Social Security and Divorce

How can a divorce affect your Social Security benefit options?

The divorced spouse benefit is the same as the benefit for spouses as long as the marriage lasted at least 10 years and the ex-spouse who is receiving the spousal benefit has not re-married.

An interesting fact is that more than one ex-spouse can receive spousal benefits on the same worker’s record! Any spousal benefits paid to one ex-spouse will not impact any benefit payments made to the worker, the worker’s current spouse or other former spouses.

The minute an ex-spouse re-marries, the divorced spouse benefits stop and it cannot be reclaimed even if the new marriage doesn’t last.

On a side note, workers are not notified that an ex-spouse has applied for spousal benefits as a matter of public policy to avoid potential conflict.

Source: www.ssa.gov

More Updates

IMPORTANT TRUST DEADLINE APPROACHING

For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can

Read More »

CRDS AND ROTH CONVERSIONS – ABUSE OF THE RULES?

The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

Read More »

Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

Read More »
Scroll to Top