As of November 2, 2015, Congress signed into law the B-Partisan Budget Act of 2015 that could affect your Social Security benefits. In order to better explain the changes, we have divided the new changes into two tiers. In four years these changes will be phased out, and the options that are available to those in the two tiers, will no longer be available.
TIER #1
This tier includes those individuals that will turn age 66 by April 30, 2016. Some say May 1, 2016, but we choose to be on the safe side. If you are born on May 1st, call us and we will talk. Anyway, if you fall into this category, you will still be able to File and Suspend and use the Restricted Application in filing for your benefits. You must be Full Retirement Age to qualify for these benefits. If you don’t know what we are talking about, go to our website at www.pillarsllc.com for a detailed explanation. These tools are great avenues available to improve on your income through the rest of your life, as well as improving the survivor benefit for your spouse.
TIER #2
These tiers of individuals are those that will turn age 62 by the end of this calendar year (December 31, 2015). These individuals may still file a Restricted Application for Spousal benefits, but the other party must have already filed and be receiving benefits. These same exceptions apply to any Family Benefits that would be applied for. So, only one of the couple may receive spousal benefits and allow their benefit to increase by 8% per year until they decide to file. You must be Full Retirement Age in order to file for these benefits.
How will this affect me? It depends on the amount of your benefit, your age differences, and what flexibility you have in filing dates. People that fall into one of the above categories certainly need professional advice about how to file, as these opportunities will probably never be available again in our lifetime. DO NOT MISS THESE DEADLINES!!
Some other things you need to ponder….what if my wife and I are in different tiers? What if I want to file prior to Full Retirement Age? What if there is a large age difference? How have benefits been changed for the Divorced individual?
We will try to touch on the above topics in our upcoming articles. If you would like to talk to us about your situation, or have an analysis prepared based on the new laws, please feel free to contact Roy and Diane Thompson at 601-954-0699 or dthompson@pillarsllc.com.
