SSA-US vs. SSA-Manila

[smo]

Last week I mailed off my preliminary SSA questionnaire to SSA Manila to get the ball rolling. In it I indicated the expected date to start receiving SSA ( Oct 2016 the month of my 62nd birthday) and all the necessary bank info for the direct deposit to go to my credit union in the US. Then yesterday had a chat with a fellow American expat who still has quite a way to go before retirement, I mentioned both my SSA application and also my plan to make a visit back to the states this summer (around August). He then asked why I didn't wait till I go there to apply on the spot.

His question got me scratching my head. True, I could wait till I get there and apply without mentioning my Thai residence. I just use my US address, that way I don't have to bother with the "Are you still alive?" report that US expat retirees have to do each year.

Is that kosher? I figure if pressed I could always say I spend a lot of time abroad, but still maintain an US residence. Could anyone weigh in the pros and cons of this scenario?

Originally I was thinking to get the SSA application done first in Thailand, then I don't have to worry about it when I make the trip home. I also plan to be there on the spot when the first "money drop" happens in October. Just to make sure...

Thank you much in advance.

[ubonjoe]

Moved to here.

You sent the questionnaire a little early. The earliest you can apply is 90 days before you turn 62.

It is also possible to apply on line if you have a US address to use when you do the registration for the website and use a mailing address for here for your mailing address. Manila will then contact you for telephone interview.

You could apply in the states and then change your address to here. If you use a US address you would need some kind of arrangement to get any mail you get from the SSA forwarded to you.

The once a year report is not a big thing to worry about. Just tick the boxes, sign it and mail it back.

If you maintain a US address you could have a problem when you turn 65 because you would be enrolled in medicare part B automatically. If your address is for here it is your choice to get it.

[Pib]

GN 02605.230 Foreign Address Used by a Beneficiary Abroad A. Use of a Foreign Mailing Address

A beneficiary must use a foreign mailing address if he/she will be outside the U.S. for more than 3 months unless the address being used is an APO/FPO address or an address for a representative payee who is remaining within the United States.

If the foreign address provided is in a country to which payments are barred or restricted additional development may be required.

[smo]

Thank you ubonjoe and Pib for the helpful info and the link. I really appreciated it!

[phuketrichard]

agree

If you maintain a US address you could have a problem when you turn 65 because you would be enrolled in medicare part B automatically. If your address is for here it is your choice to get it.

better off with a overseas address and only getting part A an saving $110 or so/month

also when u file ur tax's if ur using a us address u are not an expat ( and filing a 2555 form)

[BKKSnowBird]

agree

If you maintain a US address you could have a problem when you turn 65 because you would be enrolled in medicare part B automatically. If your address is for here it is your choice to get it.

better off with a overseas address and only getting part A an saving $110 or so/month

also when u file ur tax's if ur using a us address u are not an expat ( and filing a 2555 form)

I used my US address and did a 2555ez when I was teaching in Thailand. The IRS never questioned it.

[taxout]

"better off with a overseas address and only getting part A an saving $110 or so/month . . ."

First, a U.S./foreign address only affects automatic enrollment in Part B. Even if you have a U.S. address, you can opt out of Part B at any time (not to say that would be a good idea). And with a foreign address you can opt in.

Second, if you don't take Part B at first but later decide to enroll, after returning to the U.S. perhaps, there's a penalty that can easily offset whatever you saved by not enrolling at first, depending on your particular circumstances.

Third, if you don't take Part B at first, then in most cases you can later enrol only during January to March for coverage to be effective July 1. So, for example, if you move back to the U.S. in April 2017, in most cases you can't get Part B coverage starting till July 2018.

Fourth, even though Part B doesn't cover medical services in Thailand, it's nonetheless good and cheap coverage if you're hit by a major calamity like cancer, since you can still get medical services under Part B in the U.S. even though permanently resident abroad.

[gt162]

"better off with a overseas address and only getting part A an saving $110 or so/month . . ."

First, a U.S./foreign address only affects automatic enrollment in Part B. Even if you have a U.S. address, you can opt out of Part B at any time (not to say that would be a good idea). And with a foreign address you can opt in.

Second, if you don't take Part B at first but later decide to enroll, after returning to the U.S. perhaps, there's a penalty that can easily offset whatever you saved by not enrolling at first, depending on your particular circumstances.

Third, if you don't take Part B at first, then in most cases you can later enrol only during January to March for coverage to be effective July 1. So, for example, if you move back to the U.S. in April 2017, in most cases you can't get Part B coverage starting till July 2018.

Fourth, even though Part B doesn't cover medical services in Thailand, it's nonetheless good and cheap coverage if you're hit by a major calamity like cancer, since you can still get medical services under Part B in the U.S. even though permanently resident abroad.

You recommend signing up for Medicare A, B at 65, including Part D?

[taxout]

Certainly sign up for Part A, it's free. And if you don't sign up around your 65th birthday, you can only enroll in Part A later during that January-March period with coverage starting the next July 1. So don't neglect to enroll when you're 65.

For Part B, you need to make your own analysis based on your own circumstances, but I think in most cases signing up for Part B is the right decision: just calculate how the penalties will hit you if you wait till you're 70, say.

As to Part D, you can't enroll when you're living outside the U.S.

(All this assumes you've paid in Social Security for the required 40 quarters.)

Edited June 7, 2016 by taxout