April is a great time to check your first quarter Social Security benefits.
Think tank proposes capping Social Security benefits at $100,000
A Washington think tank has proposed capping annual Social Security benefits for married couples at $100,000 as a way to reduce a looming deficit in retirement trust funds.
Just as spring is a great time to air out your home and remove cobwebs, it’s also a good time to check your Social Security benefits.
It’s nice to believe that the Social Security Administration never does anything wrong or that details are never leaked, but no one can make such a claim.
If you are retired or nearing retirement If you’re retiring, take these steps in April to avoid spending the rest of the year wondering if you missed important Social Security details..
1. Check your Medicare premium deduction
Check your Social Security statement to make sure the correct premiums are being deducted from your Medicare Part B (or Part D, if you don’t pay directly to your insurance company) Social Security benefits. In the meantime, make sure your Income-Related Monthly Adjustment Amount (IRMAA) is accurate and that you haven’t been overcharged due to outdated income information.
If you are paying IRMAA, you must pay based on your tax return from two years ago. If there’s been a major change since then, such as retirement, divorce, death of a spouse, or job loss, your IRMAA may be reduced or eliminated.
2. Please update mysocial security page
Log in to the SSA site and mySocial security page. Please ensure all information is correct, including your current contact list and direct deposit information.
3. Check COLA adjustment.
Review the benefits you have received so far this year to ensure that the cost of living adjustment (COLA) has been correctly applied to your benefits.
4. Let’s look at taxes
Tax season is the best time to determine whether you need to adjust the tax withheld from your benefits for the following year. If you want to change your voluntary withholding, use Form W-4V. The last thing you want is to fall behind on your taxes after you retire.
5. Confirm beneficiaries
Check all your financial accounts to make sure the beneficiary is the person you want. If a beneficiary dies, you will need to add another beneficiary. If you recently divorced, you can remove your ex-spouse as a beneficiary.
6. Reevaluate your budget
Use April as a quarterly checkpoint to determine whether your Social Security benefits meet your financial needs. If not, it may be time to adjust your retirement withdrawal strategy.
If you think April is a bad month because you’re busy with tax returns, consider the following: There is a lot of overlap between the documents required to complete a tax return and those related to Social Security payments. Handling both tasks at once can potentially save you time.
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