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Important if you are or will reach age 66 by 4/30/16: You have only a few days left to take advantage of the popular SS claiming strategy referred to as "File and Suspend" (FAS). Under a bill signed by Pres. Obama last November, FAS will be terminated as of 4/30/16. There has been some confusion about the timing; many people assumed they could FAS at any time (including after 4/29) as long as they had reached age 66 by the deadline. The SSA has clarified that this is not the case. You must FAS no later than 4/29/16 to be eligible.
SSA also clarified that divorced spouses (who were married at least 10 years and are currently unmarried) can claim on the ex-spouse's benefits even if the ex has suspended benefits. This will not affect the ex's benefits.
Also, many people are not aware that they are eligible to request a lump-sum back payment of all benefits suspended if they should later determine that FAS would not be beneficial. This is similar to a Roth recharacterization which allows you to be made whole by the due date of the next filing year if you want to undo your decision.
I realize many readers on this website are too young to care about this topic, but you may have parents and other relatives who may be unaware of the FAS rules who could benefit. Please pass this along.
SSA also clarified that divorced spouses (who were married at least 10 years and are currently unmarried) can claim on the ex-spouse's benefits even if the ex has suspended benefits. This will not affect the ex's benefits.
Also, many people are not aware that they are eligible to request a lump-sum back payment of all benefits suspended if they should later determine that FAS would not be beneficial. This is similar to a Roth recharacterization which allows you to be made whole by the due date of the next filing year if you want to undo your decision.
I realize many readers on this website are too young to care about this topic, but you may have parents and other relatives who may be unaware of the FAS rules who could benefit. Please pass this along.