Resource Center

5 investment ideas for small-business owners struggling to keep their finances liquid

January 26, 2023

Three local financial experts share their advice.

Written by Gene Marks

Even as commercial lending rates have more than doubled in the last year, interest rates earned on checking, money market and savings accounts remain stubbornly low as banks seek to maintain their profitability.

That’s not helpful for business owners, who need to earn money on their cash reserves while keeping enough liquidity to meet faily working capital needs. Options remain limited, but the environment is slowly changing, and a number of investment choices with minimal risks are emerging.

Click here to read full article from the Philadelphia Inquirer, featuring Andrew Hipple CFP®, Partner at Lane Hipple Wealth Management Group.

Navigating Medicare

May 30, 2025

By: Elaine Floyd, CFP®

Back in the day, when full retirement age for Social Security was 65 and most people retired and claimed benefits then, Medicare basically took care of itself. Enrollment was automatic along with the Social Security application, and many employers offered retiree health insurance to supplement Medicare. Those who didn’t have retiree insurance could buy a Medigap policy to cover prescription drugs (Part D did not yet exist), and some of the gaps left by Medicare, primarily the Part A deductible and the Part B 20% coinsurance. Medicare Advantage did not yet exist. Once a person was on Medicare with their retiree insurance or supplement, there was very little for them to think about. Medical bills were paid behind the scenes and the occasional bill they did receive was easily paid out of pocket.

Medicare is much more complicated today. If you are not receiving Social Security at age 65 (which, hopefully, you are not), you will not automatically be enrolled in Medicare. If you are working past age 65 and staying on your employer plan, you will have to figure out when and how to make the transition to Medicare, also taking your spouse’s insurance into consideration. With medical costs now so high and fewer employers offering retiree coverage, private insurance plays a much bigger role than it did before. This opens up many more choices and complications, all of which hinge on your individual health status and expected health care usage both now and in the future.

Financial advisors are often called to help with Medicare, even though it is clearly outside their financial wheelhouse. But because HR people who are helping employees with the rest of their retirement don’t really understand Medicare (and how it interacts with COBRA), and because you are being bombarded with marketing messages from private insurers who don’t have your best interests in mind, a little direction from your financial advisor can go a long way. It is not necessary for them to pry into your personal health situation, but by receiving a few tools and resources you should be able to navigate Medicare on your own.

Medicare enrollment periods

There are specific times a person can enroll in Medicare. In fact, the Medicare application asks a series of questions to determine if the person is currently in one of the enrollment periods. If not, they will not be allowed to proceed with the application.

The first is when they turn 65. This is called the initial enrollment period. A person can enroll in Medicare up to three months before their 65th birthday. Coverage will start the first of the month they turn 65. If they’re a little late it’s okay—they can apply up to three months after their 65th birthday. Coverage will start the first of the month after they enroll.

The second is called the special enrollment period and it’s for people who want to stay on an employer plan (based on active employment of self or spouse) after age 65. As long as they maintain continuous coverage under the employer plan, they can switch over to Medicare at any time. Most commonly the transition to Medicare is done when they leave employment. But they can do it anytime after age 65 (i.e., while still working) and up to eight months after termination. There is really no reason to utilize the 8-month grace period, though, because it could result in coverage gaps. COBRA pays secondary to Medicare for anyone age 65 or older, so even if a person takes COBRA (too expensive!), they will have to enroll in Medicare.

The third enrollment period is the general enrollment period, from January 1 to March 31 of each year, with coverage starting the month after enrollment. This is for anyone who missed one of the other Medicare enrollment periods. If there has been a gap in coverage, there may be a late-enrollment penalty: 10% of the Part B premium for every 12-month period they went without health insurance after age 65. This penalty will be assessed every year.

Part A and Part B enrollment is through SSA

The Social Security Administration handles Medicare enrollment. The easiest way to enroll is to do it online. Or people can call the main number: 800-772-1213. They’ll need to provide their Social Security number and place of birth as well as current health insurance information. It will not be necessary to prove insurance if they are enrolling during their initial enrollment period. But if they are enrolling after age 65, during their special enrollment period, in order to avoid penalties they’ll need to have their employer sign CMS Form L-564 attesting to their continuous health insurance coverage. If their initial enrollment period overlaps with their special enrollment period, the initial enrollment period takes precedence.

