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Ask Lane Your Own Question
Category: Social Security
Satisfied Customers: 12452
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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What changes to Social Security benefits be come effective

Customer Question

What changes to Social Security benefits be come effective April 30 2016.
Submitted: 1 year ago.
Category: Social Security
Expert:  Lane replied 1 year ago.
Hi,...First of all, the changes only affect those that have not yet filed (by April 29)...The elimination of File-and-Suspend strategy – will apply for anyone who first requests for a voluntary suspension of benefits on April 30 or later. As a result, anyone who wants to be “grandfathered” under the old (current, and more favorable) rules has less than two weeks to complete their Social Security application and suspension request by the April 29 deadline....So this is only about those who have at least met the full retirement age of 66, and is not yet age 70....So again, the tactic is a moot point (does not apply) for anyone who has already claimed benefits, or who doesn’t plan to delay benefits going forward...THis is ALSO NOT RELEVANT for widows (who don’t need file-and-suspend to coordinate between retirement and survivor benefits), nor is it relevant for divorcees (who rely on the Restricted Application strategy instead, which remains available after April 29 for anyone who was born in 1953 or prior)...Actually the original reason for of voluntary suspension was for a worker who had started benefits early ( age 62) to change their mind later and stop benefits in order to go back to work (under the “Freedom To Work” Act)....Of course, later, after the rule was enacted, financial planners and others observed that voluntary suspension could happen immediately after someone filed, too. (Doing so would mean the worker would never get a single benefit check, but the advantage was that by filing, a spouse could become entitled to spousal benefits, and the original worker could still earn the maximum delayed retirement credits by waiting on their own benefit....However, Congress viewed this File-And-Suspend tactic as an unintended consequence and a “loophole” of the voluntary suspension rule, given that in the system’s original framework, which had existed for decades, entitlement to spousal benefits was always supposed to coincide with the workers’ own retirement benefit (not be a scenario where you can get one while delaying the other)....SO, in this time of budgetary crisis and setbacks, they put a stop to it....Hope that helps to provide EXACTLY what this is all about....So, again, this is only about those who have at least met the full retirement age of 66, and is not yet age 70....Let me know if you have questions
Expert:  Lane replied 1 year ago.
Again, I hope this has helped....Please let me know if you have any questions at all....If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit That’s the only way JustAnswer will credit us for the work here....Thank you!Lane……I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986
Expert:  Lane replied 1 year ago.
Did you see my answer?