Issue 43.12
RETIREMENT
Question:
I’m retired and the only income I have is from an Individual Retirement Account (IRA). Are my IRA withdrawals considered “earnings”? Could they reduce my monthly Social Security benefits?
Answer:
No. We count only the wages you earn from a job or your net profit if you’re self-employed. Non-work income such as annuities, investment income, interest, capital gains, and other government benefits are not counted and will not affect your Social Security benefits. Most pensions will not affect your benefits either. However, your benefit may be affected by a government pension from work on which you did not pay Social Security tax. For more information, visit our website at www.socialsecurity.gov or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778).
Question:
How do I earn coverage for Social Security?
You earn Social Security credits, sometimes referred to as quarters of coverage, when you work and pay Social Security taxes. The credits are based on the amount of your earnings. In 2012, you receive one credit for each $1,130 of earnings, up to the maximum of four credits per year. Each year, the amount of earnings needed for a credit goes up slightly as average earnings levels increase. Generally, a person needs 40 credits to be eligible for retirement benefits.
There are special rules for the self-employed. Read more about self-employment and Social Security in our online publication, If You Are Self Employed, at http://socialsecurity.gov/pubs/10022.html.
To learn the amount required for Social Security credits for prior years, see Quarter of Coverage at www.socialsecurity.gov/OACT/COLA/QC.html.
SUPPLEMENTAL SECURITY INCOME
Question:
I was turned down for Supplemental Security Income (SSI); can I appeal the decision?
Answer:
If you disagree with a decision made on your claim, you can appeal it. The steps you can take are explained in Your Right To Question A Decision Made On Your Supplemental Security Income (SSI) Claim, available online at www.socialsecurity.gov/pubs/11008.html. Also, you have the right to have a representative, such as an attorney, help you. More information is in Your Right To Representation, at www.socialsecurity.gov/pubs/10075.html. Read these and other publications online at www.socialsecurity.gov/pubs.