Anonymous
07/08/2025 18:35
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:If DH dies before me, because our SS checks will be about the same, I won't collect any of his, and vice versa. So we decided we should both collect starting at 62 as long as possible. I think the decision is different if your spouse is counting on the higher survivor benefit.
I am sorry but can you explain your logic behind that? I am not understanding how your situation is driving your decision.
Neither my spouse's or my benefit will continue when we die unlike couples with different benefit levels. For example, my mom had a tiny SS check since she was an immigrant, so it was important to get my dad's as high as possible (he was older) since that would be all she would live off of when he died. (We assumed he would die first, and he did). But for me, why would we forgo 2 equal SS checks for 8 years when our own benefit will end upon death, not continue until the death of spouse like in the case of my parents. So the length of time receiving the payment is most likely shorter since neither of us will get the other's survivor benefits. I am sure there is an actuarial term for this, but I am not knowledgable.
Anonymous
07/08/2025 17:29
Subject: Re:Taking social security at 62?
Anonymous wrote:I turn 62 in August and have not worked in 20 years (but big law before that) and DH (big law) will likely work until he falls over dead. My thought about taking SS at age 62 is that it will be eaten up by DH's top tax bracket? I don't know how to "run the numbers" on this.
I think you can take at 62 and when your DH takes his, compare yours vs. his and decide whether you want to take the spousal SS (50% of his) instead at that time. Wait until he is 70.
Anonymous
07/08/2025 17:19
Subject: Re:Taking social security at 62?
I turn 62 in August and have not worked in 20 years (but big law before that) and DH (big law) will likely work until he falls over dead. My thought about taking SS at age 62 is that it will be eaten up by DH's top tax bracket? I don't know how to "run the numbers" on this.
Anonymous
07/08/2025 17:15
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
Oh I did not know that about MD. Can you provide a link please?
Made a mistake SS is not taxable. But 401k withdrawls starting at 65 of 40K or less not taxable within certain income limites
Up to 85% of your Social security is taxable federally and its subject to state taxes in at least 9 states.
Sorry I just realized you were talking about MD state taxes
Anonymous
07/08/2025 17:14
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
Oh I did not know that about MD. Can you provide a link please?
Made a mistake SS is not taxable. But 401k withdrawls starting at 65 of 40K or less not taxable within certain income limites
Up to 85% of your Social security is taxable federally and its subject to state taxes in at least 9 states.
We are specifically talking about MD.
Anonymous
07/08/2025 17:13
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Anonymous wrote:In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
Oh I did not know that about MD. Can you provide a link please?
Made a mistake SS is not taxable. But 401k withdrawls starting at 65 of 40K or less not taxable within certain income limites
Up to 85% of your Social security is taxable federally and its subject to state taxes in at least 9 states.
Anonymous
07/08/2025 16:55
Subject: Taking social security at 62?
Anonymous wrote:There are only a couple of reasons to wait, namely that you’re still working or SS will be your only or primary retirement income.
If you have a lot of money, it makes sense to take SS as early as possible for several reasons: 1) you can invest it at a higher rate (and you can always buy a longevity annuity with the appreciated assets); 2) you don’t know how long you’ll live, so you might as well get it while you can; 3) differences in spousal amounts don’t matter much for wealthy couples because their other investments overwhelm the difference; 4) SS income might impact decisions about transfers from traditional IRA to Roth, but unless both spouses start SS at the same time, SS income is too small to matter much tax wise.
Basically, if you’re poor or still working, wait; if you’re rich take it ASAP.
I don't know what you mean by "have a lot of money" or "rich," but we will have more than $6m invested when we retire, and I intend to wait until I am 70. As another PP pointed out, a guaranteed8% return is excellent - sure, you might get more investing, but you might not. In addition, my SS payments will be significantly greater than my wife's, and she is very likely to outlive me, and I'd that she have the greatest survivor benefit possible.
I'm willing to change the approach, but there will have to be a better reason than, "you might get a better return in the market."
Anonymous
07/08/2025 16:53
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
Oh I did not know that about MD. Can you provide a link please?
Made a mistake SS is not taxable. But 401k withdrawls starting at 65 of 40K or less not taxable within certain income limites
Yes, 401k withdrawals are taxed. They were deposited pre-tax originally.
In MD, $40K of the 401k is not taxable if you are over 65.
https://services.marylandcomptroller.gov/taxes/en/maryland-pension-exclusion?id=kb_article_view&sysparm_article=KB0010012
This is so frustrating. I’ve rolled over older 401ks into IRAs and those taxable. What is the logic there?
