We've read your book and think we have a good plan but we are still confused about spousal benefits. As of this writing I am 62 and my husband is 65 and will reach FRA in December of this year. Both of us are still working and plan to continue to do so until I reach FRA. My question is: When my husband reaches FRA can he file and suspend and then I file for spousal benefit AND keep on working?

Hi,

No. If your husband files for and suspends his benefits neither he nor you could receive benefits on his record while his benefits are suspended (https://www.ssa.gov/planners/retire/suspendfaq.html). Furthermore, whenever you file for spousal benefits you'll be deemed to also be filing for benefits on your own record, and you could only receive essentially the higher of those 2 benefit rates. Also, if you file for benefits before your full retirement age your benefit rate will be reduced for age, and your benefits could be subject to full or partial withholding if you're working and earn too much (https://www.ssa.gov/planners/retire/whileworking.html).

On the other hand, since your husband was apparently born before January 2 1954 he could potentially file just for spousal benefits only at his full retirement age (FRA) or older without being deemed to have also filed on his own record (https://www.ssa.gov/planners/retire/deemedfaq.html). But, your husband could only qualify for spousal benefits if you're drawing benefits on your own record. And, if you file for your benefits and keep working, both your benefits and your husband's spousal benefits would be subject to withholding if you earn too much prior to your FRA.

You and your husband should strongly consider using our maximization software to sort this all out for you so that you can determine which filing strategy would be optimal for the two of you.

Best, Jerry