Can A Married Couple Work And Draw Ss

UPDATE: A new law that will go into effect on Apr 29, 2016, will eliminate this strategy. Nether the new law a spouse cannot begin receiving benefits until the worker is actually receiving benefits, too. Workers can still file and suspend, only spouses (or other dependents, including minor and disabled children) cannot receive benefits during the suspension. The law does not affect workers who have already filed and suspended benefits before the effective engagement. Workers who are at least 66 or will turn 66 before the effective appointment of the law may notwithstanding file and append in order to trigger benefits for their spouse.

Are yous married, with ane spouse wanting to retire but the other one prepared to keep working? If then, you should take a close look at the "file and suspend" strategy to maximize your Social Security benefits.

Spouses are entitled to Social Security benefits on their husband or wife's work record provided the union lasted at least 10 years. If the spouse who is not working or who wants to stop working is at total retirement age or caring for a kid who is nether 16 years old, he or she is entitled to an amount equal to one-half of the working spouse's full retirement benefit. If the not-working spouse takes the working spouse's benefits before his or her own full retirement age, the amount received will exist reduced.

In order to receive the spousal benefit, the working spouse must have filed for Social Security retirement benefits. Simply the working spouse can continue working using the file and suspend strategy, which can be used as long equally the worker has reached full retirement age (age 66 for those born between 1943 and 1954).

It works this way: the working spouse files for benefits and so immediately suspends them. Once the worker suspends benefits, the non-working spouse tin can brainstorm receiving spousal benefits while the worker continues to work. The longer the worker delays retirement, the more delayed retirement credits he or she will accumulate. Social Security benefits can increment past as much as 8 percent a yr (depending on appointment of nascence) if a worker delays retirement beyond full retirement age.

Example: Hubby and wife are at full retirement age. Married woman wants to first collecting benefits and husband wants to continue working. If married man retired now, he would receive $2,000 a month. Husband files for benefits and immediately suspends. Wife files for spousal benefits. She receives $1,000 a month on his piece of work record. Husband continues to work and retires at age 70. When he retires, he can get every bit much as $two,800 a month in benefits.

This strategy can work either if y'all, as the non-working spouse, are retiring early on or if y'all are retiring at your full retirement age, only for it to be to your reward you must receive lower benefits on your ain record than on your spouse'southward record. If you lot retire earlier your full retirement age, Social Security will automatically give you whichever do good is higher--your own benefit or the spousal do good. If your ain benefits are higher and those are what you receive, yous won't keep to build up delayed retirement credits. If you retire at full retirement age, y'all tin can choose which benefit to take. This allows you to take a spousal benefit while your worker'due south do good accrues delayed retirement credits.

Example: Husband and wife are both at full retirement age. Husband'southward benefit is $2,000 a calendar month. Wife would receive $900 a month in benefits if she received benefits on her ain work record. Husband files and suspends. Wife receives $i,000 a month of spousal benefits on husband's piece of work tape. At 70, married woman tin claim on her ain record which, because of delayed retirement credits, will take grown to more $1,000 a month.

While it may sound complicated to file for worker benefits, apply for spousal benefits, and then suspend worker benefits, it can be done in i visit to your Social Security part. For more information almost suspending benefits, click here.

For more information nearly Social Security benefits, click here.

This isn't the all-time strategy for everyone. To find out if will work for you, contact your elder constabulary chaser.

Terminal Modified: 02/24/2016

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