Retroactive Social Security Back Payment Lump Sum

In this video we will explore who qualifies for a lump sum payment when filing for your Social Security benefit.

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[pauld]

A benefit could be to delay that income into another year, so you can do more roth conversions in the present year without maxing out your tax bracket or maybe hitting irmma limits.

[viralata]

In order to know if this is a good deal for you complete a breakeven analysis that calculate the higher annual payments of NOT taking the lump sum amount against your now lower monthly payment if you do take the lump sum. Use a pension calculator (or build a spreadsheet) and run both monthly payments forward in time. You will want to include a COLA assumption and add an inflation factort if you want to convert to present value. And don't forget to estimate and deduct the taxes you will pay on the lump sum distribution. What you will probably find is that for most people the lump sum payment becomes less valuable if you live until about 80 to 85. There are also loss of spousal benefits to consider. Good Luck

[wisdominvestor]

Would you consider waiting six months after your full retirement age to collect a lump sum Social Security benefit?

[calvintanner]

What if you have an ongoing disability since birth ( Cognitive Impairment ) which is psychological for understanding things and/or performing tasks ?

[mindacastillo]

How about if the FRA is 66 but apply for sss retirement at age 70 due to misunderstanding..