As part of the Budget Act of 2015, two popular Social Security claiming strategies, “File and Suspend” and “Claim Now, Claim More Later”, will not longer be allowed. For anyone who is 66 or older they have until April 29, 2016 to decide if they would like to utilize one of the two strategies.
File and Suspend allows someone at their full retirement age (currently 66) to file for his or her own benefits and then immediately suspend those benefits. That action triggers benefits for a spouse or other eligible family member while the worker’s own benefit continues to grow. It also creates an option to collect a lump sum payout of suspended benefits.
The second strategy is often called “Claim Now, Claim More Later”, and it allows a spouse or qualified divorce spouse to claim only spousal benefits at full retirement age – worth up to half of their spouses benefit amount – while their own retirement benefit continues to grow to the maximum amount at age 70.
Utilizing these strategies may allow you to collect tens of thousands of dollars of additional social security income than you would have collected without them.
There is a phase-in timetable based on birth dates that determines who will be able to use these strategies and for how much longer, but anyone who is 66 or older who files after April 29, 2016 will not be able to use them. If someone is already collecting social security benefits the changes will not impact them.
Utilizing these strategies may allow you to collect tens of thousands of dollars of additional social security income than you would have collected without them.
There is a phase-in timetable based on birth dates that determines who will be able to use these strategies and for how much longer, but anyone who is 66 or older who files after April 29, 2016 will not be able to use them. If someone is already collecting social security benefits the changes will not impact them.
Take Advantage Of These “Loopholes” Before They Are Gone