If you are near retirement you may be looking into what kind of social security benefits you are going to be eligible for. One of the things you may have come across is the Windfall Elimination Provision? This can affect the benefits that you are going to receive from Social Security. What is the Windfall Elimination Provision and how might it affect you? Read on to find out.

What is the Windfall Elimination Provision?

The Windfall Elimination Provision comes into effect when you have begun to collect social security benefits but are also collection a pension from an employer who did not pay social security tax when you were employed there. Since you qualify for benefits, this usually means that you were, at some time, employed by someone who did pay tax on your behalf.

Employers that do not play Social Security taxes are typically ones who are outside of the country or from a government agency. This can also come into effect if you performed federal service under the Cival Service Retirement System after 1956.

Exemptions to the Provision

You may be exempt from the provision if you fall into the following situations:

  • You are a federal worker and you were hired after December 31, 1983.
  • You were employed by a nonprofit employer that did not withhold Social Security taxes from your pay on December 31, 1983 but started after that date.
  • Your pension is for employment on railroads
  • Your non-taxes work was performed before 1957
  • You have 30 or more years of earnings under Social Security that are much more substantial than your non-Social Security earnings.

If you are having issues with your social security benefits or need assistance figuring out what you qualify for contact the elder law experts at Stano Law group.