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Social Sec. File and suspend is gonna end.
Old 10-30-2015, 06:11 PM   #1
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Social Sec. File and suspend is gonna end.

http://www.freerepublic.com/focus/f-news/3354004/posts

Spousal SS claiming strategy of File and Suspend, for new people only, ending.

Supposedly will save $billions.

I'm 61. Makes sense for me to wait until 70 to claim (longevity insurance), but I'm paranoid gov will continue to chip away at bennies, may take the cash next year.
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Old 10-30-2015, 06:24 PM   #2
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Already an extensive thread on this. Lots of good information until it got shut down cause some folks couldn't resist turning it into a rant on who deserved what benefits and who should pay.
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Old 10-30-2015, 09:44 PM   #3
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Here's a nice summary from a blogger

New Social Security Rules: What You Need to Know

Quote:
There are two primary categories of changes:
  • One set of changes to the deemed filing rules (which affect the “restricted application” strategy [an application to collect just spousal benefits while they allow their retirement benefit to continue growing] ), and
  • Another set of changes to the rules regarding voluntary suspension of benefits (which affect the “file and suspend” strategy).
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Old 10-31-2015, 07:24 AM   #4
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Originally Posted by stepford View Post
............ Lots of good information until it got shut down cause some folks couldn't resist turning it into a rant on who deserved what benefits and who should pay.
Look on the bright side, this is a fresh opportunity to argue those points all over again.
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Old 10-31-2015, 07:59 AM   #5
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Look on the bright side, this is a fresh opportunity to argue those points all over again.
That's just what I was thinking.
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Old 10-31-2015, 09:56 AM   #6
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Glad they fixed this.


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Clearest - simple - explanation of the new regulations
Old 11-01-2015, 10:24 AM   #7
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Clearest - simple - explanation of the new regulations

Budget Deal Nixes Popular Social Security Claiming Strategies-Kiplinger

I keep reading all the latest analysis of the pending budget plan and the effects it will have on SS claiming strategies. Without getting into what is good or bad about what is going to happen, I found this article to be the easiest to understand.
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Old 11-01-2015, 01:18 PM   #8
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Interesting. This will add a different strategy for us. As background, DW's benefit is ~ 30% of mine and we are close to the same age (I'm 8 months younger).

Before these changes, our plan was for her to file based on her work record at her FRA, I would file and suspend 8 months later at my FRA and her benefit would get bumped up to half of mine and I would start collecting an enhanced benefit at age 70.

Now, I think she will file based on her work record at her FRA, I would file a restricted application for spousal benefits only 8 months later at my FRA ad I would get half of her benefit and then I would start collecting an enhanced benefit based on my work record at age 70.

Quote:
..... Since the file-and-suspend strategy is disappearing, this will work only if one spouse is actually receiving benefits. In that case, the other spouse could file a restricted application and collect spousal benefits at the same time he or she continues to rack up delayed retirement credits.

Say Mary's full retirement age benefit amount is $500 a month, and her husband, John, is eligible for a full retirement age benefit of $2,000 a month. Both are 66. Under the current rules, Mary could get a spousal benefit of $1,000 a month if John files and suspends his benefit. The couple will no longer be able to do that, but Mary could take her $500 benefit and John could file a restricted application for a spousal benefit of $250 a month while continuing to earn delayed retirement credits. ....
From 70 on what our benefits will be the same as before this change... the change will cost us ~$900/month from FRA to 70..... about $40k. No problem.
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Old 11-01-2015, 01:29 PM   #9
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Originally Posted by pb4uski View Post
Interesting. This will add a different strategy for us. As background, DW's benefit is ~ 30% of mine and we are close to the same age (I'm 8 months younger).

Before these changes, our plan was for her to file based on her work record at her FRA, I would file and suspend 8 months later at my FRA and her benefit would get bumped up to half of mine and I would start collecting an enhanced benefit at age 70.

Now, I think she will file based on her work record at her FRA, I would file a restricted application for spousal benefits only 8 months later at my FRA ad I would get half of her benefit and then I would start collecting an enhanced benefit based on my work record at age 70.



