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I haven't been on the forum for quite a while, but have helped a few friends this month by explaining file and suspend, and advising them to do it before the window closes forever after April 30th, 2016.
What is File and Suspend, and who can do it?
File and Suspend is for people who have reached their Full Retirement Age, but do not want to collect benefits until a later date, usually age 70, but really at any month between their full retirement age and age 70.
It allows you to earn delayed retirement credits, but also will allow you much greater retroactivity than just going to SS at a certain date and then filing your claim.
Now, many on this forum, know about delaying their SS benefits and might have gone online or a SS office and filed only for their Medicare at 65. If your Medicare ends in a "T" (the letter after your SS# on your Medicare card), you did not do "file and suspend". If that is you, and you are now over age 66(FRA), you are earning the delayed retirement credits, but are limiting your options.
If your Medicare card has the letter "A" after your SS#, and you are not receiving checks, then you have done file and suspend.
What is the difference between the "T" and the "A" and why does it matter?
A person with a T has not filed a claim for any benefit payments (only for Medicare benefits) and is not protected for any benefit payments, until a claim has been filed. Once that claim is filed, if the person is under full retirement age (66), there is no retroactivity. If the person is already 66, there is retroactivity for 6 months, or back to FRA, whichever is less.
Meaning, if you are 66 and 5 months, and decide to file for benefits, it can, if you choose, only go back 5 months to age 66. But if you were age 67 and 8 months, and file a claim, it can, if you choose, only go back six months, to age 67 and 2 months.
A person with the "A" after their SS# on the Medicare card (don't confuse it with Part A- hospital benefits) - , and is not getting SS checks, that person has actually filed a claim for SS benefits, but chose to Suspend it.
So, that person, if at age 67 and 8 months, decides to un-suspend, they can choose any month between their filing date (or even 6 months prior to their filing date- if they were FRA or older in those months) and receive a lump sum back payment for all those benefits.
Why would I want to do that?
Because life changes on a dime, in the blink of an eye. This was brought home to me on a personal level, this past week, when my hubby had a medical emergency. This is a person who has not been to a doctor in decades. He walks 10 miles a day. In the matter of hours, he got a cat scan, an ultrasound, and a Xray. Each time the doctor came in, we were very fortunate- and were told we had nothing to worry about. They saw stuff, but not the bad stuff. He will be fine. and, it struck me, how concerned they were with relaying that info, because as we all know, very often, a test, such as those, reveals the worst.
Coincidentally, when arriving home, a single friend, the same age as my hubby, 66 +8, called me from across the country and asked about filing for his SS. He had the T after his SS on his Medicare card. He is still working and doesn't need the SS, so had no issues delaying his benefits. To be honest, since I am retired from SSA for a number of years, file and suspend, was not at the top of my brain. But, then I realized that this was the last month he could do it, and why not? I explained there is no "down side". You file, you suspend, and you earn your delayed retirement credits.
But, say, in a year from now, you are not fortunate and you hear you have a life threatening illness. You are advised you have a few months to live and told to get your affairs in order. In that case, after working your entire life, and not collecting a penny from SS, if you didn't do file and suspend, the most SS you would receive is 6 months retroactivity. But, by doing file and suspend, you can call SS, ask to unsuspend back to October, 2015 (6 months retro from April, 2016) and receive a lump sum (without the delayed retirement credits earned October 2015 and on- because now you have asked to get benefits, so you can't get the credits) but you get a check in your account for say $2200.00 (plug in your own amount) a month for 22 months or $48400.00. That $48400.00 can now be part of your estate, to leave to anyone you choose. For my friend, with no spouse, or children, he will probably choose his niece and nephew or his sister- his main, living relatives.
The point is, you have options. If you do have a spouse, if his or her own is greater than yours, well, then widow or widower's wouldn't come into play, so having the lump sum is an excellent option. If your spouse would need a higher SS and is eligible for more from you, once you die, you can pick a month that makes sense and maybe not go all the way back, but choose an interim month, so your spouse gets the benefits of some delayed retirement credits, but also a lump sum.
So, for anyone this applies to, call 1-800-772-1213, before April 30th, and make an appt. Even if SS gives you an appt. in May or June, the fact you made that call in April protects your right to file and suspend. On another forum called "can you do file and suspend online?", a person on this forum said you can- but you must write in remarks "I wish to suspend my benefits". She said the rep called her and went over everything, and she reiterated she wanted to file and suspend".
Unfortunately, when my friend called, the 800# rep told him erroneously that file and suspend did not apply to single people. I told him to call back, just make an appt, and the claims rep at the office will help him properly. He got an appt. for April 29th.
Then today, I called another friend, also my hubby's age, and he too only had the T. He has a kid who just started college, and a much younger wife. I explained file and suspend to him, and he is calling Monday to do it.
So, all you baby boomers- who are already 66 and not collecting. Time is running short! Protect your options, but let's hope you all "live long and prosper".
Another excellent explanation...
Glad to hear your husband has no serious health issue...
My husband did file,for his SS in November--past FRA of 66--and noted on the E-form he wanted to suspend benefits...within a few days he had a phone call from the St Louis SSA office and very nice caseworker completed his File/suspend but also took my restricted application for spousal benefits ( I was also over FRA of 66)...and I was able to get my prior 6 mo benefits...spousal can only go back 6 mo...
Very knowledgeable, pleasant young woman...
She said her area office had been given Texas and Oklahoma applicants after the info about the closing of SS claiming strategies would happen by end of April...lots of new applicants to handle...
I got about 8K lump sum and my monthly spousal in Dec...
