Lump sum

My parents died a number of years ago. I never filed a burial benefits. Is there a time limit to file ?

Hi,

I'm sorry for your loss.

Social Security doesn't really pay a burial benefit, but there is a one-time death benefit of $255 that can be paid to certain survivors. However, the death benefit can only be paid if an application is filed within 2 years of the deceased person's death (https://www.ssa.gov/OP_Home/handbook/handbook.15/handbook-1517.html).

Assuming that the file & suspend strategy for singles will still be available (I was 64 on 1/1/16) when I reach FRA, if I suspend at 66 and "unsuspend" at 69 1/2, the lump sum payout would be around $90K and, thanks to you and your co-authors, I do understand that my monthly benefit reverts to the FRA amount. But my question is: What is the best strategy to handle that $90K sum? I'd hate to see it fully taxable in one year. I plan to still be working, so what would you recommend for investing it? Don't want to play the market. Thanks, Cathy