Will this Strategy Invoke Deeming?

Jul 10 2016 - 8:00pm

Hi, I turned 66 in January 2016 and have an FRA retirement benefit of $2100 but I plan to wait until 7 to draw my benefit. My wife will turn 62 in Oct 2016 with FRA retirement benefit of $590 and she wants to collect at age 62 the reduced benefit of $440. She accepts this reduced benefit until she can file spousal benefits (at near her FRA) when I take my benefit. My question is: Can I file and restrict to spousal benefits after my wife has filed for her early benefit without causing SSA to invoke the "Deemed Filing for Spousal" clause on her benefits? Thanks, Terry

Terry, since you are past your full retirement age (FRA), you can file just for your spousal benefit once your wife files for her retirement benefit. And since you were born before January 2 1954, you would only be deemed if you filed before your FRA. Note that if your wife files for her retirement benefit early, it will be permanently reduced and her total spousal benefit will also be reduced below what it would be if she does not file for her retirement benefit before her FRA. Our software can determine your maximized strategy and will let you enter alternative what-if scenarios to see how they compare. Thanks, John