The Social Security Administration (SSA) is shrouded within a cloak of secrecy to many Americans. While much of that is warranted, given the ever-changing programs it heads and the political and economic lightning rod it tends to be, many components of Social Security are relatively straightforward and vital to understand. To that point, there are a handful of little-known facts about Social Security you need to know as you continue down your path towards retirement.
Survivor Benefits Aren’t Just For Spouses
Although the surviving spouse is by far the most common beneficiary of survivor benefits when someone passes away, they are by no means the only people eligible to receive survivor benefits. As surprising as it might sound, ex-spouses are even eligible to receive survivor benefits under particular circumstances.
Aside from the surviving spouse, however, minor children are the most common beneficiaries of Social Security benefits. When a minor is receiving survivor benefits, the Social Security Administration typically requires a custodian to administer the account, usually in the form of a UTMA or UGMA account, depending on the state the minor lives in.
Benefits for the Self-Employed
For those that don’t have the luxury of seeing a FICA tax line item on a paystub, rest assured that self-employment doesn’t eliminate your eligibility for Social Security benefits. In fact, if you’re self-employed, odds are you have been paying into the Social Security system this entire time without even knowing it.
Although the name can be misleading, the dreaded self-employment tax found on your Tax Form 1040 isn’t a punitive measure from the IRS to dissuade you from running your own business but instead is your payment towards your own benefits. Simply put, you’re amassing the same credits you would have been through a more typical job, just in a different manner.
Applying For Social Security Disability
Applying for Social Security Disability benefits is never a given as they have strict standards. In fact, 7 out of 10 applicants are initially rejected for many different reasons. Therefore, don’t be surprised if a few minor skirmishes are required to pursue benefits. Unfortunately, applicants are forced to hire help to fight the Social Security Administration for their disability benefits. A number of law firms throughout the country specialize in the service.
Don’t Shred Your Statements Before Pouring Over Them
Lastly, most Americans don’t pay much attention to their annual Social Security statements until it’s too late. You can only access them online through your Social Security portal, so buck the trend and start reading through them. They are full of valuable information and can have errors on them. Whether you’re are just a year from retirement or a decade or more, it’s never too early or late to see where your benefits stand.
Have you reviewed your Social Security statements or need help with your financial plan? We’re here to help! Simply click here or call (763) 445-2772 to schedule a complimentary consultation today!
