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Thanks to the OP for starting this thread ….you've given me an idea…..
I'll go over it with my FP when the time comes…(sad to say still years from now)
-- take Soc Sec. for 2 years -- from 65 to my FRA of 67, then suspend until 70.
Uhmmmm, have to at least do the math on that…IF they haven't changed the rules on the late baby bombers by then. I'm only 55 who know what the rules will be 10 years from now.
Ummm, you can't do that under the laws after May 2016. Right now, for those that are not already 62, once you file, you are filed. The only way to gain credits is to work before your FRA, And then payback what you got from SS. There is no more file and suspend.
You can still file and suspend at FRA. But there were changes to it. The changes are:
(1) if you suspend your benefit, anyone who is getting benefits based on your benefit (i.e. spousal benefits, family benefits) will no longer receive their benefit.
(2) Under old Social Security rules you could file and suspend and if you changed your mind you had options. You could have un-suspended your benefit and received the monthly amount due at your current age going forward. Or you could have asked for a lump sum payment of your past suspended FRA monthly amount and you would have lost any delayed filing credit. But the current law changes this. Current understanding is that the current law is saying you only have the option to un-suspend your benefit going forward but not request a lump sum payment of your past benefits sans delayed retirement credit.
There are attorneys, legislators, and Social Security policy staff scrutinizing the wording of the new law and there is the question of whether or not it does intend to prevent someone from un-suspending and receiving a lump sum payment of the back suspended benefit sans delayed retirement credit.
I also didn't think the law BANS ALL file and suspend.
But it definitely changes the rules regarding the practice.
Definitely married couples who want to do that F&S spousal benefits thing should research it.
(I’m SINK, so I never have tried to figure that rigmarole out.)
You can still file and suspend at FRA. But there were changes to it. The changes are:
(1) if you suspend your benefit, anyone who is getting benefits based on your benefit (i.e. spousal benefits, family benefits) will no longer receive their benefit.
(2) Under old Social Security rules you could file and suspend and if you changed your mind you had options. You could have un-suspended your benefit and received the monthly amount due at your current age going forward. Or you could have asked for a lump sum payment of your past suspended FRA monthly amount and you would have lost any delayed filing credit. But the current law changes this. Current understanding is that the current law is saying you only have the option to un-suspend your benefit going forward but not request a lump sum payment of your past benefits sans delayed retirement credit.
There are attorneys, legislators, and Social Security policy staff scrutinizing the wording of the new law and there is the question of whether or not it does intend to prevent someone from un-suspending and receiving a lump sum payment of the back suspended benefit sans delayed retirement credit.
it looks like getting a lump sum more then 6 months back is pretty much dead according to kitces .
the Bipartisan Budget Act of 2015 created a new Social Security Act section 202(z), which defines the rules for how voluntary suspension will work in the future (including “unsuspension” or resumption of benefits). And the new rules stipulate under 202(z)(1)(A)(ii) that suspended benefits can only be resumed in the next subsequent month after the request is made, or at age 70. In other words, the new rules don’t have the option to reinstate going back to a prior month, which effectively means the optional-lump-sum-reinstatement strategy is dead.
I also didn't think the law BANS ALL file and suspend.
But it definitely changes the rules regarding the practice.
Definitely married couples who want to do that F&S spousal benefits thing should research it.
(I’m SINK, so I never have tried to figure that rigmarole out.)
the problem is the equation is more complex then that calculator allows for .
taxes , rmds , the spending of invested assets , getting ss taxed , effect of annuity's on taxes when combined with ss etc all can play a role in the decision .
the sites that specialize in this stuff and charge accordingly do much more comprehensive work ups that can be very crucial when making one of the biggest financial decisions in our lives and all the secondary ramifications from it .
Under current law (2015 social security changes) you can file at age 62 for Social Security benefits and suspend those benefits at FRA. You could then begin taking your benefits again at any age. If you wait past FRA you will receive delayed retirement credits. However, the credit $ will be less than had you not taken benefits at age 62 and then suspended because the credit will be based upon your reduced (age 62) benefit rather than your FRA benefit. So, yes, you are hurt to a degree by receiving benefits and then suspending them and taking them later.
Because of your wife's age in 2015 she would not be grandfathered into the old Social Security rules from the Clinton administration. When your wife files for Social Security benefits she will no longer be able to restrict her application to spousal benefits only. Assuming that she worked, her benefit will be based on her Social Security earnings and if they are less than her spousal benefit, a spousal benefit would automatically be added to her benefit.
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