Can I still coordinate SS benefits with disabled adult child while working past FRA?
Just trying to figure out my options for the next few years with Social Security. I'm about 4 years away from my full retirement age (67), and I'm weighing whether to keep working longer or claim at FRA. My son (32) receives SSDI as a disabled adult child - he gets about 50% of my wife's FRA benefit plus some SSI to supplement. I've calculated that if I work an additional 3 years beyond my FRA, I could increase my eventual survivor benefit by approximately $1,100 per month. Two questions bothering me: 1) I heard Congress eliminated some kind of strategy where you could trigger spousal benefits while still working - is that true? 2) With all this talk about making SS benefits tax-free, I'm wondering if I should just stop at FRA instead of pushing for the higher amount, since the tax bracket jump might eat up the gains. Really appreciate any insights from folks who've navigated this situation with disabled adult children and retirement timing. The SSA calculators don't seem to factor in all these complications!
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Zoe Kyriakidou
Yes, the "file and suspend" strategy was eliminated back in 2015 with the Bipartisan Budget Act. You used to be able to file for benefits at FRA, immediately suspend them (letting them grow), while your spouse could still claim spousal benefits on your record. That loophole is closed now. As for tax-free SS benefits, I wouldn't make decisions based on campaign promises. Been hearing that one for decades! But if your disabled son is receiving benefits as a DAC on your wife's record, make sure you understand how your decisions might impact his benefits. The family maximum applies.
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AstroAce
•Thanks for clarifying about the file and suspend strategy. You're probably right about not counting on tax changes. Do you know how working past FRA might affect the family maximum calculation? I'm worried about accidentally reducing my son's benefits by increasing mine.
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Jamal Brown
i was in same boat last yr. disabled daughter gets benefits. the thing nobody tells u is that working longer only helps if ur the higher earner in marriage. is ur benefit bigger than ur wifes? thats the key question
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AstroAce
•Yes, my benefit is about 30% higher than my wife's. I've been the primary earner throughout our marriage while she worked part-time for many years. So it sounds like continuing to work might make sense in our case?
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Mei Zhang
This is a complex scenario that requires careful planning. Here's what you need to understand: 1. The "file and restrict" or "restricted application" strategy was eliminated for anyone born after January 1, 1954. So yes, that option is no longer available. 2. If you're the higher earner (which you said you are), working longer will increase both your retirement benefit AND the potential survivor benefit for your wife if you predecease her. 3. For your disabled adult child (DAC), the calculation gets tricky. If he's currently receiving benefits on your wife's record, his benefit amount is subject to the family maximum formula (FMax). Adding another beneficiary to that same record (like if you took spousal benefits on your wife's record) could reduce his portion due to the family maximum. 4. If you're concerned about taxation, remember that at most 85% of Social Security benefits are taxable, and that's only for higher-income earners. Since your benefit is significantly higher than your wife's, working longer will increase your eventual benefit, which will become your disabled child's benefit if both you and your wife pass away. This provides long-term security for your child.
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AstroAce
•This is extremely helpful, thank you! I hadn't even thought about what happens to my son's benefits if both my wife and I are gone. That's actually a major consideration for us. So it sounds like working longer not only increases my benefit and my wife's potential survivor benefit, but also provides a higher safety net for our son long-term. That might outweigh the tax considerations.
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Liam McConnell
The government ALWAYS finds ways to tax us more!!!! I wouldn't hold my breath waiting for tax-free SS benefits. They've been promising that for YEARS and nothing ever changes! Just another empty promise to get votes.
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Jamal Brown
•ur right about that! my neighbor waited 2 extra yrs to claim thinking the tax rules would change. big mistake! ended up with less $ overall
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Amara Oluwaseyi
Speaking from experience, the most frustrating part of this whole process is trying to get accurate information from SSA about how all these different benefits interact! I called SSA five times about my disabled daughter's benefits and got five different answers. I finally got through to someone knowledgeable after using Claimyr (claimyr.com). They have this service where they'll wait on hold with SSA for you and call you when an agent is on the line. Saved me hours of frustration. Their video demo (https://youtu.be/Z-BRbJw3puU) shows how it works. The rep I eventually spoke to was able to run calculations showing exactly how my continuing to work would affect my disabled daughter's benefits - gave me the peace of mind to make a decision.
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AstroAce
•That's exactly what I'm dealing with now - inconsistent answers! I've called twice and got completely different explanations about how the family maximum works. I'll check out that service - at this point, I just need to speak with someone who really understands these complex situations.
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CosmicCaptain
Has anyone had their disabled child's SSI reduced when they claimed retirement benefits? My cousin said his son lost some SSI when he started taking his retirement...
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Mei Zhang
•Yes, this often happens and is by design. SSI is means-tested, so when another source of income becomes available to the disabled individual (like higher SSDI payments resulting from a parent claiming benefits), the SSI is reduced accordingly. Generally, for every dollar increase in SSDI, SSI decreases by a dollar (minus some small exclusions). This is called the offset rule.
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Giovanni Rossi
I'm not totally sure on this, but I think there's still a way to get spousal benefits while letting your own grow??? My sister-in-law did something like this just last year. You might want to ask specifically about that at your local SSA office.
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Mei Zhang
•With respect, this is incorrect. The restricted application strategy (claiming spousal while letting your own grow) is only available to people born before January 2, 1954. For everyone born after that date, when you file for any benefit, you are deemed to be filing for all benefits you're eligible for, and you'll receive whichever is higher. Your sister-in-law was likely born before that cutoff date, which is why she was able to use that strategy.
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AstroAce
Update: I wanted to thank everyone for their advice. I scheduled a meeting with a financial advisor who specializes in Social Security planning for families with disabled dependents. Based on our discussion and your comments, I'm leaning toward working 2 more years past my FRA. The long-term security for my son is the deciding factor - knowing that he'll have a higher benefit available throughout his lifetime if something happens to both my wife and me. The potential tax changes would be nice, but as many of you pointed out, that's not something to bank on.
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Amara Oluwaseyi
•That sounds like a wise decision! Getting professional advice specific to your situation is always smart. One other thing to consider - if you're still working, you might look into an ABLE account for your son if you haven't already. It allows disabled individuals to save money (up to $16,000/year) without impacting their SSI eligibility. Could be another way to provide security.
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