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SSDI before full retirement age

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Question:

My husband received SSDI paid in 2018 with back pay for 2017 due to his pancreatic cancer. He returned to work this year for a few months  Social Security is paying him through this period on a Social Security trial period for work.  He is now off work again due to a hip replacement.  Social Security stated that he would be automatically converted to "regular" Social Security this December at his full retirement age. This is still within the 9 month trial work period. Originally he planned to file for social security at age 70.  When I go to estimate benefits on the my social security site, there is no projection available. 

Question: 1. Can he suspend Social Security in December? Is there a special process for this since they are the ones converting SSDI to SS? I know he will be over the Social Security income limit for 2017 and is on short term disability from his employer currently.  It is likely he will not return to full time work as he cannot fulfill the physical requirements and there is no part time option to being a truck driver.

If he does suspend his Social Security since he never elected it, will he be able to get the increases if he does not take it until age 70?

I am going to go over choices about whether to take SS now or not with our financial planner but I cannot imagine he knows the rules surrounding this unusual situation. They make it so complex.  I have learned so much from your show and materials. Since most Americans will get Social Security, I cannot believe they do not make the rules easy to understand.

Elaine

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Here's what I think. At his full retirement age his SSDI benefit will convert to a regular benefit. This means that the programs that relate to SSDI, such as the 9 month trial work period, do not apply. There a paper that I discovered a while back from Cornell that discusses this transition in much easier-to-understand terms than ever presented by the SSA. Once his benefit transitions to a normal retirement benefit the voluntary suspension will be available. For every month his retirement benefit is suspended, it will increase by 2/3 of 1% (.6667%). https://secure.ssa.gov/poms.nsf/lnx/0202409110  

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Devin, 

Thank you for your reply.  I read the paper. It seemed dated are there any changes  to that provision in the law since that time? 

One of the resources Get what's yours advises to withdraw instead of suspend benefits for the Disabled person who is about to be converted to regular Social Security.

Is the only benefit of withdraw as opposed to suspend to be able to apply for spousal benefits and let the disabled person's SS continue to grow?

Disability is not taxed.  It seems ludicrous from a consumer standpoint that there is not a way to stay on Disability once you are granted disability no matter whether you have attained full FRA or not.  Are you aware of any way to do this? 

I have tried finding the answers about withdraw vs suspend on the social security website, the citations I found did not seem relevant. 

Thank you so much for time and expertise

Elaine 

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I'm not which version of the book you have, but everything changed in 2015/2016. 

1) To my knowledge, Social Security disability payments and retirement benefits are equally taxable. The extent to which these benefits are taxed is determined by a formula known as provisional income. 

2) If you "withdraw" from SSDI, you'll most likely have to pay back all the benefits you've received. A "suspension" is what you'd want to do after these benefits convert to retirement benefits. This would allow your benefits to increase with the delayed retirement credits, but all benefits being paid from that individuals work record would stop. https://www.ssa.gov/planners/retire/withdrawal.html . 

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Devin,

Thank you. I thought ssdi was not taxable. 

I was unaware that if he withdraws Social Security that he might be liable to pay back all SSDI payments as well as regular Social security benefits.

 

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