The new rules for Social Security were passed in Section 831 of the Bipartisan Budget Act of 2015. At that point Congress effectively eradicated the File-and-Suspend and Restricted Application claiming strategies for optimizing Social Security benefits. Individuals under age 62 in 2015 (born January 2, 1954 or later) are not eligible for the File-and-Suspend and Restricted Application claiming strategies.
The new rules do not take effect immediately. Also, the new rules do not impact those that already receive benefits. For example, I have a friend who receives Social Security benefits on a restricted application, her benefits will not change. Individuals who are at full retirement age (FRA) or will reach FRA by April 29, 2016 will have an opportunity to File-and-Suspend before the shutdown. (If you are eligible, you must file by April 29, 2016 or lose your benefits forever.) Moreover, anyone who was born in 1953 or earlier (or January 1, 1954) will still be able to apply for benefits on a Restricted Application for spousal (or divorced ex-spousal) benefits, even if the claimant does not file until years from today.
About ksindell
Kathleen Sindell, Ph.D. is the author of numerous academic, popular, and professional finance articles, Web sites, proposals, and books. This includes the bestselling reference book, "Investing Online for Dummies, Eds 1-5" (listed for two consecutive years on the Wall Street Journal's Bestselling Business Book List). Her most recent book "Social Security: Maximize your Benefits" has been listed in Amazon's Top 100 Bestselling Retirement Planning Books. It is important to note that "Social Security: Maximize Your Benefits, 2nd Edition" was just released.
Sindell has an in-depth understanding of the financial services industry and has held Series 7, 63, and 65 licenses. Dr. Sindell is regularly tapped as a financial services expert on ABC World News, The Nightly Business Report, and at popular online and print outlets. Kathleen Sindell, Ph.D. is a member of the Board of Directors for the Financial Planning Association, National Capital Area (FPA NCA), is on the Editorial Advisory Panel of the Journal of Financial Planning, and is Co-Chair of the Metro Washington Financial Planning Day. Sindell is a Course Chair II, CFP Program Academic Officer, and adjunct full-professor at the University of Maryland, UMUC, School of Undergraduate Studies.
Contact Information: ksindell@kathleensindell.com or 703-299-1700
