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One

The contribution rate is the same for military or civilian wages. Military members pay into Social Security at the same 6.2% rates as civilian employees do. The current rate includes military basic pay up to $168,600. A Medicare tax is levied on 1.45% of all wages.

Two

An important year to remember is 1957. Since 1957, active-duty military service or training earnings have been covered under Social Security. If you served in the military prior to this and didn’t pay Social Security taxes, the Social Security Administration (SSA) has added special credits to your earnings record that may help you qualify for benefits or increase your benefits. See below for more coverage details.

Three

Qualifying veterans can receive both Social Security disability benefits and Veterans Affairs (VA) disability benefits. While you’re eligible to receive both at the same time, you must apply for each benefit separately. You may qualify for other benefits as well, such as Medicare and Tricare, depending on your circumstances.

Four

You may qualify for expedited processing. Since 2014, the SSA has prioritized applications from those with 100% Permanent and Total (P&T) disability ratings from the VA. You must identify as a “Veteran rated 100% P&T” and submit a VA-rating notification letter with your application.

Five

Disabling mental or physical health injuries may also qualify for expedited processing. If you were wounded during active duty on or after October 1, 2001, you can apply for expedited application processing. To qualify, you must indicate on the application that your condition is a result of active duty.

Six

You can continue to work and get retirement benefits. You can retire as early as age 62, but if you do, your Social Security benefits will be permanently reduced. If you continue to work, there are limits on how much you can earn without losing some, or all, of your retirement benefits. Talk to your financial professional or tax adviser to determine your best course of action.

Seven

Social Security also provides coverage for disabilities. Many veterans with severe disabilities don’t realize that they may be able to receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). If you’re unable to perform substantial work because of your disability, you may wish to apply for benefits. 

Eight

You can apply for disability benefits while still receiving pay. Active-duty status or receiving military pay doesn’t necessarily prevent payment of SSDI benefits. Active-duty servicemembers who continue to receive pay while in the hospital or on medical leave should consider applying for disability benefits if they’re unable to work due to a disabling condition. 

Nine

Your family may also be eligible to receive SSDI benefits.  Here are the eligibility requirements:           

  • Your spouse, if they're age 62 or older.         
  • Your spouse, if they're caring for a child of yours who is younger than age 16 or has a disability.       
  • Your unmarried child (including an adopted child or, in some cases, a stepchild or grandchild) younger than 18 (or 19 if a full-time student).           
  • Your unmarried child, age 18 or older, if they have a disability that started before age 22. The child’s disability also must meet the definition of disability applied to adults.

Ten

How do I apply? To apply for your Social Security, SSDI, or SSI benefits, you may contact 1-800-772-1213 to request an appointment, or apply online at any time on the SSA’s website (ssa.gov). 

Does my service count toward my Social Security benefits?

While active-duty earnings have been covered since 1957, inactive-duty service in the armed forces reserves (such as weekend drills) has also been covered since 1988. 

Under certain circumstances, special extra earnings for periods of active duty from 1957 through 2001 can also be credited to your Social Security earnings record. If you were on active duty:

  • From 1957 through 1967, the SSA will add the extra credits to your record when you apply for Social Security benefits.
  • From 1968 through 2001, you don’t need to do anything to receive these extra credits; the credits were automatically added to your record. 
  • After 2001, there are no special extra earnings credits for military service.

 

Talk to your financial professional to help you make the most of your Social Security benefits.

 

All information sourced from ssa.gov. 

All information provided is for informational and educational purposes only and is not intended to provide investment, tax, accounting or legal advice. As with all matters of an investment, tax, or legal nature, you and your clients should consult with a qualified tax or legal professional regarding your or your client’s specific legal or tax situation, as applicable.

The preceding is not intended to be a recommendation or advice. 

This information does not take into account the specific investment objectives, tax and financial condition of any specific person. This information has been prepared from sources believed reliable but the accuracy and completeness of the information cannot be guaranteed. This material and/or its contents are current at the time of writing and are subject to change without notice. This material may not be copied, photocopied or duplicated in any form or distributed in whole or in part, for any purpose, without the express written consent of Hartford Funds.

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