3 Replies Latest reply on Aug 7, 2012 8:34 PM by Chrysalis

    File and suspend

    Gulfgirl
      Anyone know much about file and suspend? I am 64, working part time, with earnings history higher than my husband, age 61 and retired. I wonder about filing for social security and immediately suspending benefits. Any advantage to this strategy?
        • Re: File and suspend
          Chrysalis
          I chose to file for social security when I turned 62 primarily because I don't trust that SS will still be there in its current form when I get to 65.5. I figure that once I'm in the system, I will be "grandfathered in" and so may avoid (perhaps) some future restrictions on the system. In addition, as a freelancer, my income changes every year. Social Security will provide a financial cushion for me in a bad year.  However, I do intend to keep working and I hope to earn more than the yearly earnings allowance. 
           
          What I learned from the SS office is that they send you a check every month, but at the end of the year they get your income from your IRS return. Come April (or whenever you file), if your income has exceeded the allowed SS earnings amount, they suspend your payments until the overage has been eliminated.  Then they add back that money to your SS account so that when your earnings really do go down to "retirement" levels, your monthly benefit will be a little higher. 
           
          Given that this is the system, I don't see any advantage in "File and suspend". The SS office will suspend your payments automatically if you exceed the annual earnings limit. But perhaps somebody else knows more about this than I do.  
          • Re: File and suspend
            yair51
            Gulfgirl said...
            Anyone know much about file and suspend? I am 64, working part time, with earnings history higher than my husband, age 61 and retired. I wonder about filing for social security and immediately suspending benefits. Any advantage to this strategy?
            I don't think Crysalis understood the "file and suspend question. Here is a good article that describes it. http://www.oregonlive.com/finance/index.ssf/2012/05/retiring_couples_a_social_secu.html