PW_0206

FEBRUARY 6, 2020
WEEKLYNEWS.NET - 978-532-5880 7
Social Security for
minor children, part one
If you have minor children
at home, Social Security benefits
may be available to them.
Know these rules and get maximum
benefits for your family.
It is not so unusual today
for a person eligible for Social
Security retirement benefits
to have young children. Once
the parent files for benefits, a
minor child may also qualify
for Social Security dependent
benefits. The child can be a natural
child, an adopted child, or
a stepchild.
Each child may receive 50%
of the parent’s primary insurance
amount (PIA) up to the
family maximum. The benefit
may continue until the child is
18, or 19 if still in high school.
Example: Don is age 66 and
has a PIA of $2,400. He has
one child, Diane, who is 10.
Once Don files for his benefit,
Diane may receive a dependent
benefit of 50% of Don’s PIA, or
$1,200. This benefit may continue
until Diane turns 18.
Note that it will be necessary
for the parent to file for his own
benefit in order for the child
to receive benefits. Because it
is often recommended that the
higher-earning spouse delay
benefits to age 70 to maximize
both the retirement benefit and
the survivor benefit for the surviving
spouse, this creates a
conflict:
• Do you file early and take a
reduced benefit so you can start
benefits for the child?
• Or do you file at the optimal
time for your own lifetime
benefit even if it means missing
out on a few years of children’s
benefits?
We have analyzed this and
concluded that the optimal
strategy is to delay benefits.
Filing at 62 would cause the
primary earner’s benefit to be
reduced to such an extent that
the extra years of children’s
benefits would not make up for
the loss in lifetime benefits for
the worker and his surviving
spouse. Remember, when one
spouse dies, the couple’s lower
benefit will stop, and the higher
of the two benefits will continue.
The surviving spouse will
need a high survivor benefit
to maintain their standard of
living.
If your child is receiving a
benefit based on your record,
your spouse may be able to
receive a benefit for having a
child in care. The child-in-care
benefit is generally 50% of your
PIA until the child turns 16.
There are two issues that
could cause benefits to be reduced.
One is the earnings
test. The other is the family
maximum.
Most parents of minor children
must continue to work.
(There is college to save for,
after all.) If a parent files for
his benefit before full retirement
age, some or all of his
benefit – and all other benefits
paid on his record – may
be withheld for the earnings
test. Filing at full retirement
age or later avoids this mandatory
withholding of benefits.
Furthermore, any childin-care
benefits paid to the
spouse may be withheld if
the spouse works. Not much
can be done about this: If the
spouse is under full retirement
age and works, some or
all of the child-in-care benefit
may be withheld. However,
depending on how the family
maximum comes into play, it
may behoove the spouse to
forego the child-in-care benefit
to make more benefits
available to the children.
There is a maximum amount
of dependent benefits that
can be paid on each person’s
earnings record. This is called
the maximum family benefit
(MFB) and it is shown on your
Social Security statement. It’s
generally about 150% to 180%
of your PIA. Here’s how it
works: Your PIA is subtracted
from the MFB to determine the
amount of benefits that can be
paid to family members.
In Part Two, I will go over
some specific situations you
might encounter when you have
minor children drawing social
security benefits.
Mark Singer, CFP® lives
in Swampscott and has been
in the financial industry for
over three decades. If you have
any questions contact him at
mark@55retire.com. To learn
how to maximize your Social
Security benefits and enjoy your
retirement journey, subscribe
to The Retirement Authority
YouTube channel at youtube.
com/55Retire. The content was
developed in conjunction with
Elaine Floyd, CFP®.
Wine about winter
comedy night is February 7
City wasting no time
on Welch work
The city is wasting no time
seeking a project manager to
oversee additions and renovations
to Welch Elementary School.