I'm very sorry to read that your husband had a health scare. It's great news that it was nothing serious and he will be fine. I know how scary it can be to sit waiting for the test results and imagining the worst.
Thank you for all of your great information. It is very much appreciated.
I am 67 and filed/suspended in February so she could collect her spousal benefits. We went early because I didn't want any slip ups.
Wife will receive $744 which is what is left over after they take out her Medicare Part B
Reason she gets such a low amount is she receives a small $400/month state pension so they take $268 out of her social security payment. It's called the "pension offset" but I call it "the claw back".
I can hardly wait for this deadline to pass so I won't have to read reminders that some people (in the soon-to-be recent past) were allowed to File and Suspect their own benefits and allow them to grow whilst collecting Spousal Benefits. Such a provision would have been of great benefit to many divorced retirees in the future who will be struggling to make it on our own modest SS benefit amounts.
I'm seriously bummed that this option has been cancelled for all of us who were born too late, like me. But at least, once the deadline passes, I and all the other unlucky ones won't have to have our faces rubbed in it all the time!
Those options will soon be ancient history. Yet I can't help but marvel at the unjustified inequity that some retirees get to bolster their benefit amounts in this way and receive many $1000's in extra benefits, and others never can.
but by the same token why should someone who was married and now single get a bigger payment then someone single ?
making a career choice to stay home with kids as opposed to increasing a work record is a personal choice . i am sure many single folks who were never married took time off to care for parents but get nothing extra from their parents work record .
while it was a nice perk , the truth is ss put a lot of extra perks on being married which single folks never got and it was unfair .
having said that i am glad we will be able to take advantage of restricted application but that does not mean all these things are fair . but as we know life is never fair.
whenever things are changed their is always a certain cut off date and grandfathering . some will luck out and make it in time and some will not . that is just the breaks in life . as usual timing is everything .
Last edited by mathjak107; 04-25-2016 at 05:08 AM..
I can hardly wait for this deadline to pass so I won't have to read reminders that some people (in the soon-to-be recent past) were allowed to File and Suspect their own benefits and allow them to grow whilst collecting Spousal Benefits. Such a provision would have been of great benefit to many divorced retirees in the future who will be struggling to make it on our own modest SS benefit amounts.
I'm seriously bummed that this option has been cancelled for all of us who were born too late, like me. But at least, once the deadline passes, I and all the other unlucky ones won't have to have our faces rubbed in it all the time!
Those options will soon be ancient history. Yet I can't help but marvel at the unjustified inequity that some retirees get to bolster their benefit amounts in this way and receive many $1000's in extra benefits, and others never can.
Quote:
Originally Posted by mathjak107
but by the same token why should someone who was married and now single get a bigger payment then someone single ?
making a career choice to stay home with kids as opposed to increasing a work record is a personal choice . i am sure many single folks who were never married took time off to care for parents but get nothing extra from their parents work record .
while it was a nice perk , the truth is ss put a lot of extra perks on being married which single folks never got and it was unfair .
having said that i am glad we will be able to take advantage of restricted application but that does not mean all these things are fair . but as we know life is never fair.
whenever things are changed their is always a certain cut off date and grandfathering . some will luck out and make it in time and some will not . that is just the breaks in life . as usual timing is everything .
Yes, of course....that said, to me it is a sign of the times that these things will be coming much more often. I mean, I'm not complaining that my FRA is 67, am I? But yes, some got a better "deal" - at least I knew that was coming decades ago. More people should be complaining that the grandfathering period was basically nil on this one and barely in the news at all as it was being worked out - mostly in backrooms!
Take this as the sign that it is...life isn't fair but it is certainly fairer for some than others and we need to stop sitting back while the pundits say that "politicians wouldn't dare". They've already begun and done it by making it sound like some were doing something bad. Next thing up - back-door Roths - another unintended consequence.
I had read somewhere about the potential advantage to singles but the confirmation here (thanks, ilovemycat!!!) led me to call soc sec this morning. First call got dropped during the wait period even though still active on my end. Only knew it was over when the survey came on, wasted 40 min. Second call was answered within 10 min but I was told no phone appointments were available before end of May and I MUST complete the appointment BEFORE the END of April to do a file and suspend. Or I could go to a SocSec office, which for me is an hour drive a way (and probably a long wait in line).
Or file online and hope for the best, which I did. Fingers crossed.
Yes, of course....that said, to me it is a sign of the times that these things will be coming much more often. I mean, I'm not complaining that my FRA is 67, am I? But yes, some got a better "deal" - at least I knew that was coming decades ago. More people should be complaining that the grandfathering period was basically nil on this one and barely in the news at all as it was being worked out - mostly in backrooms!
Take this as the sign that it is...life isn't fair but it is certainly fairer for some than others and we need to stop sitting back while the pundits say that "politicians wouldn't dare". They've already begun and done it by making it sound like some were doing something bad. Next thing up - back-door Roths - another unintended consequence.
social security closed the loop hole a few years ago where you could pay back a lump sum to ss and refile at the higher benefit because :
a bunch of savvy folks realized that typically when you paid it back , you subtracted that amount off your yearly income . that left you in many cases with a lot of negative income for the year you couldn't carry over .
well these savvy folks realized you could do tax free roth conversions using up the negative income . so you got the higher benefit , the money interest free all those years , and the benefit of a tax free roth conversion as a result of paying it back . at that point it was killed off .
since so few folks actually delayed ss to make use of file and suspend or restricted application politically it was not to harmful . only 8% actually were using those perks if i remember what i read . .
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