Facebook
LinkedIn
Close
Back

Client Login

- Individual Clients
- Business Clients
- Client Employee


Forgot Your Password? Please try logging in with the last password you remember first. (If that fails, you'll be able to reset your password on the next page.)

QuickBooks Online

Client Forms

Video Meeting

Join a scheduled video meeting with our staff.
Join Meeting
Close
Send Request

Blog

Social Security Shuts Down the File and Suspend Procedure

April 20, 2016

In November, 2015 a new law was enacted that closed a long time tactic within the Social Security system popularly known as the File and Suspend strategy. With this method, a spouse could receive spousal benefits while the other spouse takes advantage of a provision that allowed his or her monthly Social Security to grow.

For example, a husband could file a claim for Social Security and immediately suspend his or her payments, which opened the door for his wife to claim spousal benefits. By suspending his payments, the husband’s monthly benefit would continue to receive an annual increase until he ends the suspension or reached age 70. Experts suggest that under this strategy from age 66 to 70 one would get what essentially amounts to an 8 percent increase in monthly payment amounts each year the benefits are delayed. Of course, for a married couple, spousal benefits are only applicable once a Social Security claim has been filed.

In a posting to its web site in late February, 2016 the Social Security Administration pointed out the interpretation of the new claiming rules enacted last November.

As of April 30, 2016 no one younger than 62 at the end of 2015 can avoid the agency’s deeming rules, which means they cannot claim only one benefit at a time. Thus no longer can one spouse file for spousal benefits and the other spouse file and suspend his or her retirement benefit at full benefit age.

Those who will not be affected by the rule change would appear to be: (A) Anyone who has already claimed benefits before April 30. If one submits a request by that date, and their spouse or children become entitled to benefits either before or after that date, they will not be cut off by the new rules and will continue to receive payments; (B) Anyone who will reach full retirement age (66 right now) on or before April 29, 2016 will continue to be able to use the File and Suspend strategy; and (C) Anyone who was 62 or older as of January 1, 2016 will be able to continue to file a restricted application at his or her full retirement age for just their spousal benefit, while deferring their own retirement benefits. They will not be subject to the agency’s new deeming rules.

File and Suspend is still part of Social Security but it is limited to the worker only, of those 66 and younger after that May 1, 2016. After that the File and Suspend strategy will allow a worker who had started receiving benefits to suspend those benefits to accrue delayed retirement benefits from that point until the worker begins benefits again, up to age 70. Suspending benefits for a worker will now suspend benefits for everyone involved not just the worker. A spouse and/or qualifying children will be allowed to collect a social security benefit on a worker’s record only when that worker himself or herself is actually receiving benefits.

Those readers who are couples and in the age group eligible for and considering applying for social Security benefits should consult their advisers as soon as possible because April 30, 2016 rapidly approaches.

Back to List


Recent Posts

Thinking about retiring? Here’s an easy 5-step calculation to see where you stand.

Enjoy the deals without the Black Friday rush this year

What you need to know about the new overtime rule

Launching another business? Be sure to cover a few business basics…

3 cybersecurity tips to protect your small business

De-stress your workday!

About to get grillin' for Labor Day? Mind a few of our safety tips first.

Back to school on a budget: 4 solid tips to save you money

$700 million is what Equifax will pay out as a result of its data breach. Make sure you get your share.

Deducting kid’s summer camp and daycare costs under the Child and Dependent Care Credit

Traveling safe: Tips to keep you secure while on the road

Get up, get out and have some cost-effective fun this summer!

June is National Safety Month! Tips for augmenting your marketing efforts.

Tapping into a 529 plan for the first time? Tips for parents of college-bound grads…

Tips for building a company culture that supports remote workers

Tax refund on the way? Use it to fortify your financial future.

Take advantage of these Tax Day deals

It’s spring! Reboot your enthusiasm with these tips…

5 tips to dial down distractions

4 reasons to file your return early

A few key tax reform provisions every business owner should know about

Ways to skinny down Super Bowl Sunday

On your mark, get set…GO prepare for tax season

5 tips to mitigate paying taxes on Social Security benefits

New IRS warning: Email scams will surge this holiday season

Minimize the hustle and bustle and stay on budget this holiday season

Spreading the feeling of gratitude

Ramp up awareness to ‘shop small’ on Small Business Saturday this month

Important Update: 1099 Reporting for 2018

Bring in extra traffic with some trick-or-treat action

Recognizing Women-Owned Small Businesses Everywhere!

Take Advantage of the September Slowdown

Reminder: Q3 Tax Estimate is Due Soon!

Dinner, Drinks and Deductions

Back to School on a Budget

Healthy Summer Eating Made Easy – Part II

5 Tips to Eat Healthy While on Vacation this Summer

5 Tips to Get Kids Out of Technology and Into Nature this Summer

Ideas for Multigenerational Family Vacations this Summer

Your Smartphone Preparedness Travel Guide

Facing the Facts: How to Interpret Facial Expressions at Work

Summer is Just Around the Corner— And So Are Potential Childcare Tax Credits

Employee Recognition – A Great Way to Motivate Your Staff!

Receiving a Tax Refund? Spend It Wisely With These Tips!

Spring Cleaning Time is Here! An Easy 3-Step Checklist for Cleaning Your Office

Disappearing Tax Deductions! Don’t Miss Them on Your 2017 Tax Return

Tips to Boost Client Appreciation Efforts… Even When Time is Tight

Considering Hiring a Cybersecurity Professional? Here’s What to Look For.

