Ask the Experts

Q: My husband is a truck driver and worked as a union employee for over 20 years. He’s still working at age 70 for a nonunion trucking company in town. He wants to collect his pension from his former employer but was told he must retire or get a different type of job. Is this legal?

A: Yes. Unionized plans can suspend paying your husband’s benefit if he works in the same region and in the same industry, even if it’s for a nonunion company. But there is an exception for older workers. Starting April 1 of the year after a person turns age 70-1⁄2, pension plans are no longer allowed to withhold benefits. At that point, your husband can continue working and resume his union pension benefit.

Q: I am 63 and thinking about retiring from my full-time job and working part time elsewhere. Can I do that and still collect my Social Security benefits?

A: Yes, but if you have substantial earnings, your Social Security benefits will be reduced. In 2008, people ages 62 to full retirement age can earn up to $13,560 and still receive their scheduled Social Security benefits. If you earn more than that but less than $36,120, Social Security withholds $1 in benefits for every $2 you earn. Individuals whose income is above $25,000 and joint filers with combined incomes of more than $32,000 might have to pay taxes on up to 85 percent of their  benefits. To calculate such payments, go to the Social Security Administration online at www.ssa.gov/OACT/quickcalc/early_late.html.

Q: Do I pay any fees for my 401(k) plan? My statements don’t mention fees, so I’m curious.

A: Yes, participants in 401(k)s do pay administrative and investment fees. The largest fees—for managing the plan—aren’t listed on your statements. Because employees tend to be in the dark about these fees, the U.S. Department of Labor has proposed regulations requiring that workers have access to information on the costs associated with their 401(k) plans . For now, ask your plan administrator. For more, get the pamphlet “A Look at 401(k) Plan Fees” by calling toll free 1-866-444-3272. Or read our “Fees, Fees, and More 401(k) Fees.”