social-security-claiming-strategy-changes-2015

Bipartisan Budget Act of 2015 and Social Security Changes

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

There’s been lots of coverage in the news the past couple of weeks about changes to Social Security claiming strategies, so we’d like to share a few key highlights about what’s changed and how it may affect you.

The Bipartisan Budget Act of 2015, signed into law by President Obama on Monday, November 2, 2015, closes several “unintended loopholes” in Social Security’s rules. It effectively eliminates a married couple’s ability to use well-known social security claiming strategies—file and suspend and restricted application for spousal benefits—which have made it possible for both members of a couple who are 66 or older to delay claiming benefits based on their own earnings record, while the other receives a spousal benefit based on their spouse’s earnings.

What do the Social Security changes mean for you?

  • The file and suspend strategy has been eliminated. When you suspend your own benefit, you suspend all associated benefits (spouse, children).
  • Individuals who will be age 62 or older by December 31, 2015 will be grandfathered in and still be able to use the file and suspend and restricted application strategies. However, after May 2, 2016, the restricted application strategy will no longer be available.
  • Deemed filing now applies to age 70, rather than at full retirement age. This means that when you file for social security benefits, you file for the maximum personal and spousal benefits, not one or the other.
  • Those already implementing the file and suspend and restricted application strategies are also grandfathered in under the previous laws.
  • Persons turning 62 in 2015 will have options, but will need to start planning by the end of the year as there is a six-month window to file a restricted application.
  • Unfortunately, if you turn 62 after December 31, 2015, you will not be able to use the file and suspend or restricted application strategies.

Even though the file and suspend and restricted application strategy may no longer be an option for you, your advisor can help you optimize your social security benefits. If you have any questions about these social security changes or intended to follow the file and suspend or restricted application strategy, please contact your advisor for a complimentary social security analysis that takes into account the updated laws.

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Creating an Enduring, Intangible Legacy

Published by Beth Schanou, Creating a lasting legacy requires more than legal documents transferring material assets. Although a considerable amount of time is spent on the estate planning process, often the transfer of wisdom, insight, experience and other similar intangibles are not considered.

A Life Defined Starts Here

Many people set goals, yet on average they only attempt them less than once. Those who do reach their goals attribute their success to setting tangible, measurable objectives – and pursuing them with focus and determination, even when faced with challenges. Click here to open fullscreen

5 Lessons Parents Should Teach Their Children About Finances

Published by Andrew Rogers Every year, millions of young adults graduate from high school and embark on a new journey in life. Many are headed to college, some leave home to travel the world and others get ready to enter the workforce. But are they ready for what lies ahead? Many parents wo …

Don’t Treat Your Home Like A Cash Cow

Published by Ron Carson Almost everyone once thought of their house as their largest and safest investment—until the bubble burst. For generations, prudent “savers” would put sizable chunks of their incomes into their homes.
1 2 3 104 105 106 107 108
social-security-claiming-strategy-changes-2015

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation