Will My Wife's Social Security Payment Come From My Railroad Retirement?

Welcome to another edition of the Highball Advisors Railroad Retirement Mailbag! I’m John McNamara from Highball Advisors, and today’s question comes from Keith E. He asks, “My wife is switching from Railroad Retirement to Social Security benefits. We’ve done the math and know this is the better financial option for us. Our question is: Social Security is giving her a lookback of $18,000. Does the Railroad Retirement Board need to be paid part of that money equal to the Tier 1 benefits she received during that time? We’ve tried to research this but aren’t sure how to phrase the question correctly.”

Great strategy, Keith! It’s smart to understand how to maximize Social Security benefits for a non-railroad spouse with an earnings record. In your case, Social Security’s retroactive payment of $18,000 is based on the lookback period, which is typically up to six months.

Here’s the good news: Social Security does not require the Railroad Retirement Board to be paid any portion of that retroactive payment. The retroactive payment applies to Social Security only and does not involve the Tier 1 benefits your wife received from Railroad Retirement. So, there’s no need to worry about splitting that amount with the Railroad Retirement Board.

For more information on making the best choice between Social Security and Railroad Retirement, check out my video Choosing Between Social Security and Railroad Retirement: Which One is Right for You?. It covers many of the issues you brought up.

I hope this helps, Keith! Feel free to send in your questions, and I’ll create a video to address them. Until next time, everyone, stay safe, stay on track, and take care! So long, everybody! Bye!

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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.