Ask Liz Weston

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Social Security

Q&A: Eyeing a second divorce and the first ex’s Social Security

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Dear Liz: I was married for 12 years and have remarried. If I divorce again, am I eligible for my first husband’s Social Security?

Answer: People who were married for at least 10 years and who are currently unmarried may be eligible for divorced spousal benefits based on their ex’s work record. So if you divorce, you may be eligible for up to half of your first husband’s benefit at his full retirement age — assuming that this divorced spousal benefit is more than your own retirement benefit.

Applying before your own full retirement age means your divorced spousal benefit would be reduced. The benefit also would be subject to the earnings test, which reduces your benefit by $1 for every $2 you earn over a certain amount, which in 2024 is $22,320.

Q&A: An inheritance sounds great, but what will it mean for my free meds?

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Dear Liz: I live on Social Security alone, which puts me at the poverty level. The state pays for medical and dental premiums, so I have no copay for doctor visits or prescriptions. I was just notified that I was left $175,000. If this shows up in my bank account, I will lose all the medical benefits I’m receiving. My medications total $80,000 a year. I’d like to at least have some access to the funds to make some home repairs that I’ve needed for 20 years and to prepay my future funeral expenses.

Answer: Inheritances can wreak havoc with government benefits such as Medicaid (called Medi-Cal in California), which have strict income and asset limits. But you may have options to put the money in trust, says Jennifer Sawday, an estate planning attorney in Long Beach. Consult a special needs trust planning attorney for details.

Q&A: Old inherited IRA is safe from “drain it in 10 years” requirement

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Dear Liz: You have written that non-spouse beneficiaries are now required to drain their inherited IRAs within 10 years. Is this requirement retroactive?

I inherited an IRA from my mother in 2015. I have been taking out the minimum required each year. If I must drain the account within 10 years, will the increase in yearly income affect my Social Security benefits?

Answer: The 10-year requirement applies only to accounts inherited from people who died after Dec. 31, 2019.

IRA distributions don’t affect Social Security benefits, but could affect Medicare premiums if the withdrawal is large enough. Taxable income above certain limits triggers a Medicare surcharge known as an income-related monthly adjustment amount, or IRMAA.

Q&A: The GPO can wipe out survivor benefits

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Dear Liz: My husband passed away 10 months ago. I applied for widow benefits.

The Social Security Administration sent me a letter that said they cannot pay because my Social Security benefit would equal two-thirds of the amount of my pension. Please help me with this.

Answer: This is known as the government pension offset, and it applies to people who receive a pension from a job that didn’t pay into Social Security. Any survivor or spousal benefits you might receive are reduced by two-thirds of the pension amount. In your case, your entire benefit was offset.

People are understandably upset to learn they don’t qualify for survivor or spousal benefits through Social Security. But since your pension is large enough to offset any benefit, you’re financially better off with the pension than without it.

For more information, see the government pension offset pamphlet, available online at SSA.gov/pubs or by calling the Social Security Administration toll-free at (800) 772-1213.

Q&A: A remarried military widow navigates Social Security survivor benefits

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Dear Liz: My wife of 15 years is now 58 and I am 62. She is a military widow who was married for 17 years before her previous husband’s death. I believe she is ineligible to collect on her deceased spouse’s Social Security record because she married me. Is that right? Instead, can she collect her much smaller benefit starting at 62? I plan on waiting to apply until age 70. Can she switch from her reduced amount to half of mine at 67?

Answer: You’re correct that your marriage would prevent your wife from getting survivor benefits based on a previous spouse’s earnings record. Only people who marry after they turn 60 can get survivor benefits from a deceased spouse while married to a live one. She also would be eligible for survivor benefits from her previous husband if your current marriage ends.

Survivor benefits can be claimed as early as age 60, or at 50 if the survivor is disabled, or at any age if the survivor cares for the deceased’s child who is under 16 or has a disability. Retirement and spousal benefits, meanwhile, can start as early as 62.

Such an early start, however, means accepting a substantial reduction in her checks. Her benefits also will be subject to the earnings test, which reduces benefits by $1 for every $2 earned over a certain amount, which in 2024 is $22,320. The earnings test disappears at full retirement age, which for her is 67.

Your wife can’t claim a spousal benefit until you file for your own benefit, but she’ll be able to switch from hers once you apply.

Since there are several complicating factors to this situation, consider using a paid service such as Maximize My Social Security or Social Security Solutions to investigate the best claiming strategy.

Q&A: What’s ‘substantial’ in the eyes of Uncle Sam?

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Dear Liz: I am retired and subject to both the windfall elimination provision and the government pension offset. In a recent column you indicated someone wouldn’t be subject to the windfall elimination provision if they had 30 years of “substantial earnings” in a job where Social Security tax was withheld. I contributed to Social Security for 32 years. How does one determine if these annual earnings are “substantial”?

Answer: Social Security has a two-page pamphlet about the windfall elimination provision that you can find online or request from the agency by calling (800) 772-1213. The pamphlet features a chart of the earnings required each year to be considered substantial. In 1992, for example, the amount was $10,350. In 2024, it’s $31,275. If you create a My Social Security online account — and you should — you can compare the amounts to what you earned during the years you contributed to the system.

Social Security has already done this and concluded you’re subject to the provision, which reduces but doesn’t eliminate your benefit because of the pension you earned from a job that didn’t pay into Social Security. If your Social Security record is inaccurate, though, you can contact the agency to correct it. You’ll probably need some kind of proof, such as pay stubs or W2s, so hopefully you’ve kept good records over the years.