What Clients Need To Know About Opening and Managing Their Social Security Account

Go to Medicare.gov for private insurance options

Once a person is enrolled in Medicare Parts A and B, they can sign up for: 1) a Medigap policy and Part D drug plan, or 2) a Medicare Advantage Plan. Note that enrollment in these plans cannot take place until they are enrolled in Medicare, but shopping can start earlier. People who want to do it themselves can go to medicare.gov and “find health and drug plans” based on their zip code.

If they have opted for Original Medicare with a Medigap policy, they’ll be shopping for both a Part D drug plan and the Medigap policy. For the drug plan, they’ll want to enter their drugs and dosages in order to see what their out-of-pocket costs would be under each plan. If they don’t take any drugs, they can simply choose the lowest-premium plan. (But they can’t skip Part D; if they go more than 63 days without creditable drug coverage there will be a late enrollment penalty.) Drug plans operate a year at a time. If a person’s drug regimen changes or if the plan changes, they can shop for a new drug plan during the fall open enrollment period (Oct. 15–Dec. 7) and the new plan will start January 1. For Medigap, they’ll want to focus on Plan G, the most popular and comprehensive plan. The Medicare.gov website shows the options from the different carriers. “Issue age” is the better pricing method, otherwise premiums will escalate rapidly as they age. Because benefits are the same for all Plan G policies, they’ll be focusing primarily on monthly premiums. For drug plans they can enroll directly through the Medicare.gov website or, if they have further questions, can call the insurer and have them take the application. For Medigap policies they can call the plan or enroll through the company’s website.

People who opt for a Medicare Advantage plan can pull up all the plans in their area and review benefits and costs. Most Advantage plans have very low (or no) premiums, so it will be a matter of reviewing benefits and out-of-pocket costs for the various services. Medicare Advantage shopping can be a challenge because if there are things that are wrong with the plan—such as a narrow provider network or a propensity to delay or deny care—they won’t be apparent other than indirectly through a low star rating.

Open Medicare account

Once a person has enrolled in Medicare they can establish an account at medicare.gov and keep track of their claims, costs, and other information.

While transitioning to Medicare can be rather time-consuming, once it’s set up it should be easy to manage, especially if the person has Original Medicare and a Medigap policy and drug plan. Virtually all Medicare-approved expenses will be covered and paid behind the scenes. Drug plans will need to be reviewed annually, but the switch to a new plan is easy. (Be sure to note if the preferred pharmacy changes.) Medicare Advantage plans could be easy or difficult to manage depending on your health care experience and whether you face delays or denials in care. If you are dissatisfied, these plans can also be changed once a year.

Source: Horsesmouth, LLC
Horsesmouth, LLC is not affiliated with Lane Hipple or any of its affiliates.

How to Navigate The Distribution Options For a Non-Designated Beneficiary

May 29, 2025

By: Denise Appleby, MJ, CISP, CRC, CRPS, CRSP, APA

The Ghost Rule and other important factors for non-person IRA beneficiaries.

When advising beneficiaries of distribution options for their inherited IRAs and employer plans (retirement accounts), one must know the category under which the beneficiary falls. Is the beneficiary a non-designated beneficiary? A designated beneficiary? Or an eligible designated beneficiary? The answer determines the pace at which the beneficiary must take distributions and whether they can roll over inherited employer plan accounts. In this article, we focus on non-designated beneficiaries.

What is a non-designated beneficiary?

To answer the question “What is a non-designated beneficiary?” we must first know “What is a designated beneficiary?”

A designated beneficiary is a person.

A beneficiary that is not a person is not a designated beneficiary. For the purpose of this article, we refer to such beneficiaries as non-designated beneficiaries. Examples of non-designated beneficiaries include estates and charities.

Please note: A see-through trust is a designated beneficiary for required minimum distribution (RMD) purposes. Trust beneficiaries are outside the scope of this article.

The distribution options for a non-designated beneficiary

The distribution option for a non-designated beneficiary depends on whether the participant died before their required beginning date (RBD). The required beginning date is April 1 of the year following the year in which the participants attained their applicable age, which is the year for which their first required minimum distribution (RMD) is due.

The applicable age is determined by the participant’s date of birth in accordance with the following schedule:

• For participants born before July 1, 1949, the applicable age is 70 ½,
• For participants born on or after July 1, 1949, but before January 1, 1951, the applicable age is 72,
• For participants born on or after January 1, 1951, but before January 1, 1959, the applicable age is 73,
• For participants born in 1959, the proposed applicable age is 73*, and
• For participants born on or after January 1, 1960, the applicable age is 75.

