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The most frequently asked tax questions, answered by our network of licensed accountants.
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I'm over 71 years old and still work. Can I contribute to a Roth IRA ?
Asked Saturday, September 09, 2000 by an anonymous userCPA Answer:
Yes. Roth IRA contributions can be made at any age providing you have earned income. However, they are subject to various income limitations.
IRA - over 70 1/2 years old
Asked Saturday, September 09, 2000 by an anonymous userCPA Answer:
No. You cannot contribute to a traditional IRA once you reach 70 1/2.
The year in which you turn 70 1/2 is the tax year you cannot contribute to an IRA. For example if you turn 70 1/2 in the current year, you can still make a contribution by April 15, of the following year for the current year but cannot make any contributions for a traditional IRA related to the following tax year.
IRA - over 70 1/2 years old Date of distribution
Asked Saturday, September 09, 2000 by an anonymous userCPA Answer:
The required beginning date for distributions is usually April 1st of the year following the year you turned 70 1/2.
Social Security - Earliest age to collect
Asked Thursday, September 07, 2000 by an anonymous userCPA Answer:
You can begin to collect Social Security when you reach age 62, providing you qualify. The amount you collect will be at a reduced rate compared to what you would have collected if you waited to the full retirement age of 65 through 67 depending on your date of birth.
Social Security - Survivor Information
Asked Thursday, September 07, 2000 by an anonymous userCPA Answer:
When a person dies, certain members of a family may be eligible for benefits.
Your spouse, age 60 or older(50 or older if disabled, or any age if caring for your children under age 16) qualifies for benefits.
Also your children (if unmarried and under age 18, still in school and under age 19, or adult children disabled before age 22) qualify for Social Security benefits if you were to die.
Your spouse, age 60 or older(50 or older if disabled, or any age if caring for your children under age 16) qualifies for benefits.
Also your children (if unmarried and under age 18, still in school and under age 19, or adult children disabled before age 22) qualify for Social Security benefits if you were to die.
Social Security - Collect and still work between ages 62 and 66 years old
Asked Thursday, September 07, 2000 by an anonymous userCPA Answer:
You can work while you receive Social Security retirement (or survivors) benefits. While you are working, your earnings will reduce your benefit amount only until you reach your Full Retirement Age.
Social Security uses a formula to determine how much your benefit must be reduced:
If you are under full retirement age (62-66) for the entire year, SS deducts $1 from your benefit payments for every $2 you earn above the annual limit.
People who turn 66 in 2013 can earn up to $40,080, and then $1 of benefits will be withheld for every $3 earned above the limit.
For 2012, that limit is $14,640 ($15,120 in 2013). In the year you reach full retirement age, SS deducts $1 in benefits for every $3 you earn above a different limit, but SS only count earnings before the month you reach your full retirement age.
If you will reach full retirement age in 2012, the limit on your earnings for the months before full retirement age is $38,880 ($40,080 in 2013).
Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.
Social Security uses a formula to determine how much your benefit must be reduced:
If you are under full retirement age (62-66) for the entire year, SS deducts $1 from your benefit payments for every $2 you earn above the annual limit.
People who turn 66 in 2013 can earn up to $40,080, and then $1 of benefits will be withheld for every $3 earned above the limit.
For 2012, that limit is $14,640 ($15,120 in 2013). In the year you reach full retirement age, SS deducts $1 in benefits for every $3 you earn above a different limit, but SS only count earnings before the month you reach your full retirement age.
If you will reach full retirement age in 2012, the limit on your earnings for the months before full retirement age is $38,880 ($40,080 in 2013).
Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.
Social Security - Disability Benefits
Asked Thursday, September 07, 2000 by an anonymous userCPA Answer:
You can collect disability benefits from Social Security if you become severely disabled before full retirement age after six months providing you have: 1.) enough Social Security credits and 2.)a physical or mental impairment that's expected to prevent you from doing substantial work for a year or more, or a condition that's expected to result in death.
Social Security - Ex-spouse claim on Deceased taxpayer
Asked Thursday, September 07, 2000 by an anonymous userCPA Answer:
If you are divorced, and were married for 10 years or more you could be eligible for a widow's or widower's benefit on the record of your deceased ex-spouse.
Social Security - Getting Records
Asked Thursday, September 07, 2000 by an anonymous userCPA Answer:
In light of the current budget situation, SS has suspended issuing Social Security Statements.
To request a detailed statement of your employment history, Go to the Social Security Administration website at http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/72 and click on the Request for Social Security Earnings Information and mail it to the address on page two of the form.
The Social Security Administration says to “Please allow four months from the date you submit the form for a response.”
To request a detailed statement of your employment history, Go to the Social Security Administration website at http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/72 and click on the Request for Social Security Earnings Information and mail it to the address on page two of the form.
The Social Security Administration says to “Please allow four months from the date you submit the form for a response.”
Social Security - Born in 1960 or after Eligibility
Asked Thursday, September 07, 2000 by an anonymous userCPA Answer:
If you were born after 1959, you will have to wait until you are 67 years old before you can collect your full benefits. This current rule may not stay the same for the next 30 years. You should start planning for your retirement without relying on Social Security as soon as possible.