Summary
Highlights
The speaker differentiates between 'earned income' (used for the annual earnings limit) and 'Adjusted Gross Income' (AGI). AGI, which includes retirement savings withdrawals, is relevant for determining 'IRMAA' (Income-Related Monthly Adjustment Amount) for Medicare Part B and D premiums, not for Social Security benefit reductions based on earnings.
The speaker opens by mentioning that many people are unaware of issues related to their Social Security records. He recounts common scenarios where individuals are mistakenly declared deceased by the Social Security Administration, leading to canceled credit cards and bank accounts. Historically, these errors often stemmed from incorrect social security number entries by funeral homes or coroner's offices.
The speaker reveals a new and alarming development: ICE and Homeland Security are reportedly collaborating with the Social Security Administration to identify individuals for 'self-deportation' by canceling their financial records based on outdated or incorrect status information. This can affect people legally in the country but with un-updated records.
If you immigrated to the US and have updated your legal status (e.g., from student visa/green card to US citizen), you MUST update your status with the Social Security Administration. Even if your social security number remains the same, your internal 'NUMI' record needs to reflect your current legal status to prevent issues with ICE/DHS. This is done by submitting an SS5 form (Social Security Card Application) with your naturalization certificate or updated green card in person.
US citizens should regularly review their Summary of Earnings Query (SEQ) via 'My Social Security' at ssa.gov. This ensures your earnings record is accurate for correct benefit calculations and helps detect identity theft, where someone might be working under your social security number. Such fraudulent activity could lead to complications, even demanding repayment of benefits if unearned income is incorrectly attributed to your record.
A viewer asks about the annual earnings limit ($24,480 for 2024 for those under full retirement age) and how it affects Social Security benefits. The speaker clarifies that this limit only applies to 'earned income' and not pensions, 401k withdrawals, or the Social Security check itself. If you exceed the annual limit, the Social Security Administration switches to a monthly limit for the remainder of the year. Any work income from before benefits started, even if paid later, does not count towards the earnings limit for the first year of benefits.
The discussion addresses how stay-at-home parents can still qualify for benefits based on a spouse's record and clarifies that marriage status is key, not personal contributions. It also delves into survivor and disabled adult child (DAC) benefits, explaining the 'family maximum' rule which can limit the total benefits paid out on one record, regardless of the number of eligible recipients.
For those enrolling in Medicare, the speaker advises that Social Security handles Part A and B enrollment but does not provide recommendations on private plans like Medicare Advantage, Medicare Supplement, or Part D prescription drug plans. These private plans should be explored with independent advisors like 'Chapter'. Creditable coverage from current employment (yours or a spouse's) might allow deferring Medicare Part B without penalty.
A viewer asks how to ascertain if ex-spouse benefits would be higher without formally applying. The speaker explains that while Social Security won't disclose an ex-spouse's exact benefit amount due to privacy, they will advise if you are 'eligible' and if it appears to be a 'more money' situation when you reach appropriate age, based on your combined information and their records.
The video concludes with advice on prescription drug costs. Beyond typical options like low-income subsidies (Extra Help) or GoodRx, a compelling anecdote is shared: a friend contacted a pharmaceutical company directly and received expensive cancer medication for free. The speaker confirms that pharmaceutical companies sometimes offer patient assistance programs. Another viewer suggests 'ConnectMD' for discounted generics and name-brand drugs.