NEW YORK (12/1/15)--The impending disappearance of two popular Social Security filing strategies in May 2016--“file and suspend” and “restricted application”--could force big changes to the retirement plans of potentially millions of retirement-age married couples and divorcees (The Wall Street Journal Nov. 19).
If you’re currently receiving Social Security benefits, you likely will not be affected by the prospective changes to rules. However, when the rules change in May, millions of couples could lose the ability to benefit from some combination of the two strategies.
Before the rules changed, married couples could employ one or both of two strategies to boost their retirement income significantly:
Because of grandfathering provisions in the rules, with planning, some couples and ex-spouses can take advantage of the about-to-be discontinued strategies. Here are four possibilities:
Not all of the grandfathering rules require immediate action. But don’t ignore them--in some cases, you need to do something to take advantage of the strategies before they disappear.
Because everyone’s situation is unique, speak with a financial professional to learn the strategy that will work best for you. For more information, read “Couples, Sync Your Retirement Plans” in the Home & Family Finance Resource Center.