Worth trying to reach 40 social security credits?

[julie-cal]

I am a Canadian citizen. I worked in the U.S. from 2000 – 2008 on TN1s and earned 36 social security credits. I have been back working in Canada since 2008 and plan to retire in Canada (and continue working here until then).

I have tried my best to understand the totalization agreement versus WEP, but I am still a bit confused. It would be fairly easy for me to return to the U.S. to work long enough to earn the four credits that would bring me up to the 10 years/40 credits minimum, and then I would qualify for $900-ish a month in social security without needing the totalization agreement.

Would this put me in a better position at retirement? Would it mean that the WEP clawback would not apply to me because I have 40 credits whereas it would if I stayed at 36 credits and relied on the totalization agreement to get some social security?

I don't want to up and move to the U.S. for a year if it won't make a significant difference financially. But if it's worth it, then I will try.

Thank you.

[nelsona]

Actually WEP does not apply if you do NOT have 40 credits yet, so you may just be better off with 36 credits.

One of the requirements for WEP to kick in reaching 40 quarters.

If you figure you would have gotten $900 with 40 quarters (without taking into acount WEP), then assume you will get about 80% of this (and no worry about WEP: $720).


So it comes down to whether your WEP clawback (which is almost impossible to calculate) will be more than $180.

[nelsona]

40 quarters might be useful for MEDICARE in future, but you would need to get Green card anyways for that.

[calgary-alberta]

This forum is great. I learned a lot of things.