Cassidy Law Firm

01/11/2024

When signing up for Medicare- beware of Medicaid Advantage plans....

01/09/2024

Are you regretting taking a lower social security benefit before your full retirement age? It's rare in life--but you can have a do-over--read article below on reseting your your social security to get a higher monthly benefit.

INCREASE YOUR SOCIAL SECURITY BENEFITS POST-FILING
Maximizing Social Security benefits offers various strategies, and a straightforward approach involves delaying the filing for benefits. The longer the delay, the greater the monthly payment, peaking at age 70. Surprisingly, even if benefits have already been filed, there are scenarios where individuals can still capitalize on a substantial annual increase—up to 8 percent.
Yes, you can opt for a "do-over" after choosing to receive Social Security benefits, seeking a higher monthly payout. There are two key strategies outlined below, applicable in specific situations.
Why consider a "do-over" on Social Security? Several reasons include:
• If benefits were claimed before reaching full retirement age, and subsequent earnings exceeded a specified level, Social Security imposes penalties for earned income.
• In the event of a new income source, like a job or inheritance, you might choose to defer your Social Security check, recognizing it's not immediately needed.
• Opting for a lower income now in exchange for a more substantial payout later becomes a strategic choice, especially if anticipating a longer lifespan.

Regardless of the motive, two circumstances allow for a "do-over."
1. Suspend Your Social Security Benefit:
• Conditions for suspension:
• Benefits were claimed before full retirement age.
• Full retirement age has been reached, but not yet 70.
• By meeting these conditions, you can suspend benefits, earning delayed retirement credits monthly. This results in a 0.666 percent increase per month, equivalent to an 8 percent annual rate. This increase occurs alongside any cost-of-living adjustments (COLA). The potential for a significant improvement in payout remains viable even in later stages.
• Benefits stop the month following the suspension request, with the option to restart them at any time with the adjusted payout. At age 70, benefits automatically resume at the current payout amount.
• Importantly, suspending benefits does not mandate repayment of previously received payouts. While it affects those claiming benefits on your record (e.g., spouse or minor child), ex-spouses claiming benefits remain unaffected.
2. Withdraw Your Social Security Benefit:
• Conditions for withdrawal:
• Benefits began less than 12 months ago.
• No previous withdrawal of benefits has been filed.
• If meeting these conditions, you can withdraw benefits, essentially reverting to a state as if Social Security had never been filed. The potential benefit increases up to 8 percent annually after reaching full retirement age.
• Withdrawals are possible at any age, provided the stipulated conditions are met. Repayment, however, includes returning all received funds, encompassing Social Security payouts and related program payments.
• Withdrawal requests must be in writing, with a 60-day window to reverse the decision post-approval by Social Security.
Key Differentiators:
1. When You Can File:
• Suspension is available post-early filing, above full retirement age but below 70. Withdrawal is feasible within the initial 12 months of receiving benefits, without prior withdrawal filings.
2. Repayment of Benefits Taken:
• Suspension does not necessitate repaying prior Social Security funds. Withdrawal mandates full repayment of received benefits.

It's crucial to acknowledge that turning off Social Security payments, particularly if Medicare premiums are deducted, requires self-payment of Medicare premiums.
In conclusion, opting for a "do-over" on Social Security can be a strategic move in specific circumstances, potentially resulting in a higher monthly payout.

Michele Cassidy J.D., LLM

11/07/2023

Do you have a loved one at home suffering from cognitive impairment? The Medicaid Transition and Diversion Program can help you keep them out of a nursing home

An important Medicaid program called the Nursing Home Transition and Diversion program may offer you an alternative to living in a nursing home. If you are ...

02/20/2023

GREAT NEWS--NOW YOUR DISABLED LOVED ONE ON SSI CAN HAVE MORE THAN $2000 IN HIS/HER/THEIR NAME

Early in 2014, Congress passed legislation creating special accounts for persons with disabilities known as the “Achieving a Better Life Experience”– who thinks of these names? (ABLE) Act; To summarize, the Act provides that a person who became disabled prior to age 26 may establish an account, similar to a special needs trust, to accumulate funds to pay for qualified disability expenses.

• Provided the account is less than $100,000, it will not count as a resource for Supplemental Security Income purposes.
• Income accumulated within the ABLE account is not subject to income tax as earned.
• Managed by the person with disabilities rather than a trustee, if funds are used for “qualified disability expenses,” there is never any income tax.
• Any funds remaining at the death of the beneficiary are to be used to pay back the State for any benefits that the beneficiary has received, although funds may also be rolled into another ABLE account for a family member who is also disabled.

The ABLE Act law is tax legislation, similar to the Act creating Section 529 education accounts; Like Section 529 plan accounts, ABLE requires implementation by each individual State. A number of States are expected to do so beginning January 1, 2016.

There can be only one ABLE Act account for each person, although more than one person may make deposits into that account. However, deposits from all sources may not exceed the annual gift tax exclusion, presently $17,000. Contributions must be made in cash or cash equivalents. If the account balance grows to more than $100,000, SSI benefit payments are suspended, but the person does not lose any other benefits which rely on SSI status. Once the account level dips to $100,000, SSI benefits are restored.

FOR MORE INFORMATION ABOUT SETTING UP AN ABLE ACCOUNT FOR YOR LOVED ONE, CALL CASSIDY LAW FIRM.