Am I Allowed To File And Suspend?

Category: 
Apr 27 2017 - 6:54am

I will be turning FRA (66) in August 2017. My long-time, trusted CPA/Financial Planner recommended to file and suspend until age 70. Last year, I learned about the Bipartisan Act of 2015 and found out that I was a few months "too young" to apply for the file and suspend benefit that expired in April 2016. When I called Social Security three weeks ago, I was informed that I did not qualify for the file and suspend option because I am single and without children. In all the research I did a year ago, I did not read about this exception. Please advise if this exception is true and where this exception may be found in the Bipartisan Act of 2015. I have read the first edition of Get What's Yours book , and am in the process of reading and reviewing parts of the 2016 updated version with the new rules. Please direct me to specific sections in the latest edition of Get What's Yours book that will help clarify this matter. Any assistance with this inquiry is most appreciated.

Hi,

You are eligible to file and suspend your retirement benefits when you reach full retirement age, but there is almost certainly no reason for you to do so under the new voluntary suspension rules (https://www.ssa.gov/planners/retire/suspendfaq.html). You will accrue delayed retirement credits in the exact same manner whether you file and suspend, or simply defer filing for your retirement benefits.

Furthermore, if you file and suspend your benefits, you can't reinstate them until the month after the month in which you request reinstatement. On the other hand, if you simply defer filing an application for retirement benefits, you could potentially claim benefits for up to 6 months retroactively from when you do eventually apply for benefits. This would give you more flexibility in the event of an unexpected illness, for example.

Best, Jerry