By Elliot Raphaelson
Q: In a recent column, you indicated that if you remarried after age 60, and had been receiving a spousal benefit on the basis of your ex’s Social Security earnings, that benefit ends immediately, and you had to wait a year before you could receive a benefit from your new spouse. I believe there is an exception which your readers should know about in the Social Security Handbook.
A: You are correct, there is an exception which is very important for those who need a continuation of spousal benefits.
It is true that a spousal benefit, which you receive from an ex-spouse if you had been married at least 10 years, ends as soon as you remarry. You are required to inform the Social Security Administration when you remarry if you have been receiving a spousal benefit from your ex.
In the
Social Security Handbook, Section 305.E.3, the exception is explained. If you had been receiving a spousal benefit from your ex in the month prior to remarrying, you do not have to wait a year to receive a spousal benefit from your new spouse. You can receive an immediate spousal benefit; you don’t have to wait a year.
As long as you are at least 62 years old, you can receive a spousal benefit. However, when you apply for this benefit, you are also applying for the benefit based on your work record; you are entitled to whichever is higher. However, when you apply for a benefit earlier than your full retirement age (FRA), your benefits, both spousal and based on your work record, are permanently reduced.
Many individuals mistakenly believe they can apply for a spousal benefit as early as 62 and later obtain a higher benefit at their FRA or age 70. This is not true. Once you apply for a benefit earlier than FRA, you no longer have the option to apply for a benefit later in order to receive a higher amount.
Q: I have several EE bonds that mature in 2022. I would like to reinvest the proceeds into I bonds. Can I do a conversion and postpone tax liability?
A: No. You cannot convert maturing EE bonds into I bonds. When EE bonds mature, you have an income tax liability based on the increase in value of the bonds in the year you redeem them. You can certainly reinvest the proceeds into I bonds (up to the annual purchasing limit). But you can’t do a conversion in order to avoid the tax liability associated with the EE bond maturity and redemption.
Q: I am confused about the regulations associated with survivor benefits. I was always under the impression that, once you are divorced, you are no longer entitled to receive a survivor benefit from a former marriage. Is this true? If not, what are the relevant regulations?
A: It is not true that, once you divorce, you are not entitled to a survivor benefit based on a prior marriage. Social Security regulations specify that as long as your previous marriage lasted at least 10 years, and you remarried after age 60, you are entitled to a survivor benefit if your ex predeceases you.
However, you would only be entitled to whichever amount is higher, the survivor benefit from your ex-spouse or the benefit you are now receiving in your current marriage, whether it based on your work record or a spousal benefit from your current marriage. If your current spouse predeceases you, you would then be entitled to whichever is higher between the survivor benefit from your deceased ex-spouse and the survivor benefit based on the earnings record of your current spouse.
(Elliot Raphaelson welcomes your questions and comments at [email protected].)
(C)2022 Elliot Raphaelson. Distributed by Tribune Content Agency, LLC.
The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