*The SECURE 2.0 Act is ambiguous regarding the applicable age for participants born in 1959. The proposed regulations for SECURE 2.0 define the applicable age for participants born in 1959 as 73. This rule might change when the regulations are finalized.

More SECURE Act 2.0 Changes: What 2025 Brings to Retirement Planning

Special rule for employer plans: An employer plan may provide that an employee’s applicable age is past the ages listed above until the year the employee retires from working for the employer. Beneficiaries should check with the administrator of an inherited employer plan account or benefit regarding whether the participant died before their RBD.

Death before the RBD-traditional and Roth account

If the participant dies before their RBD, the 5-year rule applies. Under the 5-year rule, distributions are optional until the 5th year after the participant’s death, when any remaining balance must be distributed.

Because there is no RMD for Roth IRA owners and—as of 2024, designated Roth accounts (DRA), this 5-year rule applies to such accounts regardless of the age at which the participant dies.

Death on or after the RBD—traditional accounts and DRAs inherited before 2024

If the participant dies on or after their RBD, distributions must be taken annually over the decedent’s remaining single life expectancy. The decedent’s life expectancy is colloquially called the Ghost Rule (a term I heard first used by Robert S. Keebler) because it uses the life expectancy of someone who is dead.

This rule applies to traditional accounts, not Roth IRAs. It also applies to DRAs inherited before 2024.

When a person is treated as a non-designated beneficiary for RMD purposes

When a retirement account’s only beneficiary is a non-designated beneficiary, the rules are straightforward—that beneficiary is subject to the RMD rules explained above under The Distribution Options for a Non-designated Beneficiary. However, complexity is added when a person shares beneficiary status with a nonperson.

While a person is generally a designated beneficiary, a retirement account is treated as not having a designated beneficiary if the person shares beneficiary status with a nonperson. This non-designated beneficiary status for the person can be changed if the nonperson beneficiary properly disclaims or takes a full distribution of its share by September 30 of the year that follows the year the retirement account owner dies. Beneficiaries should consult with their estate planning attorneys regarding eligibility to make disclaimers.

Example 1

65-year-old James died in 2024, leaving his daughter Suzanne and a charity as primary beneficiaries of his IRA to be split 50/50.

If the charity distributes its full share by September 30, 2025, the IRA will have a designated beneficiary, and Suzanne will be able to take distributions under the 10-year rule.

If the charity does not fully distribute its share by September 30, 2025, Suzanne must take distributions under the 5-year rule because the account would be treated as not having a designated beneficiary.

Example 2

75-year-old Janet died in 2024, leaving her son Gary and a charity as primary beneficiaries of his IRA to be split 50/50.

If the charity distributes its full share by September 30, 2025, Gary will be able to make distributions under the 10-year rule. Gary must also take annual RMDs over his single life expectancy.

If the charity does not fully distribute its share by September 30, 2025, Gary must take distributions over Janet’s remaining single life expectancy.

You must ask a person if they are the only beneficiary

In the examples above, Suzanne and Gary must each transfer their share of their inherited IRAs to their own beneficiary IRAs. If you advise either of these beneficiaries about their distribution options, you must confirm whether each is the sole beneficiary or one of multiple beneficiaries for the IRA they inherited. If a person shared beneficiary status with a nonperson, you must also confirm whether the nonperson beneficiary withdrew (or disclaimed if eligible to do so) their share by the September 30 deadline.

The beneficiary’s confirmation helps you provide accurate information about their distribution options. Otherwise, your advice could be incorrect. For instance, if you assume that Suzanne is subject to the 10-year rule because she is a person and advises her accordingly, your advice would be incorrect if the charity did not meet the September 30 deadline. As a result, Suzanne will have RMD shortfalls if she does not withdraw any remaining balance by the end of the fifth year.

RMD shortfalls are subject to a 25% excise tax (reduced from 50% as of 2023).

No rollovers allowed

Assets moving from a decedent’s retirement account to the beneficiary’s account must be moved as a nonreportable transfer. This nonreportable movement means no tax forms would be issued, and the transfer would not be reported on the beneficiary or the decedent’s tax return.

Distributions taken by a non-designated beneficiary- whether from an inherited IRA or inherited employer plan account- cannot be rolled over.

Pre-death planning consideration

Many employer plans do not allow non-designated beneficiaries to keep inherited accounts under their plans. For example, the RMD regulations give a non-designated beneficiary 5 years if the owner dies before the RBD, to fully distribute an inherited 401(k). However, the terms of the plan might require the non-designated beneficiary to fully distribute the inherited 401(k) within a few months after the participant’s death.