Advertisements seeking
project manager services are
posted and requesting applicants
to respond to the city Office of the
Purchasing Agent by Feb. 13, 4
p.m. Details on the school project
can be obtained by sending an
electronic mail request to purchasing@peabody-ma.gov
Peabody
secured
Massachusetts School Building
Authority (MSBA) approval
last October to begin planning
to renovate or replace the Welch.
The 50-year-old school needs
its heating system and windows
replaced and other upgrade
work designed to make
the school compatible with 21st
century academics.
The City Council last
September approved $1.2 million
to hire an architect and project
manager to complete the study
of the school and examine pros
and cons related to renovating the
Welch or building a new school.
Under the MSBA guidelines,
the state would reimburse the
city as much as 55 percent for
construction costs.
Planning for the Welch work
John C. Olimpio CPA
Certified Public Accountant • Attorney at Law
161 South Main Street Suite 307 • Middleton, MA 01949
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• Estate Planning• Wills and Trust Preparation•
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is moving forward less than two
months after the MSBA rejected
two other local school building
projects — Peabody High and
the Center School.
City officials responded to
the mid December rejection
by announcing plans to file
Statements of Interest (SOI)
for four school projects in 2020
with the Massachusetts School
Building Authority.
The projects are the West and
South Elementary Schools, the
high school and Center School
with proposals aimed at submitting
plans to the MSBA to get the
high school and Center accepted
into the MSBA Core program.
The deadline for filing is April 8.
The high school has inadequate
heat and air flow and
science labs space need updating.
Center School’s problems
include a leaky roof and
the lack of dedicated space for
a library (currently located in
a classroom), gymnasium and
cafeteria.
The city plans to file
Statements of Interest with
MSBA seeking to get the West
and South schools accepted into
the agency’s Accelerated Repair
program to upgrade and/or replace
the existing roofs.
The Accelerated Repair program’s
deadline is Friday, Feb. 14.
• jcolimpio@verizon.net • www.olimpiolaw.com
All Services Provided for Businesses and Individuals
(Located across from Richardson’s Ice Cream)
The Peabody Recreation
Department is hosting “Wine
about Winter,” a 21-and-over
night of comedy and wine
tasting Friday, Feb. 7 from
6:30-9:30 p.m. at Wiggin
Auditorium.
The “Wine a Little, Laugh a
Lot” ticket is $65 and includes
wine tickets and the comedy
show. The “Designated Driver”
ticket for non-drinkers is $50
and includes comedy show only.
The evening features the
comedy of Alex Giampiapa,
often referred to as “the nicest
cynic you’ll ever meet.”
He began performing at the
age of 19 and soon became a
mainstay on the Boston standup
comedy scene. He’s shared the
stage with comedians Bill Burr,
Hannibal Buress and Gary
Culman and has opened for
Adam Devine and Erik Griffin
of Workaholics.
A 2018 selection for both the
Big Pine Comedy Festival in
Flagstaff, Arizona, he competed
in the World Series of Comedy
and is a three-time finalist in The
Beantown Comedy Riots. He
has been featured in the Salem
Comedy Festival, the Motor
City Comedy Festival in Detroit
and the Mutiny Radio Comedy
Festival in San Francisco.
Doors will open at 6:15 when
Have a story to share?
Need a question answered?
contactus@essexmedia.group
the first 35 people who register
will have the opportunity to
participate in a complimentary
45-minute wine-themed craftmaking
session from Create &
Escape.
Appetizers and wine will be
served promptly at 6:30. At
7:30, Drew Dunn, winner of the
Seattle International Comedy
Competition, takes center stage,
followed by the Giampiapa’s
main event at 8:15.
To register for the event,
please go to www.http://peabodyma.myrec.com/.
A driver’s license or government-issued
ID is required for
admission.
Happy
Valentine’s
Day
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Heat Shaped Cookies
Themed Layer Cakes
Long-stemmed Rose Cakes
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Heart Shaped Cheesecake for 2
197 Washington St., Peabody, MA
978.532.0102
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