File & Suspend Will Be No More
The budget bill that was finalized this week eliminates a strategy for social security recipients called “File and Suspend”. Under this strategy, the high income earner could file for benefits, allow his lower earning spouse to get benefits before full retirement age and then “suspend” their benefits until age 70 to lock in the additional 8% increase per year in benefits. This was a very popular strategy and as with many “popular” strategies, Congress or the President at some points views it as a “loophole” for the rich.
Persons nearing retirement age are still allowed to “File and Suspend” for another six months. After that, the strategy will no longer be allowed.
For a couple of good articles on this, see here and here.
Paul Neiffer, CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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