The budget bill signed into law on Monday, Nov. 2, made significant changes that could impact your Social Security options and your optimal collection strategy. Here are a few key points you need to know:
1. The bill is eliminating the popular “file and suspend” strategy. However, those already utilizing this strategy will be grandfathered in and there’s a six-month window from the time the bill was passed to take advantage of it.
2. The bill is eliminating use of “restricted application.” Restricted application allowed a spouse who had attained full retirement age, who was also eligible for his or her own retirement benefit, to collect only a spousal benefit. At a later date, usually age 70, the spouse would switch to his or her own retirement benefit, which would have grown to its maximum with delayed retirement credits. Restricted application will still be available to those who turn 62 prior to 2016.
Without question, these rules have added even more complexity to Social Security planning, and have made understanding how to get the most out of your benefits more difficult than ever.
Because these changes are so important, we have decided to hold an emergency town hall meeting. We will spend about 20 minutes providing an overview of the changes and the rest of the time answering your questions.
Here are the details:
When: Tuesday, November 17th at 7:00pm
Where: The Medallion conference suite, next door to our offices
Click here to read more about the changes and how they may affect your benefits: http://federalnavigators.vestorly.com/preview/posts/one-of-the-most-lucrative-social-security-strategies-for-married-couples-is-being-eliminated