Often the file and suspend strategy goes hand in hand with the strategy of restricting. If you have not yet reached full retirement age, the only option for stopping social security payments is to apply for a withdrawal of benefits, a. By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. I wanted to claim my exhusbands benefits and freeze my benefits until a later time. If you are already entitled to benefits, you may voluntarily suspend retirement benefit payments up to age 70 beginning with the month after the month when you make the request. Is it ever smart to suspend your social security benefits. How to use social security after the fileandsuspend rule. However the social security agent told me that i could not do it because my spouses amount was smaller so i could not file and suspend. Fiftytwo percent of married social security beneficiaries receive at least half their total income from social security. If you have not yet reached full retirement age, the only option for stopping social security payments is to apply for a withdrawal of benefits, a more formal process that, unlike a suspension, requires you to repay social security the benefits you have received to date. But note, if you file, and receive any checks, you must return any benefits you receive, likewise, once you file, you have one year to suspend.
Social security file and suspend blog jill on money. For more information about these changes, contact social security at 180077212 tty 18003250778. You need to watch this video and then share it with. In other words, theres no point in filing and suspending, because both benefits will stop. At the social security office today, we were told that i cannot file and suspend, because i am entitled to more than 50 percent of my husbands current benefit when i. The nowdead file and suspend social security strategy. Social security questions and answers franklin templeton. Suspend is the shorthand name for a strategy where one spouse files for his or her social security benefit and then immediately suspends receiving the benefit.
Last call to pursue social securitys file and suspend. The file and suspend strategy, also referred to as voluntary suspension, or claim and suspend, was an option available to social security beneficiaries until april 29, 2016. Social security special report nixing that strategy isnt likely. Social security file and suspend changes may 1 youtube. I want to take an opportunity to explain one way to do that. Even though you cant get the advantages of the file and suspend strategy anymore, suspending your social security benefits still makes sense in some cases. Social security benefits for a nonworking spouse canandaigua. If you are caring for a child who is under 16 or disabled, or if you are entitled to social security disability payments, you can file a restricted. If the worker wants to delay collecting benefits in order to build an enhanced benefit for himself, then he would file and suspend, although this option is available. The fileandsuspend strategy, as outlined above, will no longer work after may 1, 2016. In that scenario, the higher earning spouse would file for earned retirement benefits when he or she reached full retirement age, but then suspend those benefits.
Better yet, you can apply from the comfort of your home or office at a time most convenient for you. I wanted to take advantage of the file and suspend rule. Can i file and suspend for social security benefits online answered by a verified social security expert we use cookies to give you the best possible experience on our website. Keep in mind that anyone else getting a benefit that is tied to yourssuch as a spouse or dependentwill see their benefit suspended as well. One spouse lets say a husband reaches full retirement age the age at which you are entitled. First lets decipher what this means and then well determine if its a good strategy for you. As part of the bipartisan budget act of 2015, congress eliminated the loophole that made file and suspend possible. This is a strategy you can use to allow your spouse or a dependent child to start claiming benefits while you continue to grow them. Say goodbye to the social security fileandsuspend strategy a budget bill is putting the brakes on a lucrative strategy to maximize social security benefits. If you apply for benefits and we have not yet made a determination that you are entitled, you may voluntarily suspend benefits for any month for which you have.
He can still choose to voluntarily suspend his benefit after his full retirement age, but if he does suspend his benefits, marias spousal benefit will also be suspended. Now, you can still suspend benefits, but your spouse cant receive a spousal benefit while your benefits are in suspension. One of those strategies is the ability to file and suspend a benefit. Essentially, it is a way for married couples to get the combined effects of delayed retirement credits and spouses benefits. Due to social security rules that became law in november 2015, the file and suspend strategy is no longer available for couples. File and suspend social security loophole closing fast.
There is a little known fact about social security called the file and suspend tactic. Maximize benefits with file and suspend social security. At that time, a person must file for social security and actually receive benefits in order for a. You might suspend benefits if you dont need social security income to pay living expenses, and you want to be eligible for a. Can i file for social security benefits at age 63 and then. Do the recent changes in social security rules allow you. Retirement benefits social security administration. Todays column addresses filing and suspending at full. Under the new law, the social security administration ssa says you can still voluntarily suspend benefit payments at your. Say goodbye to the social security fileandsuspend strategy. If you claim benefits before your full retirement age and keep working, social security withholds a portion of your benefits if your earnings exceed certain amounts, a figure known as the exempt. If you are receiving social security retirement benefits and you change your mind. The social security administration is taking away tens of thousands of dollars in benefits on may 1.
