Tom, I read your reply regarding maximun Social Security Benefits and after reading that you were also a Federal employee I knew I'd get a better answer to a question which has had me scratching my head for the past few years.
I retired from Federal Service in May 2009 folowing just under 30 years of service. I took regular retirement following a lenghty hospital stay. I had 12 years of non-government work prior to my entering government service with SS earnings exceeding the the SS earnings test each year. I understand I'm sunject to the WEP, but need to confirm that there is a limit to the amount my benefit can be reduced.
Thanks for any information you can orovide.
Bob Korsu

Tom. I am self employed and have as an employee my wife. I am a sub chapter S corp and pay about 1/2 of our real earnings as wages so as to avoid the self employment tax on the other 1/2. I have the luxery of choosing how much are my earnings and how much are my wifes. My wife is 60 and I am 54 so she is going to reach retirement age before me. I have been weighting the bulk of the pay to her (for about the last 5 years) for this reason. My question is how do I determine the optimal amount to pay as wages subjected to SS tax to my wife and myself keeping in mind the more I claim as wages the more I will have to withold each month. The total amount of earnings I have to work with is approx 100k each year. We are both in reasonably good health and I intend to work at least another 10 years in my current business. I could increase her earnings to around 80k and still pay myself enough to be eligible for my group health insurance policy. Are there social security experts that help with this kind of situation?

Thanks for your response
Steve

Eagle Colorado
04/17/11

My guess is a lot of people aren't commenting here because your post is pretty insensitive.

Because you are an insider to the system, I know it all seems so easy to understand...and, only people who need professional help would make such inquiries. But, the truth is, Social Security (and all Fed programs) are intimidating to people. The literature that is put out is virtually always incomplete, not contextual...and, certainly not geared to helping people understand. When I tried to help my mother understand what she should do as she was set to retire...it took her like 3 visits with representatives, and way too many Google searches for me to paint a picture of what the best options were for her.

I can't help but think you have piled on just a little more intimidation with your 'looking down your nose' approach to this issue. I think a person would naturally need to see a psychiatrist considering the awful way that the whole system is administered. -Case in point, why did 5,000 people (Men or Women) have to call (you alone...how many other SS employees had 5,000 poeple ask the same question) and ask such a simple question. Maybe men are more willing to be confrontational and actually demand an answer.

It's a shame you didn't work in the literature department so you could have made this all the more clear to everyone 25 or 30 years ago.

Just sayin