SS and File and Suspend

[TrvlBug]

Argh...I'm now talking to an SS agent after waiting 40 min. because they don't have an on-line appointment scheduler. I (62) just filed for SS yesterday. DH (69) wants to file and suspend to collect on my record until he turns 70 early next year.

The SS agent is telling me we both have to be at FRA. I can't believe this as this scenario was recommended to us by Fido's SS experts. I don't want to leave $9K+ on the table.

HELP...is this true or do I need to talk to another agent?

I tried to do this online as well as apply for Part B Medicare for DH who is retiring in July, but their site isn't intuitive and we couldn't figure out how to do all this so am trying to make an appt.

 

[pb4uski]

I think the agent is correct... I think that you would need to be FRA for your DH to collect spousal benefits.

 

[GrayHare]

As an alternate to FRA I think collecting SS disability also qualifies.

 

[ProspectiveBum]

I think the agent is correct... I think that you would need to be FRA for your DH to collect spousal benefits.

I know it's not relevant to OP's situation, but is the reverse scenario also true? DW is 4 years older than me, can she start collecting at 67, and I start at 63 on her record, before switching to my own benefit at 70? Or would I need to wait until FRA to begin collecting on her record?

 

[pb4uski]

I don't think that would work (assuming that the amount you would receive at 63 is more than half of what she would receive at 63) in that I have a faint recollection that under the new rules if you apply for spousal benefits that you are deemed to have applied for your own benefits as well so if your benefit exceeds 50% of her FRA benefit then you would start receiving benefit under your record and would not get delayed retirement credits.

I suggest you try this: SSAnalyze - Bedrock Capital Management

 

[Midpack]

Don't know when you talked to Fido reps, and I suspect you know the rules changed a little while ago, but just in case These Social Security enhancers are still available - CBS News

 

[TrvlBug]

Oops...wrong terminology. It is a 'restricted application', not 'file and suspend' although I think the result is the same and I don't understand the distinction between the two! DH is going to collect 1/2 of my bens until he turns 70 and starts collecting under his record. The agent says the changeover will be automatic once he turns 70, but I plan on double checking that factoid. A nice chunk of change we hadn't counted on.

Before they changed the file and suspend rules, that was my plan, wait until my FRA then collect half on DH's record and let mine grow to 70. But since that loophole was closed, this scenario makes the most sense, $ wise.

I was amazed that the agent let me file on DH's behalf! I was simply calling to schedule an appointment as DH is on a biz trip until the end of the week.

 

[Never2L8]

I was trying to respond to your question on my phone and decided to use my laptop instead when I saw your second post. I was thinking it was just a terminology issue because you wanted a restricted application. This is the exact scenario I have recommended to my sister-in-law. Glad you got that straightened out!

 

[ProspectiveBum]

Oops...wrong terminology. It is a 'restricted application', not 'file and suspend' although I think the result is the same and I don't understand the distinction between the two!

This website has a decent overview of the difference: File & Suspend and Restricted Application are NOT Equal

The salient fact for me was this one:

Note: with the passage of the Bipartisan Budget Bill of 2015 into law, File & Suspend and Restricted Application have been effectively eliminated for anyone born in 1954 or later. If born before 1954 there are some options still available, but these are limited as well. Please see the article The Death of File & Suspend and Restricted Application for more details.

Since I was born well after '54, I can forget about this altogether.

 

[TrvlBug]

Thanks PBum, great write up on the differences between the two. Now I know why he'll be getting more than the 50% of my record on my date of filing. I thought Fido made a mistake but he gets 50% of my FRA bens rather than 50% of my age 62 filing date.

 

[mathjak107]

here is a nice summary chart

 

[Midpack]

Good chart, I thought they killed it altogether - probably because I was born shortly after 1/1/54...so there's no benefit to DW and I. But I'm OK with that, there are going to have to be some tweaks to SS, the sooner the better IMO.

 

[cyber888]

Yeah, I think your hubby, being 69, will get more than 50% of the SS benefits you are getting at 62.

My understanding is that if your SS benefit at full retirement age (66) is say $1,500 and you can get discounted SS benefits at 62 for $1,000, your hubby (being already 69 and at FRA) will get 50% of $1,500 (or $750) and not 50% of $1,000 ($500).

So, you can get $1,000 at 62 and hubby at $750 (not $500). I guess this is right. Pleae give us feedback later when you finalize with SS if this is indeed the case.

Thanks PBum, great write up on the differences between the two. Now I know why he'll be getting more than the 50% of my record on my date of filing. I thought Fido made a mistake but he gets 50% of my FRA bens rather than 50% of my age 62 filing date.

 

[mathjak107]

yes , spousal is always based on the other spouses full . as long as the spouse taking spousal is fra they get 1/2 .

 

[mathjak107]

Good chart, I thought they killed it altogether - probably because I was born shortly after 1/1/54...so there's no benefit to DW and I. But I'm OK with that, there are going to have to be some tweaks to SS, the sooner the better IMO.

i am 64 and my wife 65 so we still have restricted application as an option

 

[UpAnchor]

Good chart, I thought they killed it altogether - probably because I was born shortly after 1/1/54...so there's no benefit to DW and I. But I'm OK with that, there are going to have to be some tweaks to SS, the sooner the better IMO.

i am 64 and my wife 65 so we still have restricted application as an option

Me too. And for once timing actually worked in my favor. Likely because I had no involvement and thus couldn't foul it up. And now you understand why I'm primarily an indexer.