The United States has social security agreements with many countries around the world, including the Totalization Agreement. This agreement helps ensure that people who have worked in both the United States and another country can receive their full social security benefits.
What is the Totalization Agreement?
The Totalization Agreement is a social security agreement between the United States and certain foreign countries. It helps people who have worked in both the United States and another country to avoid paying social security taxes twice and to ensure they receive their full benefits.
The goal of the agreement is to protect the social security benefits of workers who move between countries with different social security systems. It also helps promote international trade and investment by reducing the burden of social security taxes on employers and workers who do business across borders.
Which countries have a Totalization Agreement with the United States?
The United States has Totalization Agreements with 30 countries around the world, including Australia, Canada, France, Germany, Japan, South Korea, and the United Kingdom. In order to qualify for protection under the agreement, a worker must have earned enough credits in both the United States and the other country.
How does the Totalization Agreement work?
Under the Totalization Agreement, workers who have earned credits in both the United States and the other country can combine those credits to qualify for social security benefits in both countries. This means that they will not lose any social security benefits because of their time working in another country.
For example, a worker who has earned 20 credits in the United States and 20 credits in Canada would be eligible for social security benefits in both countries. Without the Totalization Agreement, that worker might only be eligible for benefits in one country, depending on their time spent working in each place.
Who benefits from the Totalization Agreement?
The Totalization Agreement benefits workers who have moved between countries or who plan to do so in the future. It also benefits employers who do business across borders by reducing the burden of social security taxes on their employees.
If you have worked in both the United States and another country, you may be eligible for social security benefits under the Totalization Agreement. To learn more, visit the Social Security Administration`s website or speak with a qualified financial advisor.