# Can I apply for SocSec 3 months before I retire?



## kim7346 (Sep 27, 2019)

Retiring at 66 late next year. Was told that I can apply for Social Security and Medicare Part B three months BEFORE retirement and set an "effective date" for AFTER I've retired. Is that true?


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## TravelinMan (Sep 27, 2019)

You can apply for SS and Medicare (Parts A, B & D) three months _before_ the first day of the month you turn the appropriate age.  That would be 65 for Medicare and 66 or later for SS.  If you are financially able and expect to live a long life, you can delay receiving SS up until age 70 and receive an increased benefit of 8% per year.  If you have not already signed up for Medicare part D, I'm afraid you will be penalized for not signing up during the allowable window when you turned 65.  You will most likely also want to buy a Medicare supplement policy, like part G. Talk to a reputable insurance agent--there are scads of them now well versed in Medicare.


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## kim7346 (Sep 27, 2019)

TravelinMan said:


> You can apply for SS and Medicare (Parts A, B & D) three months _before_ the first day of the month you turn the appropriate age.  That would be 65 for Medicare and 66 or later for SS.  If you are financially able and expect to live a long life, you can delay receiving SS up until age 70 and receive an increased benefit of 8% per year.  If you have not already signed up for Medicare part D, I'm afraid you will be penalized for not signing up during the allowable window when you turned 65.  You will most likely also want to buy a Medicare supplement policy, like part G. Talk to a reputable insurance agent--there are scads of them now well versed in Medicare.


I have insurance through my employer's group health plan (which includes prescription drugs) right now. To avoid any penalty I simply have to show proof of credible coverage, don't I? I had planned on signing up for a Medicare supplement and a Part D plan to take effect after I retire.


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## Butterfly (Sep 27, 2019)

Call Social Security/Medicare at their 800 number to get the straight scoop.


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## fmdog44 (Sep 27, 2019)

Take Butterfly's advice. This is too important to take advice from well intending folks that could be wrong. Call Select Quote might be another way through it. They were a big help to me.


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## Pecos (Sep 27, 2019)

If you start taking SSA before you full retirement age, you have to be careful about how much you will earn during the last three months of your employment. If it goes over a certain amount, the IRS will tax you pretty heavily on the excess. 
I started SSA a few months before I retired on the understanding that I would change over to an on-call part-time consultant and not work that much. Well, my company called me a lot more than originally planned and I was taxed at a rate of 50% on the excess.


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## TravelinMan (Sep 27, 2019)

Good advice, Pecos. Until *you* reach full retirement age, *Social Security will* subtract money from your retirement check *if you* exceed a certain amount of earned *income* for the year. For the year 2019, this limit on earned *income* is $17,640 ($1,470 per month). The amount goes up each year. 

Kim, you are probably right about Part D.  Get some professional advice.


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## kim7346 (Sep 27, 2019)

Pecos said:


> If you start taking SSA before you full retirement age, you have to be careful about how much you will earn during the last three months of your employment. If it goes over a certain amount, the IRS will tax you pretty heavily on the excess.
> I started SSA a few months before I retired on the understanding that I would change over to an on-call part-time consultant and not work that much. Well, my company called me a lot more than originally planned and I was taxed at a rate of 50% on the excess.


Thanks for the advice, but I won't be retiring until next year -- when I reach my full retirement age of 66.
By the way, Butterfly, I took your advice. I called Social Security/Medicare at their 800 number and they told me that I can apply for Social Security and Medicare Part B/Part D three months before I retire. I plan on retiring in late September, and will set an "effective date" of October 1 for SS and Medicare.


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## Butterfly (Sep 27, 2019)

kim7346 said:


> Thanks for the advice, but I won't be retiring until next year -- when I reach my full retirement age of 66.
> By the way, Butterfly, I took your advice. I called Social Security/Medicare at their 800 number and they told me that I can apply for Social Security and Medicare Part B/Part D three months before I retire. I plan on retiring in late September, and will set an "effective date" of October 1 for SS and Medicare.



I'm glad.  I've always had very good luck with the 800 number folks.  I used to sometimes have to get this kind of advice for clients back when I was still working and I originally took a couple clients down to the local SS office, but we found their advice to be not as reliable as the 800 number people -- plus you don't have to stand in line forever and then deal with someone who may or may not either understand the problem or even give a hoot.  So I'd just schedule a call with the SS people and have the client come in and  we'd talk to SS and get their questions answered.


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## GreenSky (Sep 29, 2019)

kim7346 said:


> I have insurance through my employer's group health plan (which includes prescription drugs) right now. To avoid any penalty I simply have to show proof of credible coverage, don't I? I had planned on signing up for a Medicare supplement and a Part D plan to take effect after I retire.



You are 100% correct. As long as the drug plan on your group plan is considered creditable coverage you will not have a Part D penalty when you sign up. 

Since you have a year before retirement there is no rush. Apply for Medicare (and if you wish social security) 3 months prior to leaving the group plan. There is absolutely no rush to get a Part D or supplement. Agents will want to push you into a choice but rarely do I even bother signing someone up until about 4-6 weeks out. We never can be sure about rate changes if we do this too soon.

Rick


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