Ask Our Experts
By: Compiled by Carole Fleck; Source: AARP Bulletin Date Posted: 2006-01-11 12:53:00-05:00
The AARP Bulletin 's Ask Our Experts column provides answers to important questions affecting older Americans. Read below for this month's column, or review our archive of previously published questions and answers sorted by topic. (Note: Recent news or changes to regulations may affect the guidance offered in this previously published column.)
Submit your own question to the Ask Our Experts column via our easy-to-use online form.
Q. I am getting Social Security benefits based on my deceased husband's record. If I remarry, will I lose my benefits?
A. It depends on your age. If you remarry before you turn 60 (when widows' benefits can begin), you are no longer eligible for your former spouse's benefits unless the remarriage ends.
If you remarry after age 60, you can continue to collect your deceased husband's benefits as a widow or you can receive your current husband's benefits, whichever is higher. If you're eligible for benefits based on your own earnings and they are the highest, you will get those. —Expertise provided by Laurel Beedon
Q. I am an American and live abroad. My husband is not a U.S. citizen, and neither of us has worked in the United States long enough to accrue Social Security benefits. We hope to move to California but are concerned we won't be able to afford health insurance. As a U.S. citizen, am I entitled to sign up for Medicare?
A. Yes, you can enroll in Medicare if you are age 65 or older and reside in the United States. But your husband, who is not a U.S. citizen, must live here for five years in order to enroll.
If you are Medicare age when you move back, apply immediately to avoid penalties (higher premiums) for enrolling late. You can get an application from the U.S. embassy or consulate nearest you.
Individuals who are not eligible for Social Security benefits must pay the premium for Medicare Part A (for hospitalization). All beneficiaries pay the Part B premium (for doctors, and outpatient services). In 2006 Medicare premiums total $481.50 a month—$393 for Part A and $88.50 for Part B.
You can also enroll in a Medicare prescription drug plan, with an average monthly premium of $32. For more information, go online to www.medicare.govor to www.aarp.org. —Expertise provided by Keith Lind
Q. I'm leaving a job but keeping my 401(k) plan with that employer. My new company also offers a 401(k). Is it legal to have two of these accounts?
A. Yes, you can have more than one 401(k) plan. Many employers will let you keep your 401(k) money in their plan after you leave the company. But you will no longer be able to contribute to the plan or borrow from it.
You may want to consider transferring your 401(k) funds directly into your new employer's plan without incurring taxes or penalties. Or you may want to roll over the funds into an individual retirement account to keep your tax deferment and make it easier to track your investment.
To learn more, call the Federal Citizen Information Center toll-free at (888) 878-3256 and ask for its free publication "401(k) Plans" (Item 583L). Or write the center at Dept. 583L, Pueblo, CO 81009. —Expertise provided by Jules Lichtenstein
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