[NOTE: Our software has been updated to reflect the new claiming rules, so reports are now available. Caveat: if you think you still qualify for the file-and-suspend option, you should first order our new custom report and then contact us for an additional custom report (free) that fully addresses the file and suspend issue.]
[Also note that if you are filing and suspending so that your spouse can use the restricted application (or free spousal) option at a later date, you are the only one affected by this April 29 deadline. The other spouse does not need to file for spousal benefits until they turn 66.]
If you want to use the file and suspend strategy for getting spousal benefits for your spouse while letting your own benefits continue to grow, you must have filed and suspended by April 29, 2016. If you suspend after that date (even though you may have filed earlier), spousal benefits paid on your record will also be suspended. (Keep in mind that if you file and suspend, that eliminates any opportunity for you to use a restricted application strategy to get “free” spousal benefits.)
There are two circumstances in which you (or your spouse) might want to file and suspend. In either circumstance, the person filing and suspending must be age 66 or older by no later April 29, 2016.
If you fall into this circumstance, and you want our help, you should do the following. Order a married persons report from us for $39.99. Then contact us for further free assistance and an additional free report.
This case involves using file and suspend in order to set up a restricted application strategy for the other spouse.
In this circumstance, the spouse (let’s say the wife) who stands to receive spousal benefits must have been born in 1953 or earlier. She can claim spousal benefits at age 66 while letting her own retirement benefits continue to grow, provided the husband has filed prior to her filing for spousal benefits. That is, she can use the restricted application strategy.
In order for her to get spousal benefits, he needs to have filed for his own benefits. If he wants ,to file and suspend, then he must meet the following two conditions: 1) he is at least 66 years old by April 29, 2016, and 2) he is not four or more years older than his wife. If he is more than four years older, there is no need to suspend. He will be 70 before his wife can file a restricted application.
This case does not involve a restricted application strategy. Rather, the file and suspend strategy is used to allow the wife to claim spousal benefits and her own retirement benefits (if any) at the same time. To simplify the discussions, assume the wife has no retirement benefits.
The husband wants to wait until 70 to claim benefits. However, if he is 66 or older by April 29, 2016, he can file and suspend and let his own benefits grow until age 70.
In order to claim spousal benefits, the wife must be at least 62. The husband could file and suspend by April 29 provided he is at least 66 but less than 70. This means that the age gap between the husband and the wife in this example could approach 8 years (versus 4 years in Circumstance 1). For example, if the husband is 66 in March 2016, he could file and then suspend payments until he reaches age 70 in March 2020. Suppose the wife is 8 years younger, so she turns 62 in March 2020. She could claim spousal benefits for one month while his benefits remained suspended. Of course, if the age gap was less than 8 years, she could receive spousal benefits for up to 4 years while his were under suspension. If the age gap is greater than 8 years, nothing is gained by filing and suspending.
If you fall into this circumstance, and you want our help, you should do the following. Order a married persons report from us for $39.99. Then contact us for further free assistance and an additional free custom report that deals with file and suspend.