By Karl Schwartz, CPA, CFP® | Principal, Senior Financial Advisor and
the OneBite Editorial Staff
Click here for a full recap of the key benefits and changes put into place following the passage of the Bipartisan Budget Act of 2015.
As many of you know, the Bipartisan Budget Act of 2015, signed into law by President Obama last November, impacted several popular Social Security filing strategies, including two that are most commonly used by married couples today: file-and-suspend and restricted application.
Since the signing of the Bipartisan Budget Act, the Social Security Administration (SSA) has provided clarification on several details that were not specifically defined in the initial legislation. Here is a summary of the final details you should know:
Recap: This strategy allows one spouse to file for Social Security benefits at their full retirement age (FRA) and then immediately suspend the collection of the benefits as far out as age 70. One of the key elements of this strategy is that it addresses one of the qualifying factors to allow a spouse to collect a spousal benefit based on their earnings record.
Deadline Approaching: To take advantage of this strategy, you must be 66 and file and suspend your benefits on or before April 29, 2016. The SSA recently announced that it will not process any suspension requests submitted on or after April 30, 2016. However, if you file and suspend before April 30, but your request isn’t processed until April 30 or later, the SSA will still honor your claim — thus, you’ll still be able to take advantage of the strategy (so long as you’re of eligible filing age).