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STRATEGIC ISSUES...ONLINE
For week
of April 18, 2005, Issue
#208
Featured Articles:
1. Knowing the Basics
of Social Security
Benefits When Planning
Your Retirement
2. Focus on Fraud:
"Absent Regulation,
Identity Theft Grows"
3. Tech Tip Weekly: A
Clean Mouse is a Happy
Mouse
4. Compliance Calendar
1. Knowing the Basics
of Social Security
Benefits When Planning
Your Retirement
For all of us, social
security payments are a
part of retirement
planning. Here are a
few answers to some
basic questions on
social security.
When can I start
drawing benefits?
You can start to draw
your standard benefit
when you reach your full
retirement age. That's
at age 65 if you were
born before 1938. Full
retirement age increases
progressively to age 67
if you were born in
later years. But you
can choose to receive a
reduced benefit any
time after you reach age
62. The earlier you
start, the bigger the
reduction. Or you can
increase the size of
your monthly payment by
delaying drawing
benefits beyond your
retirement age.
Will my benefits
be taxed?
Whether you'll have to
pay income tax on the
social security benefits
you receive depends on
your income level. If
your 'provisional
income" exceeds certain
thresholds, up to 85% of
your social security
benefits could be
subject to tax.
Generally, provisional
income is your total
income from all sources,
including tax-exempt
interest, plus one-half
of your social security
benefits.
What happens if
I keep working while
receiving social
security?
If you've reached full
retirement age, you can
keep working without
reducing your benefits.
But if you're drawing
benefits in the years
before full retirement
age and still working,
your benefits could be
reduced. Generally,
you'll lose $1 in
benefits for every $2
you earn above a certain
amount ($12,000 in
2005). Different rules
apply in the year you
actually reach your
retirement age. In a
few cases, continuing to
work while you're
drawing benefits can
actually increase your
later benefits.
How do I decide
when to begin drawing
benefits?
Deciding when to start
drawing benefits and
when to stop working is
a very personal
decision, but it's
critical for your
retirement planning. We
can supply the numbers
and explain the tax
issues to help you make
the right choices. For
assistance, give us a
call.
2. Focus on
Fraud: "Absent
Regulation, Identity
Theft Grows"
A recent article on
MSNBC.com makes for good
reading for everyone.
3. Tech Tip
Weekly: A Clean Mouse
is a Happy Mouse
If your mouse is acting
strangely -- the cursor
skips around on your
screen, for example --
then the mouse may need
some cleaning. Most
mice have a ball inside
that you can get to by
removing the small cover
(usually a rotating
disk) on the bottom of
the mouse. Clean the
ball with a soft cloth,
cotton swab, or tissue.
Remove gunk (dust,
crumbs) from inside the
housing. Replace the
ball and cover, and it's
back to smooth sailing.
4. Compliance
Calendar
April 20
-Employers deposit
Social Security,
Medicare and withheld
income tax for payments
April 13, 14, and 15.
April 22
-Employers deposit
Social Security,
Medicare and withheld
income tax for payments
April 16, 17, 18, and
19.
April 27
-Employers deposit
Social Security,
Medicare and withheld
income tax for payments
April 20, 21, 22, and
23.
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