IRAs are usually more estate-planning friendly, allowing distributions to be taken over the period available under the RMD regulations, the 5-year rule and the decedent’s remaining life expectancy.

If you have savings in an employer plan- such as a 401(k), check the summary plan description (SPD) to determine the distribution options available to your beneficiaries. The plan administrator can help you interpret any complex and unclear provisions. If the plan’s options are more restrictive than the RMD regulations, the participant can roll over eligible amounts to an IRA and designate the beneficiaries for that IRA.

A retirement account owner should have an estate planning attorney who is an expert on the RMD regulations and review their beneficiary designations as a part of their operable state planning.

Source: Horsesmouth, LLC
Horsesmouth, LLC is not affiliated with Lane Hipple or any of its affiliates.

The Top Ten Common Estate Planning Mistakes

April 29, 2025

Avoiding these common mistakes can spare your family unnecessary stress

Estate planning is essential for anyone who wants their assets and possessions to be passed along smoothly to their chosen heirs. Beyond money, it’s about ensuring your wishes are clear and your loved ones are spared the added burdens of legal disputes or financial hardships after you’re gone. Here are some of the most common estate planning mistakes and how to avoid them, so you can create a solid legacy for your family.

What Is an Estate Plan?

An estate plan is a set of legal documents that determine how your assets will be handled after your death or if you become incapacitated. At its core, an estate plan typically includes a will, a trust, an advance healthcare directive, and power of attorney documents.

Even if you don’t have significant assets, an estate plan is still valuable, especially for expressing your wishes about medical care and potentially reducing family disputes.

Common Estate Planning Mistakes to Avoid

1. Procrastinating – Far too many people delay estate planning, assuming they’ll get to it later in life. But life’s unpredictability means waiting can lead to unintended outcomes, especially in the case of sudden incapacity or death. Without an estate plan, your loved ones could face lengthy legal processes to access your estate, and they may not have clarity on your medical preferences if you’re incapacitated. Creating an estate plan sooner rather than later ensures you’re prepared, whatever life may bring.
 
2. Creating an Estate Plan on Your Own – While DIY estate plans are increasingly popular, they often lead to complications when they’re incomplete or contain errors. An estate attorney can provide invaluable guidance, ensuring your plan covers all necessary elements and is legally sound. The cost of hiring an estate attorney can vary, but many offer free consultations or flat fees for specific services, like drafting a will. Investing in expert advice can prevent expensive and emotionally taxing issues for your family down the line.
   
 
3. Leaving Loved Ones Uninformed – Estate planning involves difficult conversations, but they’re crucial. Openly discussing your intentions with relevant family members and heirs can help prevent confusion, potential conflicts, and the added stress that often accompanies these situations. Making sure your family understands your wishes – and has a roadmap of what to expect – helps avoid potential misunderstandings.
   
 
4. Keeping Estate Planning Documents Locked Away – An estate plan is only useful if it can be accessed. Storing your documents in a safe or safe deposit box may seem like a secure option, but it can make them difficult to retrieve. Instead, share copies with your executor or trustee, a trusted family member, and your attorney, and ensure your family has contact information for these key individuals. This proactive step can ease the process for your loved ones when they need it most.
   
 
5. Missing Key Documents – A complete estate plan includes several essential documents. Missing one or more of these can lead to disputes and unintended consequences. Ensure your estate plan includes:
    
   • Last will and testament: Outlines your wishes for asset distribution and affairs management after your death.
    
   • Beneficiary designations: For accounts like 401(k)s, IRAs, pensions, and life insurance policies.
    
   • Durable power of attorney for medical care: Names someone to make healthcare decisions
     for you if you’re incapacitated, often paired with an advance healthcare directive.
    
   • Durable financial power of attorney: Appoints someone to manage your finances if you’re
     unable to do so.
    
   • Funeral instructions: Specifies your funeral or memorial preferences.
    
   • Proof of identity and personal documents: Such as your Social Security card, birth
     certificate, marriage/divorce certificates, and any prenuptial agreements.
    
   • Deeds or loan documents for significant assets: Includes properties, boats, or other valuable items.
    
   • Living or revocable trust: Optional, but can help your heirs avoid probate and facilitate asset transfers.
     
