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Help with Retirement

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Anonymous
Not applicable

Help with Retirement

Hi, Hope someone can help. My husband has been on Social Security Disabilty for 10 years. He recently found out he should have been able to get his retirement. They will only go back 2 years. He will get a lump some of about 13,000. How much are they going to keep for taxes?  

 

WE have 3 options:  

 

14,567 single life annuity form of benefit

13,111 joint and survivor annuity form of benefit

12, 382 qualified optional survivor annuity form of benefit. 

 

the monthly benefits also go down with each of the above options.

 

which is the best option? Im guessing single life is just him, joint survivor would be spouse and children????  I dont know what the other one means.  

 

What kind of lawyer deals with this info? I dont want to make the wrong choices. 

 

They also say we can do the 2 years retroactive or just start out new? What is the benefit of starting new and giving back the 2 years be? 


thanks

 

Tara

 

 

Message 1 of 5
4 REPLIES 4
iv
Valued Contributor

Re: Help with Retirement


@Anonymous wrote:

Hi, Hope someone can help. My husband has been on Social Security Disabilty for 10 years. He recently found out he should have been able to get his retirement. They will only go back 2 years. He will get a lump some of about 13,000. How much are they going to keep for taxes?  

 

WE have 3 options:  

 

14,567 single life annuity form of benefit

13,111 joint and survivor annuity form of benefit

12, 382 qualified optional survivor annuity form of benefit. 

 

the monthly benefits also go down with each of the above options.

 

which is the best option? Im guessing single life is just him, joint survivor would be spouse and children????  I dont know what the other one means.  

 

What kind of lawyer deals with this info? I dont want to make the wrong choices. 

 

They also say we can do the 2 years retroactive or just start out new? What is the benefit of starting new and giving back the 2 years be? 


thanks

 

Tara

 

 


Yes, Single Life is just him.  Payments stop on his death.

 

QJSA (Qualified Joint and Survivor) is him + you (not kids), lower payments, but provides you between 50% and 100% of the payments after his death.  (Higher survivor percentages == lower monthly payments.  It's a trade-off.)

 

QOSA (Qualified Optional Survivor) is similiar to the QJSA, with somewhat different terms.

 

You need to consider lots of factors - both of your ages (and life expectancies... it's morbid, but important), your current assets/income, your Social Security options as well as his SS Disablilty, etc.... which options are the best choice depend on too many things for anyone here to give a quick, easy answer without knowing the rest of your financial picture.

 

It's not a lawyer you need to talk to, it's a financial planner/advisor.

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Message 2 of 5
thom02099
Valued Contributor

Re: Help with Retirement


@iv wrote:

@Anonymous wrote:

Hi, Hope someone can help. My husband has been on Social Security Disabilty for 10 years. He recently found out he should have been able to get his retirement. They will only go back 2 years. He will get a lump some of about 13,000. How much are they going to keep for taxes?  

 

WE have 3 options:  

 

14,567 single life annuity form of benefit

13,111 joint and survivor annuity form of benefit

12, 382 qualified optional survivor annuity form of benefit. 

 

the monthly benefits also go down with each of the above options.

 

which is the best option? Im guessing single life is just him, joint survivor would be spouse and children????  I dont know what the other one means.  

 

What kind of lawyer deals with this info? I dont want to make the wrong choices. 

 

They also say we can do the 2 years retroactive or just start out new? What is the benefit of starting new and giving back the 2 years be? 


thanks

 

Tara

 

 


Yes, Single Life is just him.  Payments stop on his death.

 

QJSA (Qualified Joint and Survivor) is him + you (not kids), lower payments, but provides you between 50% and 100% of the payments after his death.  (Higher survivor percentages == lower monthly payments.  It's a trade-off.)

 

QOSA (Qualified Optional Survivor) is similiar to the QJSA, with somewhat different terms.

 

You need to consider lots of factors - both of your ages (and life expectancies... it's morbid, but important), your current assets/income, your Social Security options as well as his SS Disablilty, etc.... which options are the best choice depend on too many things for anyone here to give a quick, easy answer without knowing the rest of your financial picture.

 

It's not a lawyer you need to talk to, it's a financial planner/advisor.


This.  If possible, find a fee only financial planner/advisor, one who will charge you a single fee for in-depth advice, rather than one who is trying to sell you their particular long term plans.  

Message 3 of 5
Anonymous
Not applicable

Re: Help with Retirement

Thank you both. I would have never thought financial planner. we have one at work I can talk to. Ill see if he can also advise on this part along with retirement stuff. I need to go see him anyways.


Tara

Message 4 of 5
sarge12
Senior Contributor

Re: Help with Retirement


@Anonymous wrote:

Hi, Hope someone can help. My husband has been on Social Security Disabilty for 10 years. He recently found out he should have been able to get his retirement. They will only go back 2 years. He will get a lump some of about 13,000. How much are they going to keep for taxes?  

 

WE have 3 options:  

 

14,567 single life annuity form of benefit

13,111 joint and survivor annuity form of benefit

12, 382 qualified optional survivor annuity form of benefit. 

 

the monthly benefits also go down with each of the above options.

 

which is the best option? Im guessing single life is just him, joint survivor would be spouse and children????  I dont know what the other one means.  

 

What kind of lawyer deals with this info? I dont want to make the wrong choices. 

 

They also say we can do the 2 years retroactive or just start out new? What is the benefit of starting new and giving back the 2 years be? 


thanks

 

Tara

 

 


Tara...I like your husband, am on SSDI. After 2 years of being on my companies LTD, the rules for what is considered disabled change from able to do my job I had before, to being able to do any job that pays 60% of my prior pay. I was an electro-mechanical troubleshooter, and they claimed I could be a planner(desk job). At 57yo...no way I could find job that was within my restrictions, I have permenant spinal cord damage. I was then entitled to my pension with all the same choices you mention above, or I could take all of it as a lump sum payment of roughly 400,000 dollars. In addition I had 200k in my 401k. I rolled the 400k lumpsum into tax deffered retirement savings, and will only have to pay taxes on it as I choose to withdraw it. It basicly supplements about 2100 a month in SSDI benefits. If I draw out too much at a time, it causes not only a higher tax bracket, but causes too much of SSDI income to become taxable. If I were you all, I would explore rolling the lump sum amount over into IRA, or other form of tax deffered retirement savings. That large lump sum will probably cause too much of your husbands SSDI benefits to be taxed, better to withdraw at a slower rate.

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Message 5 of 5
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