You can't put SS into an IRA without some penalty as an IRA has to be from “earned income”, SS is not earned income, it is reported on a 1099 not a W-2.
I have been looking for ways around it wanting to put SS into a Roth for my 4 year old daughter (who gets SS based on my full retirement age).
I turned 62 this year and took the money. Used the 1st two checks for a month long vacation. But then SS is not my primary retirement.
Good on you, where's_the_Outrage?. I am in similar circumstances (re. young dependents).
Regards,
Did you get retirement health coverage thru your employer ?