Also, in general the US pays SS to US citizens moving abroad. Are there any restrictions for GC holders (that would loose GC when moving outside of US)?
I grew up in CH as a Swiss citizen and moved to the US many years ago. I am on GreenCard in US. Most of my SS payments went to the US. However, I had a couple of years in CH. I heard that the US would add the CH SS years. Is this correct?
As far as I know, they operate independently from another.
However, if one gets socail benefits from a non US country than SS is reduced. So it may or may not pay to claim AHV.
Here is a calculator: https://www.ssa.gov/benefits/retirem…iaWepjs04.html
thanks for pointing this out.
I found this:
https://www.ssa.gov/international/Ag…/switzrld.html
When you apply for benefits. You may have some social security credits in both the U.S. and Switzerland, but not have enough to qualify for benefits in one country or the other. The agreement makes it easier to qualify for benefits by letting you combine your social security credits in both countries. For more details, see the section on " Monthly benefits ".
Does this mean that the US would count years contributed in Switzerland towards US SS history?
You only need about 40 quarters (10 years of full-time work) to be eligible for Social Security. More years doesn't = more money. Have you been there working full time for 10 years? If so, there's probably no point in trying to add Swiss years to US years.
In terms of payments, robBob is correct - the US applies what's known as the Windfall Elimination Provision (WEP). If applied, it reduces your SS income if you also receive income from other sources, such as a foreign pension.
Another thing to be aware of: If you are receiving a US pension whilst living abroad, note that SS is not considered "earned income". This means you cannot used the Earned Income Exclusion to reduce your US tax burden.
In terms of the Green Card, if you leave the USA for more than 12 months without notifying the immigration authorities, you might lose the Green Card.
I've been through this. US social security will credit you for years paid into the Swiss AHV, not the other way around, unfortunately. I worked 9 years in the US, and 30+ years in Switzerland. Swiss AHV doesn't recognize US social security payments so I have lost those 9 years, but you can fill out forms to claim benefits in the reverse case. Not a very equal agreement between the two countries.
thanks. Yes, I have 10+ years in US SS. I am assuming the more years (up to 35) will give higher payout. Although we probably are talking +/- $1000 a month.
The only way it “counts” is if you don’t already have enough quarters/credits. The income from Switzerland doesn’t factor into the calculation.
https://www.ssa.gov/benefits/retirem…rnational.html
SS doesn’t count your income from Switzerland as income for SS, because of course you weren’t paying SS for those additional 25 years.
Here’s a calculator to get a sense of your possible benefits with your 10+ years:
https://www.ssa.gov/benefits/retirem…piaApplet.html
There’s also a link on that page for the WEP, which you might find useful.
And another think that might help cover the US-Swiss agreement:
https://www.ssa.gov/international/Ag…d.html#monthly
May I tag onto this thread?
My Soc Sec will be higher than what I would receive from AHV - so given the WEP on the US side and reduction to my husband’s AHV on the Swiss side, currently it makes little sense for me to claim AHV.
But the recent kerfluffel over the future of Soc Sec has me worried (again). Which leads to my question: How long can you delay claiming AHV? A theoretical question, but if some years from now Soc Sec were to disappear...
Hi - how do I get the US Social Security office to recognize the Swiss AHV years? I have 9 years in the US (several years in UK and in CH). I would like to get to the 10 years at least to ensure I receive Social Security. Any links would be appreciated. Thank you
Contact your local SVA office and ask for the forms. They are quite exhaustive. For Kanton Zurich the office is here: https://svazurich.ch/
For U.S. social security applicants who have worked abroad, these are several relevant questions on the application:
Supplemental Information
Inside the US for 30 consecutive days or longer: Yes/ No
Worked outside the US: Yes/ No
Eligible for benefits under a foreign social security system: Yes/ No
Country where eligible for foreign social security benefits: _________
Applied or intend to apply under foreign country's social security system: Yes/ No
Agree with earnings history as shown on Social Security statement: Yes/ No
Other Pensions/Annuities
Ever work in a job where U.S. Social Security taxes were not deducted or withheld: Yes/ No
Receiving pension or annuity based on this non-covered work: Yes/ No
Pension or annuity based on government employment: Yes/ No
5 years at the moment:
https://www.credit-suisse.com/ch/en/…lt-202002.html
You have to register your intention no later than 1 year after attaining pension eligibility age.
Wondering about how much, percentage wise, your SS benefit got reduced due to WEP?
BTW. How does 401k taxation work if I returned to Switzerland?
Would this be part of standard double taxation topic? Or is there a treaty for 401k? Would I have to file a tax return in the US regardless for 401k distributions?
Just found this:
Q : Do you lose your Social Security if you abandon your green card (permanent resident) status or renounce US citizenship?
https://www.americansabroad.org/info…cial-security/
Would this be true if I moved to CH?
I understood the max it can reduce your benefit is by one half, i.e. 50%. Depends on a number of factors, but can be between 1%-50%.
Not sure what exactly you are asking. You still receive or are entitled to SS benefits if you leave USA or are not a citizen. Certain withholding tax may be applicable. If you live in most of the more civilised countries, esp. those with SS arrangement with USA then no problem receiving benefits. If somewhere like N Korea or Cuba you may have issues. I understood it was more to do how its paid, not that they can totally deny benefits.
I am reacting to this wording, in particular in red.
A: Once you have renounced US citizenship, you become a non-resident alien (NRA), and the rules for NRA's apply. While it is your responsibility to notify authorities of your changed status, this is generally asked in the questionnaire that Social Security beneficiaries have to submit annually.
As an NRA, it depends on your place of residence whether you can continue to collect Social Security in the long run. Depending on a combination of US bilateral agreements (or lack thereof), your current citizenship, and your country of residence, it can range from only a minor payment difference to having Social Security payments discontinued after being more than six months outside the US.
I f you have not been in the United States at any time during the six calendar months before your first month of entitlement, then to get your benefits started you must come to the United States and stay every hour of a full calendar month. For example, if you came to the United States on April 24, you could not leave the United States before June 1. This means that you would be present in the United States the entire month of May.
After you complete this visit for a full calendar month, there are two ways to continue receiving benefits. You can choose one or the other:
As mentioned, you are pretty safe with Switzerland having a SS agreement. The red you quote is a very generalised statement. I wouldn’t rely on that without getting into the details. It depends if it applies to you as earner, or perhaps to your NRA beneficiaries who may never have set foot on US soil. Also if you have citizenship of CH or most EU you are again covered.
Details in this SS publication. https://www.ssa.gov/pubs/EN-05-10137.pdf
www.ssa.gov/international/ AlienTax.html