Social Security what is the name of the other option beside File and suspend?
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Yes and perhaps no, I know all about the normal file and suspend as you say, where he will file and immediately suspend his benefit at 66 and I will file at 64. However I only recently discovered this claim and suspend where he does exactly the same thing and so do I, BUT if it looks like he will die before 70 or if we need a large cash amount, he can get back everything he would have been due from age 66 when he filed, but at the FRA amount, not the increased credit amount.
I am trying to find if there really is a different name for this or if it is still file and suspend but then you have the option to do as I said above and collect retroactive lump sum and then continue to recieve FRA minus any increase or you can choose not to get the retroactive lump sum and instead take the larger payments.
So I am not sure if this is one program with two separate options for collecting or two different programs. I do know you need to pay your part of medicare by check or you lose your suspend status and the increases.
My part of this will remain the same I will file at 64 for spousal benefits and get them until, assuming he goes first, he dies, then I will be forced to switch to widow's benefit whether I have reached 66 yet or not.
it is this possibility of getting the lump sum if needed instead of the extra credits that is what we are trying to sort out.
Yes and perhaps no, I know all about the normal file and suspend as you say, where he will file and immediately suspend his benefit at 66 and I will file at 64. However I only recently discovered this claim and suspend where he does exactly the same thing and so do I, BUT if it looks like he will die before 70 or if we need a large cash amount, he can get back everything he would have been due from age 66 when he filed, but at the FRA amount, not the increased credit amount.
I am trying to find if there really is a different name for this or if it is still file and suspend but then you have the option to do as I said above and collect retroactive lump sum and then continue to recieve FRA minus any increase or you can choose not to get the retroactive lump sum and instead take the larger payments.
So I am not sure if this is one program with two separate options for collecting or two different programs. I do know you need to pay your part of medicare by check or you lose your suspend status and the increases.
My part of this will remain the same I will file at 64 for spousal benefits and get them until, assuming he goes first, he dies, then I will be forced to switch to widow's benefit whether I have reached 66 yet or not.
it is this possibility of getting the lump sum if needed instead of the extra credits that is what we are trying to sort out.
Gotcha and I think this is is heading in the direction of what you want. 7 Social Security Sins
Quote:
Even if you don't intend to collect benefits until after age 66, don't forget to file by the time you reach full retirement age. If you don't wish to collect at that time, simply indicate that you want to suspend your benefits so they can keep growing.
Failing to file by 66 negates the possibility of earning a full lump-sum repayment if you later decide you'd rather have collected those suspended benefits (such as may occur if you suffer health problems in your late 60s). In that scenario, the lump-sum option will award you all you would have collected to that point at once, but this only works if you filed on time.
In addition, using a "file-and-suspend" strategy can also allow your spouse to begin collecting benefits while you continue working
It turns out that if you are older than your full retirement age when you first claim Social Security benefits, you may be entitled to up to six months of retroactive benefits paid as a lump sum.
Remember there are tax consequences for any decision along with long term income considerations.
Remember there are tax consequences for any decision along with long term income considerations.
Ok that first quote is the one I was talking about the second referrs to if you did not file at full retirement age and suspend, then you file later, all they will give you is up to 6 mo. backpay [say for instance you file at 69].
However, if you DID file on time they give you all you would have gotten since you filed.
As for the tax implications don't know what they would be then but perhaps there would be a five year averaging available or something similiar. anyway it would have been taxed if he were still working and if he were not able to work we would already be on LT disabilty and so collecting already and so the other would be a moot point.
As for my receiving the FRA benefit, minus the extra credits if we did the file and suspend but took the lump sum at some point, the amount of the lump sum would take a lot of years to make up the missing extra credits and I don't figure to live long either, in fact with us it is a race to see who dies first. We both are going to require assistance, I just hope I outlive him as I hope to be able to be his caregiver as he declines, I just hope I can manage it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