PP here. I did the same, and now I''m kicking myself. My Financial Advisor didn't mention any of this when I mentioned rolling over an old 401k.
As they say, you have to do your own due diligence, or get a CPA, and even then...
Anonymous
07/08/2025 16:51
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
Oh I did not know that about MD. Can you provide a link please?
Made a mistake SS is not taxable. But 401k withdrawls starting at 65 of 40K or less not taxable within certain income limites
Yes, 401k withdrawals are taxed. They were deposited pre-tax originally.
In MD, $40K of the 401k is not taxable if you are over 65.
https://services.marylandcomptroller.gov/taxes/en/maryland-pension-exclusion?id=kb_article_view&sysparm_article=KB0010012
This is so frustrating. I’ve rolled over older 401ks into IRAs and those taxable. What is the logic there?
Anonymous
07/08/2025 16:33
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:My dad did and ended up dying at 67.
But how long did wife live? My FIL waited till get max and died a year later. His wife is now 84 and is on his SS and because of that she has money.
DP. It made more sense for the previous generation than for ours. DH and I will have equivalent SS amounts. We’ll get each other’s 401ks in the event of death.
My block most of wives are SAHMs married to high earners a few years older. A lot did not work that long. The husbands are not a lot older but usually 2-5 years older. Kinda hard to retire early at 62 when you have a 57 years old wife and two kids in college and and one in HS.
Also my friend in LA the land of second and third marriages some of wives are 10-30 years younger. The mans wife could live 30-40 years past him. Alec Baldwin is 71 and his wife is 41. They are married almost 13 years so she is fully entitled to his SS. Since he worked till max of 70 for benefits. It could be a huge amount. She also gets his 401ks and IRAs as spouse and given her age could be 50-55 years more growth.
Good point, but I suspect Alec Baldwin's family is not exactly banking on his SS to feed themselves..
Anonymous
07/08/2025 15:48
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Anonymous wrote:My dad did and ended up dying at 67.
But how long did wife live? My FIL waited till get max and died a year later. His wife is now 84 and is on his SS and because of that she has money.
DP. It made more sense for the previous generation than for ours. DH and I will have equivalent SS amounts. We’ll get each other’s 401ks in the event of death.
My block most of wives are SAHMs married to high earners a few years older. A lot did not work that long. The husbands are not a lot older but usually 2-5 years older. Kinda hard to retire early at 62 when you have a 57 years old wife and two kids in college and and one in HS.
Also my friend in LA the land of second and third marriages some of wives are 10-30 years younger. The mans wife could live 30-40 years past him. Alec Baldwin is 71 and his wife is 41. They are married almost 13 years so she is fully entitled to his SS. Since he worked till max of 70 for benefits. It could be a huge amount. She also gets his 401ks and IRAs as spouse and given her age could be 50-55 years more growth.
Anonymous
07/08/2025 15:46
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
Oh I did not know that about MD. Can you provide a link please?
Made a mistake SS is not taxable. But 401k withdrawls starting at 65 of 40K or less not taxable within certain income limites
Yes, 401k withdrawals are taxed. They were deposited pre-tax originally.
In MD, $40K of the 401k is not taxable if you are over 65.
https://services.marylandcomptroller.gov/taxes/en/maryland-pension-exclusion?id=kb_article_view&sysparm_article=KB0010012
Anonymous
07/08/2025 15:43
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Now with the passage of BBB does it make sense to start social security at 62? Not there yet but maybe better to get a few years of something if it’s going to go bankrupt sooner now.
Assuming y'all are not poor and SS at FRA is similar to both spouses, the older spouse should start taking as soon as the younger spouse stops working and the younger spouse should take it at 70.
hm... I used that calculator, and it said the opposite -- older spouse take at 70; younger at 62. DH and I are six years apart.
Anonymous
07/08/2025 15:43
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:Anonymous wrote:In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
Oh I did not know that about MD. Can you provide a link please?
Made a mistake SS is not taxable. But 401k withdrawls starting at 65 of 40K or less not taxable within certain income limites
Yes, 401k withdrawals are taxed. They were deposited pre-tax originally.
Anonymous
07/08/2025 15:41
Subject: Taking social security at 62?
Anonymous wrote:Anonymous wrote:In Maryland I will throw it out SS is fully taxable if under 65 at state level. 65 and older first 40K exempt from taxes. In Virginia and DC SS is not taxable
So in Maryland at least taking SS early has an added penalty of state taxes
Oh I did not know that about MD. Can you provide a link please?
Made a mistake SS is not taxable. But 401k withdrawls starting at 65 of 40K or less not taxable within certain income limites