This morning the senate passed a 2 year budget bill which includes a provision to address what is termed a 'loophole'. It relates to benefits for those who file and suspend. The pertinent sections are:
Section 831 (a) - anyone who files for any benefit is deemed to have filed for all benefits.
Section 831 (b) any benefits for an auxiliary (spousal payments) must be stopped when primary suspends.
Prior to this people have one spouse file and suspend payments to accumulate a bonus to payments of upto 8% per year for 3 years. This bonus is then retained throughout the remainder of their natural life. This strategy now requires a complete revaluation.
Note that the 'deemed' part refers to the age of the person. It only applies to those 62 or under today. For those who are near that age and have a plan in place for file/suspend, you'll need to start it over again.. I chatted with a team today who provides advisor tools for SS analysis and they informed me they are recoding their product over the weekend, and all advisors should create new plans based on this.
Note it still requires POTUS to sign off, but that seems a given.
Full Document Attached, pertinent pages from 72.
asshat-FQF
Section 831 (a) - anyone who files for any benefit is deemed to have filed for all benefits.
Section 831 (b) any benefits for an auxiliary (spousal payments) must be stopped when primary suspends.
Prior to this people have one spouse file and suspend payments to accumulate a bonus to payments of upto 8% per year for 3 years. This bonus is then retained throughout the remainder of their natural life. This strategy now requires a complete revaluation.
Note that the 'deemed' part refers to the age of the person. It only applies to those 62 or under today. For those who are near that age and have a plan in place for file/suspend, you'll need to start it over again.. I chatted with a team today who provides advisor tools for SS analysis and they informed me they are recoding their product over the weekend, and all advisors should create new plans based on this.
Note it still requires POTUS to sign off, but that seems a given.
Full Document Attached, pertinent pages from 72.
asshat-FQF
Attachments
-
350.7 KB Views: 5