From 70 on what our benefits will be the same as before this change... the change will cost us ~$900/month from FRA to 70..... about $40k. No problem.
This is an interesting take on the benefits change, now I understood some of these changes will also impact survivor benefit in the file and claim a spousal benefit Of course the deceased person can't be receiving a benefit. I also thought when you filed they will check both your spousal and own amount and simply pay you the larger one and you wouldn't have the option of upgrading later. How soon do you all think the actual regulations will be published?
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Old 11-01-2015, 01:31 PM   #10
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No idea... we're actually 6 years from FRA so we have lots of time to sort things out. My plan would be to study claiming strategies with socialsecuritysolutions.com or similar advisers as we near our FRA.
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Old 11-01-2015, 01:34 PM   #11
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No idea... we're actually 6 years from FRA so we have lots of time to sort things out. My plan would be to study claiming strategies with socialsecuritysolutions.com or similar advisers as we near our FRA.
So you are not in the 62 grandfathered area, we both are which should help us a little bit going forward
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Old 11-01-2015, 01:38 PM   #12
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Originally Posted by pb4uski View Post
Now, I think she will file based on her work record at her FRA, I would file a restricted application for spousal benefits only 8 months later at my FRA ad I would get half of her benefit and then I would start collecting an enhanced benefit based on my work record at age 70.
Pb4uski - I don't think you will be able to do this (but I could be wrong). It is my understanding that only folks who will be 62 or older by the end of this year will be able to claim 50% spousal and let their own grow until 70. That is what the "deemed" part is all about in the new regulations. I think you are only 60 this year? Again, I could be wrong.
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Old 11-01-2015, 01:42 PM   #13
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Pb4uski - I don't think you will be able to do this (but I could be wrong). It is my understanding that only folks who will be 62 or older by the end of this year will be able to claim 50% spousal and let their own grow until 70. That is what the "deemed" part is all about in the new regulations. I think you are only 60 this year? Again, I could be wrong.
That was what I understood as well, when you apply (those under 62 this year)going forward you will just get the biggest benefit you are entitled to and that's all. I'm not going to believe any mainstream articles until the regulations are actually published.
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Old 11-01-2015, 01:45 PM   #14
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Quote:
Originally Posted by pb4uski View Post
... Now, I think she will file based on her work record at her FRA, I would file a restricted application for spousal benefits only 8 months later at my FRA ad I would get half of her benefit and then I would start collecting an enhanced benefit based on my work record at age 70...
I don't think you can do that. When you file at FRA, you will get your own benefit because it is higher than the spousal benefit off your wife.

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Originally Posted by Htown Harry View Post
Here's a nice summary from a blogger

New Social Security Rules: What You Need to Know
Excerpt from above link:
For anybody who will not yet be age 62 as of 1/1/2016, however, there are two big changes.

First, the deemed filing rule will be applicable regardless of age. That is, even if you have reached full retirement age, if you file for retirement benefits or spousal benefits and you are also eligible for the other type of benefit (spousal or retirement) at that time, you will be deemed to have filed for both types of benefits. This singlehandedly eliminates the restricted application strategy for those who are affected.
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Old 11-01-2015, 01:53 PM   #15
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After I read Mike Piper's post I saw that he shared your views that my amended plan to file for a restricted applicaiton would not work, but I'm still hung up on the example in the Kiplinger article

Quote:
Say Mary's full retirement age benefit amount is $500 a month, and her husband, John, is eligible for a full retirement age benefit of $2,000 a month. Both are 66. Under the current rules, Mary could get a spousal benefit of $1,000 a month if John files and suspends his benefit. The couple will no longer be able to do that, but Mary could take her $500 benefit and John could file a restricted application for a spousal benefit of $250 a month while continuing to earn delayed retirement credits
Unless perhaps they meant that both are 66 NOW, whereas DW and I will not be 66 for some time.
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Old 11-01-2015, 01:57 PM   #16
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Unless perhaps they meant that both are 66 NOW, whereas DW and I will not be 66 for some time.
Yes. Some SS clauses are grandfathered in.

Life is not fair, is it? But then, the younger generations will be saying the same thing about us when they pay more SS tax and perhaps have to work till 70.
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Old 11-01-2015, 02:11 PM   #17
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Y...Life is not fair, is it? ...
True, but the change doesn't bother me a whole lot especially if it helps preserve the system for everyone.
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Old 11-01-2015, 03:15 PM   #18
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After I read Mike Piper's post I saw that he shared your views that my amended plan to file for a restricted applicaiton would not work, but I'm still hung up on the example in the Kiplinger article



Unless perhaps they meant that both are 66 NOW, whereas DW and I will not be 66 for some time.
I think making new plans isn't very productive until the regulations are actually published. "Experts" are posting articles on-line without anything factual at this time.
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Old 11-01-2015, 04:42 PM   #19
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I suspect we'll be seeing several of these small tweaks every year or so going forward for the foreseeable future. Its easier to change the rules slowly over time like this.
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Old 11-01-2015, 04:49 PM   #20
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Change will effect us, because husband will have to claim earlier so I can get spousal benefit. I do not get my own ss.

Approximately 2 year age difference trying to figure should I forgo spousal and claim when he claims at 70 making me approx 68 .Or just have him collect 68 me 66 .
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