Will My Wife's Snow Cone Business Affect Her Railroad Retirement?

Welcome, everyone, to another edition of the Highball Advisors Railroad Retirement Mailbag. I'm John McNamara with Highball Advisors, and today’s question comes from Bennie. He asks:

“My wife is already retired and runs a snow cone business. When I retire, will that affect the portion she receives from my retirement — specifically the spousal annuity?”

Great question, Bennie!

So, let’s break it down. Work deductions do apply to earned income, and since your wife’s snow cone business generates earned income, it could trigger deductions — particularly in the Tier I portion of the spousal annuity.

Now, depending on how the business is structured, there could also be Last Pre-Retirement Employer (LPE) deductions affecting the Tier II benefits. Again, that depends on the setup, which I don’t have full details on.

Another factor to consider is age reductions. If you retire before your full retirement age ( less than 60 and 30years), you will have age reductions come into play also.

To get a more complete picture, I recommend checking out my video titled: “What You Need to Know About Spouse Benefits for Railroad Retirement.” It covers many of these issues in more detail.

Alright, railroaders, I hope you found this helpful! Keep the questions coming — I might feature yours in a future video.

Until next time, stay safe, stay on track, and take care. So long, everybody!

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.