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Social Security and WEP

 

Bill Hines, Retirement Planner
(@hines202)
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I have a client whose social security benefits are effected by Windfall Elimination Provision (WEP). The manual states "(if you are affected by the Windfall Elimination Provision, you will need to use the WEP Online Calculator rather than the Retirement Estimator)".

I don't see any mention of either of those things elsewhere in the manual. Could more detail be provided as to how to enter their SS benefits in PRC Gold? Reduce FRA somehow for that $240/month reduction for WEP?

Bill Hines
Financial Counselor/Retirement Planner
Money Coach Group, Inc
https://moneycoachgroup.com
bill@moneycoachgroup.com


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Stuart Matthews
(@smatthews51)
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Joined: 7 months ago
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Bill, as I understand it the WEP reduces the primary SS benefits as a result of the record holder having received income from an employer that didn't withhold SS taxes. The WEP Online Calculator accepts as an input the pension amount expected from that employer that didn't withhold SS taxes and combines that with earnings from an employer that did withhold SS taxes to estimate the expected SS benefit. This resulting value should then be entered into PRC's "Annual Benefit Amount at FRA" field. The pension from the employer that didn't withhold SS taxes should be entered separately into one of PRC's other pension fields.


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Bill Hines, Retirement Planner
(@hines202)
Eminent MemberCustomer
Joined: 4 months ago
Posts: 46
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Topic starter  

Yes, that's how it works, you're correct. I see that ssa.gov has a chart on their webpage, and there are a few WEP calculators on the 3rd party SS calculator pages. It's good to know how to apply that result in PRC - thanks!

Bill Hines
Financial Counselor/Retirement Planner
Money Coach Group, Inc
https://moneycoachgroup.com
bill@moneycoachgroup.com


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