Covisum Blog

After passage of the Bipartisan Budget Act of 2015 many advisors have asked us how do the changes in the new law affect the future of advisors who offer advice on Social Security claiming strategies. We’ve been asked repeatedly if these changes represent “the end of Social Security claiming advice?” Our answer is a resounding “no!” In fact, we look at these changes as a marketing opportunity for advisors, especially for those of you who have decided to make Social Security timing decisions a centerpiece of your financial practice.

Social Security Timing® updated its software as the budget deal was being finalized, so that you were able to give up-to-date information to clients as soon as the law went into effect Nov. 2. We continue to modify the software to make it the best in the industry. Many of these recent updates are the direct result of subscriber suggestions. Review those initial updates here, and be sure to read below, for additional updates made since then.

Learn how the Bipartisan Budget Act of 2015 impacts your clients. In this webinar, Joe Elsasser, creator of Social Security Timing®, discusses how the budget deal dramatically changes two claiming strategies, who is impacted and how you should communicate these changes to your existing client base.

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.