A brief overview of how Spouse Annuities function in Railroad Retirement:
1. What the requirements to receive a spousal annuity?
2. What are the payouts on a spousal annuity?
3. What is the reductions in the spousal annuity with early retirement?
4. More…
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Disclaimer: This video 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.
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Understanding Spouse Annuities in Railroad Retirement
Railroad retirement benefits can often be complex and confusing, but they provide essential financial support for retired railroad workers and their families. For spouses of retired railroad workers, one vital aspect to grasp is the concept of spouse annuities. In this article, we will delve into what spouse annuities are, who qualifies for them, and how they are calculated.
A spouse annuity is a monthly payment made to the current or former spouse of a retired railroad worker. To be eligible for a spouse annuity, the marriage must have lasted for at least ten years and ended through death or divorce. In addition, the spouse must not be remarried and must be at least age 62.
The amount of the spouse annuity is typically based on a percentage of the railroad worker’s annuity. The percentage varies depending on the age of the spouse at the time of retirement. If the spouse is under the full retirement age, between 62 and 65, the annuity is reduced by a certain percentage. However, if the spouse is over the full retirement age, the annuity is paid at a higher percentage.
It’s important to note that a spouse annuity is subject to a maximum amount. Currently, the maximum monthly amount is equal to approximately 50% of the railroad worker’s annuity. This means that if the worker’s annuity is $2,000 per month, the spouse annuity cannot exceed $1,000 per month, regardless of the spouse’s age.
If the railway employee invested in additional annuity credits or qualified earnings during their career, this can also impact the spouse annuity. These additional credits can increase the worker’s annuity amount, and consequently, the spouse’s annuity amount as well.
It’s worth mentioning that there are scenarios where a spouse may be entitled to both a railroad retirement annuity and a social security benefit. This is known as dual entitlement or a dual benefit. In such cases, the spouse annuity may be reduced or offset by a certain amount. The offset is calculated based on the spouse’s earnings and the amount of their social security benefit.
Applying for a spouse annuity in railroad retirement is relatively straightforward. The retired railroad worker initiates the process by filing an application for their own annuity. As part of this process, they will provide information about their spouse, including their name and social security number. This allows the Railroad Retirement Board (RRB) to determine the eligibility and amount of the spouse annuity.
Understanding spouse annuities in railroad retirement is crucial for retired railroad workers and their spouses. By being aware of the eligibility requirements, calculation methods, and potential offsets, spouses can plan their retirement finances accordingly. As with any complex financial matter, seeking guidance from the Railroad Retirement Board or a financial advisor with expertise in railroad retirement can provide valuable assistance in navigating the intricacies of spouse annuities.
Wouldn't the spousal deduction of 35% and 25% be a deduction based on the calculation of the RR reduced benefits? In other words 35 and 25% of tier 1 at $1400 and tier 2 at $800 as opposed to a deduction assessment based on full retirement age?
I am currently receiving railroad retirement benefits.Can my husband get aspousal annuity now at 65 and switch at 70 with delayed ss credits to his own soc sec.
RRB are nothing but a rip off. After 35 years of service, instead of paying my $3697 per month they are only sending $ 599.00 per month. They've got people in Illinoi who has no idea what they're doing. I stopped working at age 60 because I couldn't anymore lift my right hand, beside my total hip replacement. I see the only way to get them correct that is to hire a couple of lawyers. RRB will rip you off.
I was married for two years to a woman that has RRR Tier ONE AND TWO SHE HAS. IM 62 on SSD. IM GETTING A DIVORCE FROM HER , am I eligible for her tier 1 tier 2 or anything from her ?? Thank you
Is there a requirement of years that you have to be married before your spouse can have retirement benefits
30/60 is such a huge deal and no penalty. Doesn’t seem worth the hell working for RR if you won’t have 30/60.
My spouse is 16 years younger than me, and also works for a Class I railroad. We have a child that will be 12 when I retire. Will the child get any kind of annuity until she is 18 years old?
I retire in 2 years 2 months and 18 days – at 60/30 – not that I'm counting (810 days)
Thank you.
Great video!
My husband has 21 yrs on the RR, and has been laid off over a year now, don't expect they will call him back. Question: I heard somewhere IF HE DIES before he collects RailRoad Retirement, whether that be at age 62, 65 or 67 yrs old, I (the spouse) would be cut off and can not receive any spousal benefits .Is this True?
A friend of mine 65 years old was married to a RR engineer for 7 years then, got divorced for 3 years, then remarried the same engineer for another 7 years before divorcing for the second time . He remarried and finished his RR career with 35 years of service. Currently his second wife is collecting RR Retirement on his service record. Being that my friend was married for a total of 14 years to a RR engineer while he was in service, can she claim spousal benefits. Thanks in advance to anyone who can help clear this up.
My husband is 52 and has 30 years employment with the RR. He is still working. I am 60 and we have been married 30 years. Can I collect my spousal benefits now, or do I have to wait until he is 60?
My spouse and I are both 67 (full retirement age). I know that if I delay my retirement until age 70, my tier 1 benefit will increase up until age 70. However I seem to remember reading that the spouse's tier 1 benefit will be frozen at my full retirement age, and the spouse does not receive the increased benefit (tier 1) of delayed retirement credits. Is this true ?
I am currently collecting railroad retirement benefits. Can my wife collect railroad retirement spousal benefits at age 62 and then switch over to her own social security at full retirement age ?
What happens if your wife works a career for non railroad companies? any scenario she would receive any social security distributions at age 67?
John, you always say “ if you reach 60 and have 30 years”. What if you are older than 60, and get your 30 years, say between 62 to 70. Does that example get the same benefits as a person who gets 30 years at 60 years?
If I have my 30/60 and my wife is 9 years younger, can she start her "reduced" annuity at an earlier age?
Does anyone know if spouse works for the state "calpers" will she be able to collect both railroad retirement and calpers?
Thank you! Thank you!!!
Do you have a phone number sir?
I only have 10 yrs so far +Furloughed for 3 yrs. And now I'm dismissal. I plan on working till 67 or more. How dose this effect me and if I get married during that
What happens if your spouse also works for the railroad?