Job Discussion Forums

[fraup]

My husband and I are both working and having income tax and social security taken out of our paychecks. Question: Can we get the Soc. Security contributions refunded when we leave Mexico, say in a year or so? I know the taxes can be used to offset US tax liability. thanks for any help.

[samizinha]

My understanding is that generally you can't get this money back, but in some cases you can file a petition with the government for permission to get it. I'll double check with one of my administrators and post next week.
Saludos! Sami

[MELEE]

Isn't it best just to think about this money as part of what you are giving back to Mexico for all it has given you?

[thelmadatter]

[MELEE]

Thema,

I definately plan on getting my AFORE money, I already have about 100,000 in there! You can get it back, some people say not until your 60 (so the question is do you have enough money to make it worth a trip to Mexico at 60 to collect it) others say you can transfer it to a like fund in another country through some of the international banks (this came from the mouth of a BBV Bancomer rep who was trying to drum up business)

But when someone comes to work in Mexico "for a year or two" then wants to get there IMSS money back? Granted, I myself wish there was an option to "opt out" of IMSS and just seek private health care with the money, but I also don't mind paying it and have taken advantage of it. (Actually I'm loving in now as my girls go to an IMSS daycare so I don't pay any additional money for daycare.)

Besides, we're exempt from US tax libility if we make less than 80,000 US abroad, Show me a EFL teacher in Mexico making more than US$80,000 a year and I'll show you some ocean front property in Arizona. (Sorry, my husband's taken a sudden interest in English idioms. Now if I can just get him to stop saying "in the night".)

[ls650]

[Cdaniels]

[fraup]

Thanks to all for the information. I also pay taxes in Mexico, which is no problem as Americans can use foreign taxes paid to offset some U.S. tax liability. But since I don't plan to retire in Mexico, it seems reasonable to get at least part of that money back. When I taught in Germany (for a US university) I paid into the US Social Security system, but if I had stayed more than 5 years I would have had to contribute to the German system as well.

What I should do, I suppose, is go to my bank and see what they say. Or maybe I could somehow assign it as a research project in my Business English class...

[MELEE]

fraup

Don't confuse seguro social with retirement money. While in the US "social security" means money for retirement. In Mexico the money you are paying for IMSS, isn't the money for your retirement. That's you're AFORE. Seguro can be translated as insurance, and the money that goes into IMSS (Instituto Mexicano de Seguro Social) pays to run the IMSS hospitals and clinics, recreational centers, stores, daycares, and a few other thingys. If you're concerned about getting your due, start taking advantage of the system and using the services.

But like Social Security the system is on the verge of bankruptcy, due to paying out pensions, but not the pensions of the workers who've paid into the system, but rather the pensions of the people who worked directly for IMSS and have a rediculously cushy benefits package.

As for your AFORE money you will most definately be able to get that back, though it may be a nightmare doing so, you won't have to retire in Mexico, but possibly take a vacation here to sign the papers to collect it.

[thelmadatter]

Ah yes... thanks for the clarification.

I agree that one shouldn't look to get IMSS money back... even if you never use the public health facilities or anything else, you paid for the RIGHT to use them. Therefore, you dont deserve the money back.

I was talking strictly about AFORE.

[aroha]

BUMP!!

Has anyone on this forum had any success with withdrawing their AFORE? I've been living in Mexico for 3 years and have a decent amount of money in the AFORE account, and I'm leaving Mexico in August with no plans of returning to live here.

My school's HR manager talked with an AFORE account manager and told me that I might be able to get the money out if I go to my local IMSS office and request my pension, which will obviously be rejected as I am not anywhere near the retiring age. Apparently, I need to request a letter that formally rejects my pension request. Then I should give that letter to the AFORE account manager, and within 6 weeks I should receive my AFORE balance. It sounds too good to be true but I am willing to go through the paperwork to try to get that money out of Mexico since I already have a small superannuation account in Australia and I'm going to set up another superannuation account when I move home to New Zealand.

Ready and waiting for some good news??!

[TheLongWayHome]

[geaaronson]

CDaniels
That is also my understanding. This was an arrangement made between Ronald Reagan and the Democrats back in the early 80�s when he gave away the 25% income tax cut. There was such a bad recession that followed and government proceeds dropped dramatically that they came up with the great idea of increasing SS withholding and using the excess to offset some of the government budget deficits.
I have never heard that policy had been rescinded. So yes, that is my understanding as well.
Those that are decrying SS future inability to pay subsequent generations their benefits are creating a straw issue. There is no SS fund that is used for future disbursements. SS currently is a pay now as you go. Those that are currently paying SS premiums out of the paychecks are paying for the retirees. In 30 years time we will have to deal with that problem, not now. Those that are making the biggest stink about this issue are those that never liked SS to begin with and would love to see it crippled or dead.

[geaaronson]

Just remember that in the US, you don`t receive any SS benefits until you have paid into the kitty for 40 quarters, I believe. And in the US you can`t cash out.