Once the law is fully phased in, a high-earning spouse or divorced individual will no longer be able to receive a spousal benefit if his or her own retirement benefit is higher.
In addition, a person may no longer file and suspend for the purpose of entitling a spouse to spousal benefits or to claim suspended benefits in a lump sum at a later date.
However, a restricted application is still available for certain people! The Budget Act allows anyone who had attained age 62 by the end of 2015 to file a restricted application for spousal benefits when they turn full retirement age (FRA).
This strategy may be appropriate for you if:
- You were born on or before January 1, 1954, and
- Your PIA is more than 50% of your spouse’s PIA, and
- You are planning to claim your Social Security benefit at age 70 to earn maximum delayed credits, and
- You would like to receive a spousal benefit of 50% of your spouse’s PIA from age 66 to 70 and switch to your own maximum benefit at 70.
Reed Financial Planning Services, LLC is here to help you and your family with your planning needs. Reach out to us today if we can be of any assistance to you.
Partially written by Elaine Floyd, CFP®
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License #: 4748934 Reprint Licensee: Scott Reed
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