File and Suspend

[Rich_by_the_Bay]

Looks like his complex but attractive Social Security loophole is being closed down in a few months. We have determined that we are eligible and are going for it. The above link explains it better than I can.

This could end up as a final benefit tens of thousands or even hundreds of thousands more over my and her lifetimes. I'll believe it when I see the first check, but this could be a game changer.

* Anyone here actually done it successfully?
* Caveats?
* If you think you might be a candidate, do it before April 29, 2016
* I'm not a financial advisor of any type, so do what you've got to do

 

[pb4uski]

I think the benefit depends on what you are comparing it to (and how long you live), but hundreds of thousands seems extremely unlikely.

Also see Loss of file-and-suspend strategy may be overblown

 

[Rich_by_the_Bay]

I think the benefit depends on what you are comparing it to (and how long you live), but hundreds of thousands seems extremely unlikely.

Also see Loss of file-and-suspend strategy may be overblown

That projection was for living to 100 years old. I will give you a call when I get there.

 

[braumeister]

DW and I were able to do this before they changed the rules.
In our case, the net result is that we are a bit over $50K ahead (total amount received and still to be received as a result).

DW is about two years younger, so I filed and suspended when she reached FRA, and she began collecting spousal.

We will both begin collecting on our own when each of us reaches 70. Our individual retirement benefit is roughly the same.

Whether you call it a loophole, an oversight, or an unintended consequence, it's $50K that is very much appreciated.

 

[athena53]

I believe I can file for restricted benefits (another tactic they're shutting down) because I was 62 as of 12/31/15. DH is 77 and has been collecting for years. I believe I can file for a restricted benefit at age 66, collect spousal on his record, then collect my own at 70. I plan to make darn sure the laws still allow it then; my own benefit is way higher than Spousal would be.

 

[Rich_by_the_Bay]

DW and I were able to do this before they changed the rules.
In our case, the net result is that we are a bit over $50K ahead (total amount received and still to be received as a result).

DW is about two years younger, so I filed and suspended when she reached FRA, and she began collecting spousal.

We will both begin collecting on our own when each of us reaches 70. Our individual retirement benefit is roughly the same.

Whether you call it a loophole, an oversight, or an unintended consequence, it's $50K that is very much appreciated.

Not sure whether they considered opportunity cost, compounding etc. But I leave it to others who know more. And as you said, it's found money for just a few hours of work. Congratulations.

 

[pb4uski]

Cost to us is about $25k.... the difference between 50% of my benefit and DW's benefit based on her work record for four years if I defer to 70.

 

[mathjak107]

if you are 62 in 2015 or older you can still do a restricted application , but after april file and suspend is dead .

we will do a restricted application when my wife hits 70 and i am 67 and 10 months while i try to delay to 70 . i am 63-1/2 now and shes is 65 .

she will stop hers at fra since she is already getting an early benefit . that early benefit will then start growing again from fra to 70 as well .

with markets doing poorly and from these valuations odds are we will see below average returns over the next 8 -10 years ss seems the better deal .

if it looks like cuts will be made we can always file eralier if things get grandfathered

 

[Spanky]

Looks like his complex but attractive Social Security loophole is being closed down in a few months.

OK. What else are they planning to change or cut?

 

[pb4uski]

Nothing imminent, but that means the system remains in peril.

 

[Ed_The_Gypsy]

* Anyone here actually done it successfully?
* Caveats?
* If you think you might be a candidate, do it before April 29, 2016
* I'm not a financial advisor of any type, so do what you've got to do

* yes.
* Do it NOW! Recommend you (both together) go to SS office together with all documentation.


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