Before You Pick a Social Security Start Month: Check the Age Math, the Withdrawal Rule, and What the Check Moves

A Social Security start month sets a monthly amount that usually lasts for life, and it can change how much other help costs. Do not pick a month because a friend picked one. Before anyone files, know four things: the birth date on the record, the full retirement age for that birth year, the monthly amount at each start month you are weighing, and what that amount does to the other lines in the budget.

Local option: New Plan Care gives families in the St. Louis area in-home help so a parent can stay home: companionship, help with bathing and dressing, meals, and overnight care. Call (314) 405-0887.

The age math

Confirm the birth date on the Social Security record. Full retirement age depends on birth year, and the Social Security Administration publishes the table. Starting before full retirement age permanently reduces the monthly amount, and waiting past full retirement age adds delayed retirement credits up to age 70. Ask the agency for a written estimate at each start month you are considering, and compare those estimates side by side instead of relying on a rule of thumb.

The withdrawal window

Social Security allows a person to withdraw an application within a limited period after filing, provided the benefits already paid are repaid. The request is made on Form SSA-521, Request for Withdrawal of Application. Check the current window on the agency's website before you rely on it. Withdrawal is not a free undo, because repayment has to be made and the record changes.

The earnings test

If the parent still works, starting early may reduce benefits when earnings pass the annual limit the agency sets. Ask the agency how the earnings test would apply to the expected earnings in the first year, and get that answer in writing before you pick the month.

What the check moves

Income counts for Medicaid, which Missouri runs through MO HealthNet under the Missouri Department of Social Services. It also counts for Extra Help with Part D costs and for income-based Medicare premium adjustments. Ask Missouri SHIP to run the new monthly amount against each of those lines before you file, because a higher check can move a parent out of one program and into a cost they did not plan for. Whether any part of the benefit is taxable depends on combined income, and the IRS explains the rule in Publication 915. Tax filing questions belong to a tax preparer.

Questions to ask before anyone files

Ask the agency what the monthly amount would be at each start month, how the reduction or credit was calculated, whether and until when the application can be withdrawn, and how the withdrawal would be repaid. Then ask Missouri SHIP what the new income does to Medicare costs and Extra Help. Write each answer down with the name of the person you spoke with.

For the full list of programs that count income, the Who Pays for Care at Home in St. Louis page sets the lines side by side. The Local Help With Paying for Care page lists the no-cost counselors to call before the filing date, and the Sources page lists the agency pages behind each figure you will need.