Last Call for the Social Security “File and Suspend” Strategy
The Social Security claiming strategy, “File and Suspend,” will be phased out May 1, 2016, as a result of The Bipartisan Budget Act of 2015. This strategy came into play for some married couples, when both individuals were eligible for benefits off their own work record. One spouse would file and suspend benefits at their full retirement age, triggering spousal benefits for their spouse, but also earning the delayed retirement credit until age 70.
Single individuals also used this strategy, filing and suspending their benefit at full retirement age, thus preserving the option to receive a retroactive lump sum payment back to the date of their original application. On May 1st these retroactive benefits will also be eliminated.
If you are currently receiving benefits or have already filed and suspended your benefits, you are not affected by this change.
Last Call! If you are full retirement age (66 or older) or will be by April 29, and not currently collecting Social Security benefits, you might want to give me a call to discuss your unique situation, and preserve options you may lose otherwise.
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