File and Suspend Method of Claiming Social Security Benefits to Be Eliminated
Posted by Kim Chen on November 6th, 2015
The Bipartisan Budget Act of 2015 (H.R. 1314—the Act), signed by President Obama on 11/2/15, eliminates the file and suspend method, a popular strategy used by married couples to maximize their lifetime Social Security benefits. Under this approach, a higher earning spouse claims benefits at his full retirement age (currently age 66) but suspends the benefits until a later date (e.g., at age 70 or sooner, if desired), allowing the Social Security credits to continue to grow. The lower earning spouse claims benefits based on the higher earning spouse’s earning record, which are more than the benefits based on his or her own earnings record. In a provision labeled “closure of unintended loopholes,” the Act effectively eliminates this opportunity for claims filed after 4/30/16 (180 days after enactment). [ Editor’s Note: Those who’ve been using this method or other eligible individuals who file to claim benefits under this method within the next 180 days should not be affected.] [Bipartisan Budget Act of 2015, Section 831(b).]
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