 
6. Overlooking Digital Assets – In today’s digital age, it’s easy to overlook the importance of planning for online accounts and digital assets, including social media profiles, cryptocurrency, and cloud storage. Appoint a digital fiduciary in your estate plan who can access and manage these digital assets after your death, ensuring they’re handled according to your wishes.
   
 
7. Forgetting About Final Arrangements – Making arrangements for your funeral may not be pleasant, but it’s incredibly helpful for your family. Specify your preferences, set aside funds, and consider details like burial versus cremation and service style. With funerals costing over $8,000 on average in 2024 (according to the National Funeral Directors Association), planning ahead can alleviate both financial and emotional stress for your loved ones.
   
 
8. Ignoring Taxes – Depending on the size of your estate, tax liabilities can be substantial. While the federal estate tax exemption is $13.99 million in 2025, this threshold could revert to a lower limit if current laws change. Additionally, many states have their own estate or inheritance taxes, so it’s important to research your state’s policies when creating your plan.
   
 
9. Not Updating Your Plan – An estate plan isn’t a “set it and forget it” document. It should be reviewed after significant life events – like marriage, divorce, the birth of children or grandchildren, or acquiring new assets – to ensure it reflects your current wishes. In general, aim to revisit your plan every three to five years to keep it aligned with your circumstances and preferences.
   
 
10. Choosing the Wrong Executor or Trustee – Selecting the right executor or trustee is as important as drafting the plan itself. Avoid choosing someone who may have a conflict of interest or who lacks the time or ability to manage the responsibility. Ideally, choose someone trustworthy, unbiased, and willing to serve in this role, and make sure you discuss it with them beforehand.

Taking Action for a Secure Legacy

Avoiding these common estate planning mistakes can spare your family unnecessary stress and help ensure your wishes are honored. An effective estate plan isn’t just for the wealthy – it’s for anyone who values peace of mind and wants to protect loved ones from additional burdens.

Start the planning process now, and revisit your plan as life evolves, to safeguard the legacy you’ve worked so hard to build.

Smishing Scam Targeting Schwab Accounts

April 29, 2025

New “transaction verification” smishing campaign targeting clients with Schwab accounts

Charles Schwab has identified a new twist on the “smishing” fraud threat which is being used by fraudsters hoping to capitalize on market volatility and investor emotion to steal funds and data.

This version begins when the account holder receives a text message prompting them to “verify a transaction”—clicking the link leads the unwary investor to a fraudulent website that mimics Schwab’s login page, where they are prompted to enter their credentials. Once the credentials have been entered, the fraudsters use them to access Schwaballiance.com. The fraudulent website may also prompt the account holder to enter a two-factor verification code that they would automatically receive from Schwab, which once submitted allows the fraudster to complete the login process.

Once they have access, the fraudster will then change the security token on the account so that it points to a device in the hands of the criminals, instead of the account holder’s own device. At this point, the account holder is effectively locked out of the account, and the fraudster can begin initiating wire transfers that rapidly drain assets from the account. 

Why this matters now:

Fraudsters exploit market conditions like those we’re seeing now—times of uncertainty and volatility—knowing that an anxious investor is less likely to think carefully about security measures when they’re worried about their investments. The best defense is heightened vigilance on the part of you and your clients. 

Reminders:

• Do not click on links or attachments received via text message.
  • Instead, visit the official Schwab site by typing the URL into your web browser manually. 
  • Or utilize Schwab’s mobile application.
• Do not enter Schwab credentials or other information into a page reached by clicking a link. The same applies to phone numbers received via text message. Use a verified number you’ve used in the past.
• Double check that the URL provided is not a subtle variation of the real one.
• Stay calm and verify using official verified channels.

If you suspect a smishing attack, follow these steps:

• Take a screenshot of the text and forward it to phishing@schwab.com (Be sure the phone number is visible).
• Delete the text message.
• If you clicked on the link, you should stop logging into your online accounts and immediately run an anti-virus/malware scan and remove anything identified in that scan. Next, verify the operating system on the device is updated, and then change all relevant passwords. 
• Add security measures to your Schwab accounts, such as two-factor authentication and verbal passwords, which can help to secure against these attacks. See our brochure:
  10 simple tips to protect your Schwab Account 
• Be sure to report any suspicious or fraudulent activity in your accounts as soon as possible, especially if you entered your Schwab credentials into a fake website.

