ever worked in a government job where you didn’t pay Social Security taxes and earned a pension from that work, it’s critical that you understand the Government Pension Offset because this rule can drastically reduce, or even completely eliminate, your Social Security spousal or survivors’ benefits. Watch this video.


Top Stories  

Source: InvestmentNews
NARSSA’s SETARA (Self-Employment Tax And Retirement Analysis) plans are featured in Mary Beth Franklin’s latest InvestmentNews story. SETARA plans provide business owners with the ability to minimize payroll taxes now while maximizing Social Security benefits later.
Source: The Motley Fool
The Social Security Expansion Act (SSEA) was introduced in June 2022. This piece of legislation would boost each recipient’s monthly check by $200. NARSSA’s President & Co-founder Martha Shedden’s thoughts on the SSEA are shared in this story.
Source: CNBC
As a result of inflation, the Social Security COLA (Cost-of-Living-Adjustment) has the potential to be a whopping 10.5 percent. This is just an estimate, as there is still time to determine what the 2023 COLA will be.
Source: Power Your Advice Podcast
Martha is a guest in this episode of Power Your Advice with Doug Heikkinen. Doug and Martha talk about the benefits of taking Social Security at the right age and how important this asset is to clients’ retirement plans.


Ask Martha  

Question: I work full-time and care for my disabled adult son. My ex-spouse recently started getting disability. Can I qualify for anything? It gets very exhausting at 61 to do all I am doing.
Martha’s Response: Yes, maybe. When you turn 62, you may be eligible for benefits based on your ex-spouse’s earnings if you were married for 10 years or more, are currently single and your own retirement benefit is lower than the spousal benefit. Your son may be eligible for adult disabled child benefits. There are exceptions and conditions to these rules, such as…Read full response or Ask Martha your own question.


Social Security Spotlight: Divorce & Ex-Spousal Benefits


What are the divorced eligibility requirements for collecting Social Security benefits? If you are divorced, you still may be eligible to receive benefits based on your ex-spouse’s record (and your ex-spouse may be eligible to receive benefits based on your record too). You may be eligible to collect ex-spousal benefits if you were married for more than 10 years, you are currently single, and you are at least age 62.

Does my ex-spouse need to be collecting their retirement benefits in order for me to collect benefits based on his/her record? It depends. If you have been divorced for more than 2 years, you are considered “independently entitled” and therefore your ex-spouse does not need to be collecting retirement benefits in order for you to receive ex-spousal benefits based on his/her record. If you have been divorced for less than 2 years, you must wait until your ex-spouse is collecting their retirement benefits in order for you to collect a spousal benefit based on his/her record.

Will my ex-spouse know that I am receiving benefits based on his/her record? It is common for individuals to be completely unaware that their ex-spouse is collecting benefits based on their record. Ex-spousal benefits will not have an impact on the benefits of the one whose record they are being paid from.

What documents will I need to apply for ex-spousal benefits? There are several documents you may need and these include your birth certificate, proof of citizenship, W-2, marriage certificate, and divorce decree.

Learn more about applying for ex-spousal benefits.


Case Study of the Month  


Some clients are just looking for reassurance that they are on the right track. And we hope to confirm that for them. I recently met with a couple, aged 69 and 59. The husband is older and has a higher PIA, and planned to wait until 70 to file. After reading an article online, they reached out, very concerned that he should have filed sooner. After reviewing their circumstances – benefit amounts, life expectancies, future earnings, other finances – it was clear that they were on the right track. As an RSSA, the confidence you can offer your clients is invaluable!


Listen up: Podcasts by the RSSA Team  

Social Security: Answers From The Experts

Each week, Martha Shedden meets with financial experts to discuss important issues on Social Security and retirement planning. Her guests include Mary Beth Franklin, Robert Powell, and more. Listen now.


The Devin Carroll Show

The Devin Carroll Show sponsored by NARSSA is a caller-driven show that helps you simplify the complicated Social Security rules so you can get every dollar in benefits you deserve. Listen now.


Medicare Update  


4 strategies that can help you avoid paying extra every month for Medicare premiums

Source: CNBC


“Most Medicare enrollees pay the standard premium amounts for Part B and Part D. Yet an estimated 7% of Medicare’s 64.3 million beneficiaries end up paying extra because their income is high enough for income-related monthly adjustment amounts, or IRMAAs, to kick in…”


Consult with an RSSA to optimize your benefits  

Most people make a sub-optimal filing decision, losing out on money they are entitled to. An RSSA can help you optimize your Social Security benefits and support you in making the best decisions for your personal situation. Get help now.


Train to become a Social Security expert  

Are you a financial or state-licensed professional? Download our free white paper and discover the benefits of becoming a Social Security expert and offering Social Security advisory services to your clients. Ready to get started with our self-study program? Sign up now.


Advisor Support Program

Are you a financial advisor, CPA, lawyer or NARSSA member with clients that need help with Social Security? Join our Advisor Support Program. We can help your clients take advantage of strategies that may yield hundreds of thousands of dollars in additional lifetime benefits. It’s simple. Enter your client’s information into the secure portal and we’ll provide you with a percentage of the invoice. Learn more.

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