Bipartisan Budget Act of 2015 was signed
November 2nd. Common filing strategies currently
offered will no longer apply starting in
This presents you with an opportunity to
make sure you understand how you may be
impacted by these changes. Continue to rely
on Cornerstone Financial Planning, LLC as
your source for Social Security information,
strategies, and how to best work with your
clients. Below is a summary of the recent
File and Suspend:
• Currently: A filer who is at or
past Full Retirement Age (FRA), can file
for individual benefits, but suspend receiving
them and allow a spouse or dependent to
collect off of their record.
• Through April 30, 2016: Anyone 66
or older can still file and suspend to allow
an eligible spouse or dependent to collect
a benefit off their record under the old
• After April 30, 2016: “File
and suspend” will no longer enable
a spouse or dependent to collect benefits
off of the filer’s record, unless
the filer takes a benefit. For a spouse
or dependent to collect a benefit, filers
must collect their own benefit and forgo
delayed retirement credits. If an individual
suspends benefits, all spousal and dependent
benefits will be suspended.
Application for Spousal Benefits
• Currently: A spouse who is at or
past FRA, and who has not received any benefits,
---- A spousal benefit only (referred to
as a Restricted Application).
---- His or her own individual benefit.
• Anyone 62+ by the end of 2015: Is
grandfathered and retains the ability to
restrict their claim to spousal benefits
only if they wait to collect until they
reach their FRA.
• After year-end 2015: Individuals
who are younger than 62 will not have the
choice of which benefit they collect when
they reach FRA. Regardless of their age,
they will be “deemed” to have
filed for the highest benefit. They will
no longer have the option to restrict their
benefit to their spousal benefit only.
Lump Sum Voluntary Reinstatement
• Currently: An individual who files
and suspends can request that all suspended
payments be paid in a single lump sum.
• Through April 30, 2016: Individuals
who will be at least age 66, and want to
utilize this strategy, will need to file
and suspend benefits.
• Individuals who file and suspend
benefits after April 30, 2016 will no longer
be able to request a lump sum payment of
all suspended benefits.