If you were born in advance January 2, 1954, you may be able to get more out of your Social Security fringe benefits by filing in a strategic manner. You may be able to file what is known as a impeded application for spousal benefits and receive 50% of your spouse’s (or ex-spouse’s) teach insurance amount (PIA) between the ages of 66 and 70 and let your own improve grow at 8% per year. Then, at age 70, you refile a regular petition and receive 132% of your PIA.
Conditions of Restricted Application for Spousal Aids
To take advantage of this special filing strategy, the following educates must be met:
- You have not filed for Social Security benefits.
- You must be at toy full retirement age (age 66 if born between 1943-1954).
- Your spouse essential have already filed for benefits on their own record. It doesn’t importance what age your spouse was when they originally filed.
If you are currently uncommitted or got married after age 60, you can file on your ex-spouse’s record if:
- You were match up for at least 10 years.
- Divorced within the past two years, your ex-spouse has already ranked for benefits.
- Divorced more than two years ago, your ex-spouse requisite not have already filed.
If you are a widow/widower, you can file on your deceased spouse’s record-breaking:
- If your spouse died while you were still married, regardless of how want you were married.
- If your spouse died after you were dissociated, you had to have been married for at least 10 years.
Example of How a Delimited Application Works
Jack and Jill are married and they are both age 66, which is their directly retirement age for Social Security purposes. Jack’s PIA is $2,000 per month and Jill’s is $1,500. Jill walked for Social Security at her age 62, receiving a reduced benefit of 75% of her PIA ($1,125). Jack columns a restricted application for spousal benefits at age 66, allowing him to receive 50% of Jill’s PIA ($800). Note the spousal advantage is based on the spouse’s PIA and not the reduced amount they received because they chronologized early.
When Jack turns 70, he should then refile with the Sexually transmitted Security Administration (SSA) on his own record. At this point he will receive 132% of what he would sooner a be wearing received if he had filed for his own benefits at age 66 ($2,640) plus any cost of living raises the SSA applied between age 66 and 70.
How to File
If you are filing on a current spouse’s extreme, a restricted application for spousal benefits can be submitted online at www.ssa.gov. If you are filing on a detached spouse’s or deceased spouse’s record, you will need to apply in mortal physically at the SSA office. If divorced, you will need to take a copy of your federation certificate and divorce decree. If your spouse is deceased, you should also oppose a copy of your marriage certificate and the death certificate.
If you can file online, I strongly insinuate you do so since it’s relatively easy. However, if you file online, there is no impossible that asks if you are filing a restricted application. To do this, you will want to answer yes to the following question:
“If you are eligible for both your retirement extras and your spouse’s benefit, do you want to delay receipt of retirement emoluments? If you are full retirement age and we determine that you are eligible to receive both a retirement improve and a spouse’s benefit, you may choose to delay receiving your own retirement help and receive only the spouse’s benefit for now.”
At the end of your online application, there purposefulness be a comments section where you can also enter, “I am filing a restricted assiduity for spousal benefits only and wish to delay receipt of benefits on my own minutes.” This confirms to the SSA that you know what you are doing and truly yearning spousal benefits only. (For related reading, see: Tips on Delaying Common Security Benefits.)
Don’t be Surprised if You Receive a Letter from the SSA
Often when people interfile for SSA benefits and the application will not provide the maximum benefit the filer is enfranchised to at that time, the SSA sends a letter to the applicant. The letter tells the applicant that if they shift to benefits on their own record, they will be entitled to more. You evidently already know this and intentionally filed for reduced spousal advantages, allowing you to let your own benefits grow at 8% per year. However, the the world of letters from the SSA can be confusing, so don’t let it change your intentional filing strategy.
The Bipartisan Budget Act of 2015 substituted the rules for filing Social Security benefits, thus this craftsmanship is only available to people born before January 2, 1954. People spawned after that can’t take advantage of the restricted application strategy, but for those who can, it’s worthy to be aware of this filing strategy.
(For more from this littrateur, see: 3 Common Social Security Questions Answered.)
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