• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Law Offices of Kobrick and Moccia

Long Island Estate Planning Attorneys

ESTATE, TRUST PLANNING &
ELDER LAW INFORMATION CENTER

Call Now: (800) 295.1917

  • Attend Our Free Webinars
  • Home
  • Our Firm
    • About Our Firm
    • Client Testimonials
    • Meet Our Team
  • Services
    • Blended Family Planning
    • Elder Law
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Guardianship
    • Medicaid Planning
    • Nursing Home Planning
  • Resources
    • Articles
    • Elder Law Resources
      • Commack Elder Law
      • Elder Law Reports
      • Harrison Elder Law
      • Hauppauge Elder Law
      • Rockville Centre Elder Law
      • White Plains Elder Law
    • Estate Planning Definitions
    • FREE Estate Planning Worksheet
    • FREE Seminars
    • Frequently Asked Questions
      • Elder Law
      • Estate Planning
      • Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Is My Estate Plan Outdated?
    • Legacy Wealth Planning Consultation Form
    • Medicaid Resources
    • Probate Resources
      • Harrison Probate
      • Hauppauge Probate
      • Long Island Probate
    • Probate Checklist
    • Special Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
    • Top Estate Planning Techniques
  • Communities We Serve
    • Nassau County
      • Garden City
      • Lynbrook
      • Malverne
      • Rockville Centre
    • Suffolk County
      • Commack
      • Dix Hills
      • Hauppauge
      • Nesconset
      • Smithtown
    • Westchester County
      • Harrison
      • Mamaroneck
      • Rye Brook
      • White Plains
  • Webinars
  • BLOG
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
Home » Retirement Planning » Retirement Planning News: Interest-Free “Loans” Eliminated

Retirement Planning News: Interest-Free “Loans” Eliminated

February 18, 2011 by Anthony Moccia Leave a Comment

There was some relatively good news to report as 2010 gave way to 2011, and of course at the top of the list was the extension of the Bush era tax cuts. And though the debate will be retooled for the next election cycle, estate planning professionals were relieved if not overjoyed to see the estate tax rate reduced and the exclusion increased.

Other changes included in the tax measure that impacted estate planning include an increase in the gift tax exemption to $5 million along with a decrease in the rate to 35% to match the estate tax. The generation-skipping transfer tax also was altered to match the estate and gift taxes with a $5 million exemption and 35% rate. And the estate tax is now portable so the unused exemption of a deceased spouse can be used by the surviving spouse.

In addition to these changes that could be described as positive there was a rule passed by the Social Security Administration that eliminated a useful opportunity that previously existed. For those who are not aware you can choose to accept a reduced Social Security benefit when you’re 62 years old. Your full retirement age varies depending upon the year that you were born, but if you were born between 1943 and 1954 that age is 66. If you were born within this span and you chose to delay receiving Social Security benefits until you turned 70 you could be eligible for delayed retirement credits that would increase your annual benefit by 8% per year or 32%.

It had been possible for one to accept a reduced benefit at age 62 and receive these payments until you reach 70 years of age. At that point you could withdraw your original application for Social Security at the reduced rate and pay back everything you had received. You then reapply as a 70-year-old and receive your maximum benefit. While you were receiving the reduced benefit you could have invested it and turned a profit before you had to pay it back.

Due to a new rule that was passed on December 8th this “interest-free loan” will no longer be available. Applicants will only be allowed to withdraw their application for Social Security within a 12 month period after originally filing and they may only do this once, effectively putting an end to what was once a very interesting opportunity.

  • Author
  • Recent Posts
Anthony Moccia
Anthony Moccia
Anthony Moccia is an attorney and partner at The Law Offices of Kobrick & Moccia.His practice focuses on estate planning and elder law.He is a member of the New York State and Nassau County Bar Associations.He frequently presents free seminars on wills & living trusts to area residents and his seminars are said to be “informative, entertaining & easy to understand.”
Anthony Moccia
Latest posts by Anthony Moccia (see all)
  • “Last Will and Testament” Origin - April 1, 2021
  • Do I Need a “Durable” Power of Attorney? - April 2, 2020
  • Joint Tenancy Pros and Cons - March 31, 2020

Filed Under: Retirement Planning Tagged With: Elder Law, Retirement Planning, Social Security

Other Articles You May Find Useful

Harrison retirement planning attorneys
When Should I Start Accepting Social Security Retirement Benefits?
Harrison retirement planning
Top 5 International Retirement Destinations
retirement
Retirement Planning–Your Destination Matters More than You May Realize
Law Offices of Kobrick and Moccia
Planning for Retirement
Retirement Tax Planning
Retirement Tax Planning
Law Offices of Kobrick and Moccia
Retirement Planning – How Much Will I Get from Social Security?

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Law Offices of Kobrick and Moccia

Download our free estate planning worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

GARDEN CITY

1305 Franklin Avenue Suite 170
Garden City, NY 11530
United States (US)
Phone: (516) 248-9500
Fax: (516) 248-7606

HAUPPAUGE

150 Motor Parkway Suite 401 (Regus)
Hauppauge, NY 11788
United States (US)
Phone: (631) 941-3400
Fax: (516) 248-7606

HARRISON

600 Mamaroneck Avenue, 4th Floor
Harrison, NY 10528
United States (US)
Phone: (914) 701-0777
Fax: (516) 248-7606

MAP

kobrick_sidbr_map

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM

Footer

footer-logo
  • Facebook
  • LinkedIn
  • Twitter

The information on this Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Kobrick and Moccia, Attorneys at Law. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

Law Offices of Kobrick and Moccia
Attorney Advertisement
© 2023 American Academy of Estate Planning Attorneys, Inc.