The End of File & Suspend:

The Strategy: Using the File and Suspend strategy, one member of a couple claims benefits and suspends them. This gives his or her spouse the ability to start claiming a spousal benefit at the appropriate time while the benefit of the spouse that filed and suspended continues to grow at 8% per year while the benefit is suspended up until age 70. This increases not only the benefit payable when it is resumed, but also increases the eventual survivor benefit payable.

The Change: Under the new law, when an individual suspends his or her own benefits, all benefits payable, including those payable to a spouse or other dependents will also be suspended. The new law also eliminates the ability to request a lump-sum benefit back to the date of when benefits were suspended.

Why This is Important & What’s Happening: Basically, the ability to have a spouse claim a spousal benefit while the primary filer also receives Delayed Retirement Credits is going away if you don’t take advantage of this by the deadline. Failing to take advantage of this strategy can cost many couples $50k to $60k in lifetime benefits or more than $120k when combined with a Restricted Application strategy.

Important Deadlines: Those who are receiving benefits already under this strategy will continue to receive them. For those that are not, they must be at least 66 and must file by April 29th, 2016. You should consult with an Advisor before deciding whether this is right for you and your spouse because it's not the best strategy for everyone. Those either already implementing this strategy or filing and suspending before April 29th, 2016 will continue to fall under the old rules until they reach 70 or resume benefits. Those who request to suspend after the April 29th, 2016 deadline will be subject to the new rules.

What You Should Do: Talk with a Social Security Advisor and obtain expert advice on who should File and Suspend and when. Implementing the File and Suspend strategy can be difficult, however, your Social Security Advisor can even complete the filing for you for a modest one-time fee of $99.95. Especially if you or your spouse are going to be 66 or older by April 29th, 2016 you need to pay very close attention and carefully consider your options. The File and Suspend strategy is very valuable and it is important to obtain expert advice prior to proceeding.

• Singles: All singles 66 and over by April 29th, 2016 should highly consider and evaluate filing and suspending in order to preserve the option to receive a lump-sum benefit at a later date. This will no longer be possible after the April 29th, 2016 deadline.

• Married Couples: All married couples with at least one spouse age 66 to 70 need to consider whether it would be beneficial to file and suspend by the April 29th, 2016 deadline in order to preserve their options and Social Security strategies available to them to maximize their benefits. Married couples have the most to lose by failing to consider these strategies prior to the deadline.

• Divorced: All divorced individuals 66 and over by April 29th, 2016 should highly consider and evaluate filing and suspending in order to preserve the option to receive a lump-sum benefit at a later date. This will no longer be possible after the April 29th, 2016 deadline.

• Survivors: Interestingly, survivors are unaffected by this new legislation and will continue to have the same options available to them going forward. Survivors should carefully consider their Social Security options because they can be eligible for benefits on one record while continuing to accrue Delayed Retirement Credits and claim on the other record at a later date.

   The End of the Resricted Application Strategy:

The Strategy: Filing a Restricted Application at Full Retirement Age or later allows the filer to file only for spousal benefits (worth up to 50% of their spouse’s Full Retirement Age benefit) while letting their own benefits continue to grow and accumulate Delayed Retirement Credits at the rate of 8% per year until they claim their own benefits at a later date.

The Change: With the exception of those filing for survivor benefits, anyone born in 1954 or later will no longer be able to file a Restricted Application for spousal benefits only. Those attempting to do so will be subject to the “deemed filing” rule which requires that Social Security consider your eligibility for all benefits for which you are eligible.

Why This is Important & What’s Happening: Filing a Restricted Application is being eliminated for those born in 1954 or later (with the exception of those filing for a survivor benefit).

Important Deadlines: You must be at least 62 by December 31st, 2015.

What You Should Do: Talk with a Social Security Advisor and obtain expert advice on who should file a Restricted Application and when. Implementing the Restricted Application strategy can be difficult, however, your Social Security Advisor can even complete the filing for you for a modest one-time fee of $99.95. The Restricted Application strategy is very valuable and it is important to obtain expert advice prior to proceeding.

• Singles: Because a Restricted Application is only valuable to those that are or have been married, singles will be unaffected by this change.

• Married Couples: All married couples with at least one spouse that is at least age 62 but under 70 and that has not already claimed benefits on their own record need to consider whether it would be beneficial to file a Restricted Application to help them maximize their benefits. Married couples have the most to lose by failing to consider these strategies. Failing to take advantage of this strategy can often cost couples $50k to $60k in lifetime benefits or more than $120k in lifetime benefits when combined with a File and Suspend strategy.

• Divorced: All divorced individuals born prior to 1954 that have not already claimed benefits on their own record should highly consider and evaluate filing a Restricted Application in order to preserve the option to receive spousal benefits while also obtaining Delayed Retirement Credits. This is often worth $50k to $60k in benefits.

• Survivors: Survivors are unaffected by this new legislation and will continue to have the same options available to them going forward. Survivors should carefully consider their Social Security options because they can be eligible for benefits on one record while continuing to accrue Delayed Retirement Credits and claim on the other record at a later date.

   Why This Is Happening:

A new law as part of the Bi-Partisan Budget Bill of 2015 that passed November 2nd, 2015 means that two popular Social Security strategies will be eliminated and this may change the way that you need to be thinking about how and when to claim your Social Security. Even those that have already claimed can be impacted.

Brief Background

Social Security claiming strategies have gained in popularity in recent years as more Americans have recognized that they can receive more in Social Security benefits by making a smart decision when deciding how and when to collect their Social Security vs. simply claiming benefits at 62, 66, 70 or somewhere in-between.

A law called the Senior Citizen’s Freedom to Work Act was passed in 2000 that opened up the opportunity for many Americans to both start collecting some Social Security benefits while also continuing to accrue Delayed Retirement Credits which increased their Social Security benefit in the long-term.

The new law just passed on November 2nd, 2015 limits some of these Social Security strategies in the coming months and time is now of the essence to take advantage of these strategies to increase your benefits before these strategies disappear.

   What Should I Do Now?:

Whether any of the strategies above are right for you requires careful analysis as each situation is different.

Working with a knowledgeable Social Security Advisor such as the service offered by SocialSecurityAdvisors.com is highly recommended given the complexity of the rules and that expert advice is critical when determining how best to maximize your Social Security. Fees for the service are modest ranging from $24.95 to $124.95. In addition to the advice, help is even available to complete the filing for benefits for you.