In Case of Death

April 25, 2025

Managing Death Records and Addressing Fraud Concerns

SSA’s death master file has been in the news lately, first in connection with DOGE’s “discovery” that there were 120-year-olds in the system who could not possibly still be alive (they weren’t, they were just never marked as deceased because of coding quirks, and were certainly not receiving benefits), and most recently because the Trump administration is reporting certain immigrants as deceased in an attempt to get them to self-deport.

Once a person is listed as deceased in SSA’s master death file, they have no Social Security number and thus can’t get a job, open a bank account or get a loan, and pretty much have no financial life in America. The Administration is hoping people in such a position will voluntarily leave the country, never mind that some of them are here legally or that allowing immigrants to work actually strengthens the Social Security system because many of them pay into the system without ever collecting benefits. And heaven help anyone who gets placed in SSA’s death master file by mistake; they must prove to SSA that they are still alive and it can takes weeks to get their financial life back.

SSA’s master death file holds death records for some 83 million people, partly to assist financial institutions, insurance companies, and state and local governments in detecting fraud (they must have a subscription to access the database), and partly to allow survivor benefits to be paid to the spouse and/or children of a deceased number holder listed in the file.

Reporting a death

It is usually not necessary for a surviving spouse to report the death. Deaths are generally reported to SSA by the funeral home. However, if this is not done for some reason, a surviving spouse would need to call SSA at (800) 772-1213 and provide the name, Social Security number, date of birth, and date of death of the decedent.

Decedent’s benefit stops immediately

Once a death is reported, SSA will immediately stop benefits being paid to the decedent. The financial institution will place a hold on any benefits that are direct-deposited after the date of death and will return them to SSA.

To be entitled to a benefit for any given month, a decedent must be alive the entire month. But benefits are paid in arrears, so it’s possible for a decedent (his estate, really) to be entitled to a check that arrives after death. For example, the check deposited in April would be for March. If a decedent died on April 2, and if the check (for March) was deposited in the account on April 16, the estate would be entitled to that payment. Since the bank will likely put a hold on it, the estate would have to reclaim the benefit by filing Form SSA-1724. This form also takes care of any Medicare premiums withheld after the decedent’s date of death.

$255 lump sum death benefit

SSA pays a $255 one-time lump sum death benefit to the surviving spouse of the decedent. If there is no surviving spouse the $255 death benefit is paid to minor or disabled adult children. If there are no spouse or children, it may be paid to a former spouse who is eligible for survivor benefits (i.e., if they were married over ten years or she is caring for the decedent’s child). To claim this benefit the spouse or child would need to call SSA at (800) 772-1213. It cannot be claimed online.

Survivor benefits

Ongoing survivor benefits may be paid to a surviving spouse, any eligible ex-spouses, and any minor or disabled adult children. These benefits can be claimed by calling SSA at (800) 772-1213 and making an appointment with an agent at a local office. They cannot be claimed online.

If the decedent dies before his full retirement age and before he has claimed his own retirement (or disability) benefit, SSA establishes a “death PIA” approximately equal to the amount he would have received if he had continued to work and claim his retirement benefit at his FRA. This death PIA is held in the system and increased by annual COLAs until the surviving spouse is ready to claim it. If she remains unmarried she may claim it as early as age 60; however claiming that early will cause it to be reduced to 71.5% of the full amount.

If the decedent dies after his full retirement age but before he has claimed his benefit, the “original” survivor benefit will equal the amount he would have received if he had claimed as of the month of death, including any delayed credits earned up to the month of death. The “actual” survivor benefit will depend on when the widow claims it and may range from 71.5% to 100% of the amount depending on when, between the ages of 60 and FRA, that she claims it.

If the decedent was receiving benefits at the time of his death, the original survivor benefit will generally equal 100% of his benefit amount. (If he was receiving less than 82.5% of his PIA by virtue of having claimed at age 62, the original survivor benefit will be the special minimum of 82.5% of his PIA.) Again, her actual benefit will depend on when she claims it.

It will be important to coordinate the widow’s own retirement benefit with the survivor benefit, sequencing benefits to maximum advantage—that is, claiming one benefit and switching to the other. See this newsletter and use the Savvy Social Security software to analyze claiming strategies. A widow who remarries after age 60 may claim survivor benefits based on her former husband’s earnings record. If there is more than one deceased former husband, she may choose the highest benefit.

Surviving divorced spouses may also claim survivor benefits if they were married to the decedent over ten years and are currently unmarried (or remarried after age 60). The same switching strategies are available to surviving divorced spouses.

Source: Horsesmouth, LLC
Horsesmouth, LLC is not affiliated with Lane Hipple or any of its affiliates.