Retirement is a stage of life to look forward to. When planned for, it can be a time to sit back and enjoy a wonderful time in your life. If not planned for in the right way, it can mean working way past what you wanted to maintain your desired lifestyle. Your social security benefits and knowing when to claim them can be the foundation of your retirement future. Knowing a few tips can help you to plan for the best time to start your retirement. When you plan with an Overland Park accounting firm like Pro 31 (located in Louisburg), you will have experts at your fingertips to make sure you can adequately plan. Here are a few tips from the Kiplinger to better understand your Social Security benefits.
Know What your Full Retirement Age Is with the help of an Overland Park Accountant.
You will want to know your full retirement age. This is based on the criteria below:
If you are born between 1943-1954, your full retirement age is 66; if you are born between 1955-1959, it is 67; and if you were born after 1960, your current full retirement age is 67.
According to an Overland Park CPA, you will still have to pay taxes on your benefits
Making money is a tricky situation. If you make too much, you can be taxed up to half of what you are making once you are past retirement age. If you are confused by how much you are being taxed, be sure to talk to your tax accountant in Overland Park so that they can provide a more detailed explanation.
Who Can Collect:
- Your spouse can receive social security benefits, up to 50%, which would be beneficial if your spouse’s social security is less than yours. It is important to note that this is only possible when the spouse receiving their partner’s social security has reached their full age based on the requirements listed above. There are many other factors to consider to this point, which is why working with CPA in Overland Park, like Pro 31 in Louisburg, is a helpful resource when considering this option.
- Your children can collect your social security benefits in some cases. If your children are under 18, or you have disabled children older than 18, you can receive 50% of what your benefits would be. In the instance that your spouse should pass away, you as the spouse and a disabled child can still receive part, if not all the benefits of your social security.
- It is uncommon knowledge that as an ex-spouse, you can collect social security benefits of your ex-spouse if you were married for ten years or longer with up to 50% of the benefit. According to CPAs in Overland Park, it is still important to wait until the age at which you can qualify for your full benefit.
Pro 31, is a trusted Overland Park accounting firm located just 20 miles south in Louisburg, KS. Our firm proudly services numerous clients throughout the Kansas City metro area. We have a wealth of information that can help you decide not only who is eligible for benefits but also when is the best time to start drawing on these benefits.
Give us a call at (913) 837-3131 or visit our website to sign up for a free quote on your individual taxes or planning for your retirement.