Need Help Trying to Make New Habits Stick? Try These Simple Tips…

Quick Tips to Help You Tackle Your Taxes with Ease

5 tips to mitigate paying taxes on Social Security benefits

Tips to Help You Truly Enjoy the Most Wonderful—and Overwhelming—Time of the Year

Tax Reform Update: A Snapshot of Key Proposals in the GOP Bill

Tips to Simplify Your Thanksgiving Spread

Plan Now and Take Advantage of 2017 Tax Savings

Simplify Seasonal Staffing with these Smart Strategies

5 Tips to Reset Your Stress Response

Proposed Tax Reform Plan: What Could It Mean for You?

Impacted by the Equifax Hack? Take These Steps Now!

Tips for Maximizing the Value of Your Next Staff Retreat

Free Money-Saving Apps for Every College Student

Expert Advice to Keep Your Internet-Enabled Devices Safe from Cyber Criminals

Be Alert and Aware: Tax Scammers Don’t Take a Summer Vacation

Reduce Certain Summertime Costs with the Child and Dependent Care Tax Credit

Illinois Income Tax Act

Tips for Implementing a Successful Flex-time Schedule this Summer

Four Money-Saving Mid-Year Financial Planning Tips

How to Protect Your Business from the Next “Wanna Cry” Attack

Tips to Help You Stem the Flow of Potential Risks This Flood Season

How to Really “Clean Up” at Your Next Yard Sale

Take Your Spring Cleaning to the Office with These Tips

These Tax Day Treats Shine Light at the End of the “Tax Season Tunnel”

Do You Sit All Day? Take a Stand Against a Sedentary Lifestyle

Set the Stage to Help Your Home Sell This Spring

Avoid March Madness—Why You Should File Your Taxes Now

Home Improvements as Medical Expenses

Small Businesses Can Restart Health Reimbursement Accounts in 2017

Tips to Defend Your Business from Cyber Attacks

Break Barriers in 2017 with These Mind-Changing Mini Resolutions

Keep the Holidays Merry with These Simple Stress Relievers

Obama’s New Overtime Pay Rule is On Pause—What Does it Mean for Your Business?

Take Note of New Business Tax Deadlines in 2017

Help for College Bills?

Five Key Areas Every Business Owner Should Review Before Year End

Start Holiday Gift Giving for the Kids with an IRA Contribution

Don’t Let Year-End Cost-Cutting Derail Your Business Goals

Mom Needs Help. What Now?

Wondering About Tax Deductions for Political Contributions? Here’s the Lowdown

Take Note! The Filing Deadline for W-2s and 1099s is January 31 in 2017

The World is Chipping Away at Credit Card Fraud—But Individual Vigilance is Still Key

Before the First School Bell Rings, It’s Time to Reset the Alarm Clock

Is it Time to Revisit Roth IRAs?

Getting Married this Year? Here’s Your Tax Tip Sheet

Key Lessons from the Financial Fallout of the ‘Brexit’ Vote

Smart Strategies to Handle the “Downfall” Problem 1 in 4 New Businesses Experience

IRS Fights Scammers – Instructs Staff to Initiate All Future Audits by Mail; Never by Telephone

Premium Tax Credit Update

No Time to Garden? Try These Time-Saving Tips

Overtime Pay Eligibility Expanded – What Businesses Need to Know

Sleep on This! Think Quality Not Quantity When It Comes to Shut-Eye

Be $1,000 Richer by Next Year with These Simple Savings Strategies

Social Security Shuts Down the File and Suspend Procedure

5 Actions to Reduce Cyber Liability Risks in Your Business Today

Final Check – Did You Claim Every Eligible Tax Deduction?

Five Snacks to Spring Clean your Body and Mind

Make Your Spring Break Worry-Free with These Home Security Tips

Tax Season is Scam Season... Keep Your Information Safe!

Identity Protection PIN Letters List Incorrect Tax Year

Getting Over It… Quick Tips for Beating the Post-Holiday Slump

2016 Mileage Rate Notice

Customer Service Goes Social—Is Your Business Prepared?

Year End Tax Planning for 2015

IRS Simplifies Filing and Recordkeeping for Small Business – Hooray!

Tis the Season! Avoid Common Holiday Scams with These Tips

The Key to Scoring on Black Friday? Create a Pre-Game Plan

Time for the RMD Withdrawal

It’s Tax Planning Time—Here Are Some Money-Saving Tips for Individuals and Businesses

4 Steps to Finding the Sweet Spot for Success

To “B” or not to “B”

Income Tax Planning for Trusts

Health Care Coverage and Small Business

Ease Aches, Pains and Worker’s Comp Claims with These Ergonomics Tips

Spending Less Cash on Gas? Use Your Savings to Rev-Up Your Finances

New Tax Law More Than Doubles Fines for Failure to File Information Returns and Failure to Provide Payee Statements

Highway Funding Bill Ushers in New Tax Return Due Dates and Other Important Changes

Not Sure Which Metrics Are Right for Your Business? Help is Here!

Plan in Advance to Help Aging Parents Manage Their Money

Income Tax Planning for Trusts

Four Ways Mid-Year Financial Planning Can Pay Off

The IRS and Identity Theft

Love and Taxes

Our New Website

New Standard Mileage Rates Now Available; Business Rate to Rise in 2015

Individual Tax Planning

Many Retirement Plan Dollar Limits are Changed for 2015

Social Security wage base increases to $118,500 for 2015

Home Office Deduction

Nanny Taxes are not just for nannies

Does your Employer Treat You as an Employee?

Net Investment Income Tax

Foreign bank account and financial reporting requirements

State Taxes

Defective Grantor Trusts: Efficient Estate Freezing Tool

Tax Deductions

Latest from Our Blog