Did Congress Just Kill Your Social Security Strategy?

If you were hoping to execute a ‘File and Suspend’ collection strategy of your Social Security benefits, you only have a few months remaining. Under this week’s budget legislation, Congress is killing off the various “File and Suspend” and “Restricted Application” strategies to allow spousal and dependent benefits to be paid while still earning delayed retirement credits, with just a 6-month window before the limitations start to take effect.

The File and Suspend strategy was originally passed by Congress as part of the Senior Citizens Freedom to Work Act in 2000 to allow those who had already started Social Security benefits to stop their payments and earn delayed retirement credits. In the process, however, the new voluntary suspension rules unleashed several additional Social Security claiming strategies, including various “claim now, claim more later” tactics that involved File-and-Suspend and Restricted Applications for spousal benefits.