Covisum Blog

The 2016 budget makes sweeping changes to Social Security claiming rules for retirees surrounding the Restricted Application and the Voluntary Suspension. Changes to the Restricted Application

The proposed 2016 budget makes two highly significant changes to Social Security claiming rules. Section 831(a) eliminates the restricted application strategy by requiring that anyone who files for any benefit be “deemed” as though they are filing for all benefits for which they are eligible. Section 831(b) modifies voluntary suspension by requiring that any benefits for any auxiliary be stopped when the primary wage earner suspends his own benefit. Under prior rules, a voluntary suspension only stopped the checks of the person who suspended their benefits, while auxiliaries such as spouses and children could continue to collect their checks.

The 2016 Social Security Administration Fact Sheet is now available. Don’t get caught off guard with questions about the maximum taxable earnings limits or the retirement earnings test exempt amounts. Print your copy of the fact sheet and have it readily available to answer your clients’ questions.

When an individual or a couple decides how and when to claim their Social Security benefits, life expectancy is one of the foundational factors that must be considered. Americans are living longer, and nearly half of them claim their retirement benefits as early as possible. Nearly all of the remainder claim their benefits prior to their full retirement age.