The Retirement and IRA Show Social Security, Spendthrift Trust, Living Trust: Q&A #2613
10 snips
Mar 28, 2026 Listeners ask about claiming Social Security while still working and how earnings can reduce benefits. They explore whether a nonworking spouse can receive benefits and Medicare access. A caller asks how to deliver an inheritance over 20 years and whether a trust buying an annuity can do that. A family shares how a revocable living trust solved power-of-attorney problems across states.
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Delay Claiming If Yearly Earnings Exceed FRA-Year Limit
- Avoid claiming Social Security early if you expect high 2026 earnings because the earnings test can withhold full monthly benefits until the overage is recovered.
- With $100,000 projected earnings and a 2026 FRA-year limit of $65,160, expected withholding could be about $11,600 and you may receive no payments for several months until that amount is satisfied.
Earnings Test Uses Annual Withholding Not Monthly Reductions
- The Social Security earnings test in the year you reach full retirement age is applied yearly and is less punitive at $1 withheld per $3 over the limit, but SSA withholds whole payments until the offset is met.
- That means filing months before FRA can cause several months of zero payments rather than reduced monthly checks, then a recalculation at FRA restores benefits retroactively.
Nonworking Spouse Can Still Get Spousal or Survivor Benefits
- A spouse who never worked or lacks 40 quarters can still receive spousal or survivor Social Security benefits if married long enough to a qualified worker.
- Spousal benefit generally requires 12 months marriage and claimant age 62+, while survivor benefits typically require nine months marriage and survivor age 60 (50 if disabled).