Pricey Rusty: I’m 57 years outdated, was born within the UK, and since 1988 have labored within the US. I’ve all the time paid US taxes and Social Security. For the final 20 years, my annual earnings has sometimes been effectively north of $100K. In recent times I’ve made voluntary funds to the UK Nationwide Insurance coverage system seeking to declare a retirement profit from the UK in addition to from the US. My concern is that if I declare the UK profit, this may have an effect on my US Social Security declare. Any perception you possibly can share can be appreciated. Signed: Fearful
Pricey Fearful: In case you have 30 or extra years of U.S. employment the place you paid into Social Security by way of payroll taxes on “substantial” earnings, your U.Ok. pension is not going to have an effect on your U.S. Social Security profit whenever you declare it. Social Security’s definition of “substantial” earnings is completely different for annually however, typically, if you happen to labored full time within the U.S. and paid into Social Security by way of payroll taxes since 1988, the so-called Windfall Elimination Provision (WEP) received’t have an effect on your US Social Security advantages.
So, the underside line is that this: In case you have contributed to U.S. Social Security from “substantial” earnings for a minimum of 30 years, your Social Security profit is not going to be affected by your U.Ok. pension; you probably have lower than 30 years of contributions to SS, it can. As it’s possible you’ll know, you can not gather your U.S. Social Security till you might be a minimum of age 62, however if you happen to declare at that age your profit quantity can be lowered by 30%. You’ll attain your full retirement age at age 67, and that’s the level at which you’re going to get 100% of what you’ve earned by working within the U.S. – topic to WEP discount solely you probably have lower than 30 years of contributions to Social Security.