Tag: social security

Categories
Legal Social Security Disability

Social Security Disability Law: A Beginner’s Guide

Social Security Disability Law A Beginners Guide

The Social Security program, along with disability benefits, has been the subject of an increasing focus in the media. People often have questions about the law concerning Social Security, and how it and its associated benefits operate. This is due in no small part to how confusing the laws are surrounding disability and benefit plans.

Many people have pointed out how frustratingly ironic it is. That while the Social Security Disability Law was initially created to improve the lives of the disabled, but the seemingly endless red tape and bureaucratic processes that must be followed make the application incredibly challenging.

What Exactly Is The Social Security Disability Law

The Social Security Disability Law is a federal law that lays out the rules that dictate who can receive disability benefits from the federal government. If you are determined to meet the requirements, you are then eligible to receive the benefits. So, the state in which you live is obligated to meet the requirements needed for your comfort and quality of life.

One of the challenges lies with pursuing the correct benefits, as the criteria for each are different. Failing to meet them will result in rejection or denial of benefits. The two types of benefits are:

  • Social Security Disability Insurance: These benefits require the applicant to prove they have a disability, and that before that they paid into the Social Security System.
  • Social Security Income Program: These benefits require that the applicant is over the age of 65, or be blind, or have a disability, and have low income. These benefits do not require that the applicant prove they paid into the Social Security System prior.

The next hurdle that often poses a significant challenge for some people, is proving the disability. Proving disability is often where people need to work with a disability lawyer. They can help you establish your disability in a legally tangible way. This way you can get the benefits you deserve.

Applications And Appeals

When considering an application for benefits there is a basic process that must be followed, as well as for disputing a decision you find unfavorable.

First, you’ll submit your initial application to the Social Security Administration. This can be done in several ways including by phone, in person, or online. This is a long procedure that involves submitting much of the documentation needed to establish eligibility. Only about 30% of applicants are approved in this manner. If your case is among the 70% of denials, then you can dispute the decision.

This dispute process has four distinct stages, which are:

  • 1 – This is an initial reconsideration that requires you to submit more documentation to support your case, if denied you advance to Stage 2.
  • 2 – Hearing with an Administrative Law Judge, if denied you advance to Stage 3.
  • 3 – Appeal to the appeals council, if denied you advance to Stage 4.
  • 4 – Bring your case before a federal court for a final determination.
Categories
Financial Legal Savings Social Security Disability

The Difference Between 401k vs. Social Security

401k vs. Social Security

Many people wonder which is better to rely on, Social Security payments or your 401k income. What they don’t realize is that you can receive both Social Security as well as 401k income. Whatever income you receive from your 401k plan will also not affect your Social Security benefits. This is because it is considered income from a non-wage source.

Most workers count the days until they can retire at full retirement age, 66 years old. They frequently begin receiving Social Security benefits within the first few months of their retirement, as well as their 401k income. Some will retire as early as 62 in exchange for lower monthly benefit payments from Social Security going forward. At the other end of the spectrum, some delay collecting Social Security until the latest allowable age of 70. This means they reap the benefits of much larger monthly payments in return.

Why 401k Income Has No Effect On Social Security Payments

One of the foundational tenets of Social Security is that the credit system for qualifying for benefits is based on taxable wages. These wages are the ones that you earned during your highest-paid 35 years of work. Your contributions to your 401k are made with wages paid to you by an American company. Fortunately, they have already paid the Social Security taxes on those wages.

Many people contribute as heavily as possible to their 401k, however, under the impression that those contributions are tax-free. Well, they are, sort of. Those contributions can be made free of income tax imposed by federal and state entities. However, not by contributions required by the Federal Income Contributions Act, or FICA.

No matter what, your wages will always have the tax for Social Security paid before anything else can reduce your income level. So you do still pay some taxes, up to a preset threshold that is determined by the IRS.

The Difference In Dollars

So you are getting close to retirement age, or maybe just planning well ahead to ensure your comfort, and you want to get down to numbers on what retirement is going to look like. Well, there are a few scenarios centered around when you retire. You can begin collecting Social Security at 62, the full age of 66, or as late as 70. While you might get to begin enjoying retirement early, the change in benefit amounts by delaying can be incredible.

Using the top-end numbers for 2021, the highest monthly benefit when retiring at 62 is about $2,300 while waiting until 66 gives a monthly payment of more than $3,100. And for those waiting until 70, they can collect a massive benefit of nearly $3,900.

If you are planning on retiring early, your 401k income can certainly supplement your Social Security income without affecting it. On the other hand, if you have a few years to go, you may still be able to start taking life a little easier by utilizing your 401k income while you delay Social Security collection until you get the maximum benefit.

Categories
Family Legal Senior Social Security Disability

How to Prove Your Disability To The SSA

social security disability

When seeking to qualify for either SSDI or SSI, you will be required to prove your disability. Even when the claim seems like it would be obvious and straightforward. You must remember that only about 30% of all claims initially presented to the SSA are denied. This is one reason why Social Security claims can be so frustrating if you are pursuing it by yourself. Which is why many people opt to work with an experienced Social Security disability lawyer.

Disability As Defined By The Social Security Administration

The Social Security Administration has a very clear definition of a disability. If you are only partially or temporarily disabled, you will not be able to claim SSDI or SSI benefits. So, you must show that:

  1. You cannot do the work you did previously, due to the disability
  2. You are unable to do change occupations or do other work due to the disability
  3. The disability will last longer than a year or is anticipated to result in death

If you are able to meet these criteria, you will not be able to engage in any substantial gainful activity. This qualification can be revoked if you earn too much income in a month.

Collect And Organize Your Medical Records

Common claim denials result from the failure of the applicant to provide sufficient medical documentation as evidence of the disability. Spending some time developing your medical documentation can help you prove your disability during the first review period.

The Social Security Administration will need to see records of your disability going back to when it was first discovered. This is known as your disability onset date. This can be difficult to determine for some conditions, so leverage family and friends if needed.

Your doctors can be a priceless resource. Your medical care team should be able to provide you with the records or documentation you need. If necessary, they may also be able to furnish a mental health assessment to be presented to the SSA. Make sure you adhere to your doctor’s directives for treatment as well. If you don’t, the SSA may deny your claim for lack of consistent treatment.

Make Sure You Meet The Requirements

Any disability can be challenging to prove. This can be especially true for those seeking benefits for mental illnesses or conditions. Some will be significant or severe enough that the Social Security Administration will simply grant the benefits. The conditions that qualify someone for SSDI or SSI benefits are detailed in the Blue Book. The Blue Book contains all of the criteria for qualification based on medical diagnosis.

Some conditions may be severe enough that the SSA will only need limited medical documentation. For example, arthritis, asthma, and heart disease. Some conditions will require more rigorous proof, such as mental disorders. Mental disorder claimants will need to meet various criteria that are designed for their particular mental disorder category, such as anxiety or psychosis.