Social Security Planning

Social Security Planning

2016 brings changes to Social Security filing options
  • New budget legislation passed on October 30, 2015 included a provision to end two filings strategies: File-and-Suspend; Filing a Restricted Claim of Spouse Benefits

  • New measures will become law after the bill is signed by President Obama

  • Changes take effect within six months of the bill being signed-on or about May 1, 2016

  • Will reduce lifetime retiree benefits

Who is affected?
  • Individuals filing for Social Security benefits after May 1, 2016 (Benefits may still be suspended to earn DRCs between 66 and 70; Spouse benefits may not be collected while the primary benefit is suspended)

  • Individuals younger than 62 on December 31, 2015 will not be permitted to collect spouse benefits only.

  • Divorced spouses younger than 62 on December 31, 2015 will not be able to collect spouse benefits while taking advantage of DRCs on their own benefit.

Some individuals can still take advantage
  • Limited time opportunity

  • Indivduals who are at least 66 years old-or who will turn 66 in the next six months-can take advantage of this strategy

  • Benefits strategies will be grandfathered for these individuals