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Christopher B, Esq.
Christopher B, Esq., Attorney
Category: Social Security
Satisfied Customers: 2677
Experience:  associate attorney
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Can I get a lump sum payout of my SS

Customer Question

Can I get a lump sum payout of my SS
Submitted: 10 months ago.
Category: Social Security
Expert:  Christopher B, Esq. replied 10 months ago.

My name is***** and I will be helping you with your question today. This is for informational purposes only and does not establish an attorney client relationship.

I believe you are talking about the changes that will take effect on May 1, 2016 and these changes do not allow for a lump sum (neither do any other SS rules except if you have suspended your SS benefits at full retirement age and decided to take them at a later date - SS would retroactively make back payments). The changes made in the bipartisan act are being hyped in the media but it is only a small loophole that is being closed. It is not a magical lump sum that has to be elected and deals with "file and suspend" spousal benefits and the "restricted benefit". Let me explain, a spouse can only take the spousal benefit if the other spouse has elected to take their benefit. Another requirement is that the spouse must be at least age 62 or have a qualifying child in her/his care. By a qualifying child, social security means a child who is under age 16 or who receives Social Security disability benefits. Currently the law is changing and a "suspend and file" cannot be elected starting on may 1, 2016. In this circumstance at full retirement age (66) one could file and suspend their benefits and continue earning credits until age 70 and their spouse could elect to take the spousal benefit. The spousal benefit can be as much as half of the worker's "primary insurance amount," depending on the spouse's age at retirement. If the spouse begins receiving benefits before "normal (or full) retirement age," the spouse will receive a reduced benefit. However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced. Also the "restricted benefit" is being eliminated. If you turned age 62 be the end of December 31, 2015, you would be grandfathered in and at full retirement age you will still be able to restrict your benefit. This means that if you or your spouse would like to elect to take only the spousal benefit as opposed to your normal retirement benefit, you can restrict your election to ONLY the spousal benefit. This would allow you to collect the 50% spousal benefit while still gaining credits to your normal retirement benefit from ages 66-70 (the credit increases your benefit approximately 8% per year). After the law changes, at full retirement age, you would have to take the higher of the spousal benefit and your retirement benefit. You can no longer choose just the spousal and let your normal retirement benefit grow while still take the spousal benefit. To answer your question, no you cannot get a lump sum unless you have suspended your benefits and decided later to take it back at your full retirement age.

Please let me know if you have any further questions and please positively rate my answer if satisfied.

Expert:  Christopher B, Esq. replied 9 months ago.

Just checking back in, do you have any further questions?

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