It worked for those who suspended benefits on or before april 30, 2016. The file and suspend strategy was useful for some couples, but its applicability was often exaggerated by financial columnists. I filed for a spousal benefit upon turning 66 in may 2016. Theres no need to drive to a local social security office or wait for an appointment with a. Changes brought about the by the bipartisan budget act of 2015 have rendered some or all of the information in this article obsolete in an earlier article on restricting your application for social security benefits to spousal benefits only, i referred to the strategy called file and suspend. The file and suspend strategy was born as a byproduct of the 2000 senior citizens freedom to work act. File and suspend, also known as claim and suspend, was a maneuver for married couples to maximize benefits. File and suspend was a popular method used by married couples to get the most out of their social security benefits. Previously, the file and suspend strategy allowed spouse a, at full. I was trying to understand what was meant by file and suspend, and it doesnt seem applicable to me.
I know there are changes to the fileandsuspend social security. The socalled file and suspend strategy is an excellent method of maximizing social security benefits. I intend to delay my filing for social security benefits until age 70 in order to provide the highest survivor benefit for my wife since im so much older than her. This tactic allows a worker to suspend receipt of their social security benefits as a means of increasing their payments at a future date. We pay social security benefits the month after they are due. Can file and suspend boost your social security benefits. As most blog readers know you can file for benefits any time after. The key advantage afforded by the file and suspend strategy was to increase the social security claiming options for many married couples by allowing them to take. The file and suspend tactic for social security benefits. Upon reaching full retirement age, typically 66, the beneficiary could file to claim social security, but then immediately suspend it, or ask to. One strategy is to file and suspend social security benefits. How to suspend your social security benefits suspending your social security benefits is an easy and straightforward process and there are several different ways to. A strategy known as file and suspend can boost social security benefits.
The lifeyield social security optimizer combines detailed analysis with a. January 1, 2016 fileandsuspend is a strategy that many married couples have employed to maximize their social security benefits. Couples who want to take advantage of a popular strategy that is being eliminated must act no later than april 29. File, suspend gets spouses most ssa benefits if a couple can wait to get social security benefits, the file and suspend technique ensures the maximum reward. Can i file and suspend for social security benefits online. Download the today app for the latest coverage on the coronavirus outbreak. And a single person voluntarily suspending their benefits can increase their social security benefits using one of two strategies. The end of file and suspend for social security congress plans to close social security loopholes this week, budget legislation bipartisan budget act of 2015 passed in congress to remove the ability for spouses to take advantage of the social security strategy commonly known as file and suspend. The first strategy is to benefit from delayed retirement credits. Social security expert brain doherty explains that the 2015 budget bill has essentially done away with two effective claiming strategies that let people maximize their social security benefits.
Optimizing the claiming decision is critical to making sure they maximize their income. Your request to suspend benefits may include all months for which you might be due a benefit. With the file and suspend strategy, a married person typically the one who makes the most money can file for their social security benefits at age 66 or older, and then immediately suspend those benefits, while their spouse can still file for spousal benefits. Social security ended file and suspend by ruling that if workers at full retirement age suspend their benefits to earn higher benefits in the future, other related benefits such as spousal benefits will also be suspended. Suspended payments, file and suspend after reaching fra, a worker is able to file for social security benefits but then suspend payments. Anyway, the answer to your first question is yes, you can file and suspend and no, your benefit at 70 is not reduced due to having taken social security. The ultimate guide to social security spousal benefits in. Is it possible to start your social security either early at age 65 or at full retirement age and then put it on hold, if, say, you get a new job and that gives you an opportunity to strength the benefits you will receive later. Social security ends file and suspend for claiming benefits. Suspending retirement benefits maximize my social security. In this strategy, one spouse files for a benefit but suspends payment in other words, notifying the social security administration that the filer is eligible but chooses to delay accepting his or her payments. Can you suspend social security and restart benefits later. Today financial editor jean chatzky has the details. What and when you collect will make a huge difference to your lifetime benefits.
How to suspend your social security benefits the motley fool. But i also realize that my wife and son may be eligible for benefits now if i file and suspend. The fileandsuspend claiming strategy has allowed married couples to maximize their social security benefits by allowing one spouse susan to. File and suspend was a social security claiming strategy that allowed married couples of full retirement age to receive spousal benefits and delay retirement credits at the same time. Last call to pursue social securitys file and suspend strategy. Can couples still file and suspend social security. The social security claiming strategy known as file and suspend can generate thousands in extra retirement benefits for married couples. File and suspend doesnt have to be all at once getting your financial ducks in a row says. Increase your social security benefit after youve filed.
Social security clarifies file and suspend deadline wsj. File, suspend gets spouses most ssa benefits thestreet. In 2016, changes were made to social security that essentially ended the option to file and suspenda strategy that allowed one spouse the higher earner to. Finally, by suspending, once you reach age 66 which is your full retirenment age, you would receive your maximum benefit and not subject to any reduction by filing and suspending. The main point of the law was to give people incentives to work longer by allowing them to work and receive full social security benefits after they have reached their full retirement age, or fra.
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