File and suspend

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
User avatar
Topic Author
coachz
Posts: 1048
Joined: Wed Apr 04, 2007 7:10 am
Location: Charleston, SC

File and suspend

Post by coachz »

For the situation where the wife is 4 years older than the husband and wife's salary is $75k and husbands is $85k, what would be the best strategy?

Its the wife files and suspends at age 66 and the husband claims special benefits he would lock in reduced rates forever so that doesn't make sense.
LeeMKE
Posts: 2233
Joined: Mon Oct 14, 2013 9:40 pm

Re: File and suspend

Post by LeeMKE »

http://individual.troweprice.com/public ... 20Security

We are even closer in income and age, and this calculator was excellent help.
The mightiest Oak is just a nut who stayed the course.
User avatar
Topic Author
coachz
Posts: 1048
Joined: Wed Apr 04, 2007 7:10 am
Location: Charleston, SC

Re: File and suspend

Post by coachz »

Totally helpful. Thanks, wife files at 70 and I take spousal at FRA until 70 when I file then for full benefits. Thanks!
User avatar
ResearchMed
Posts: 16795
Joined: Fri Dec 26, 2008 10:25 pm

Re: File and suspend

Post by ResearchMed »

IIUC, Wife could also file and suspend at FRA.

That doesn't provide any $, but it does allow for her to recover all benefits back to the start at FRA, on the off chance there is a dramatic change in health (or dramatic need for money).
Otherwise, only a few months of back benefits can be recovered.

RM
User avatar
Topic Author
coachz
Posts: 1048
Joined: Wed Apr 04, 2007 7:10 am
Location: Charleston, SC

Re: File and suspend

Post by coachz »

Very interesting. Since our PIAs are so close, am I allowed to collect spousal benefits?
User avatar
Chin00k
Posts: 54
Joined: Fri Jan 24, 2014 7:06 pm

Re: File and suspend

Post by Chin00k »

LeeMKE wrote:http://individual.troweprice.com/public ... 20Security

We are even closer in income and age, and this calculator was excellent help.
Harrumph... this is what the calculator gave me:

Code: Select all

At this point in time, the Social Security Benefits Evaluator is not able to offer suggestions for couples with more than a six year difference in age. Please know that we are currently working to expand the tool's capabilities. Please check back regularly.
User avatar
Topic Author
coachz
Posts: 1048
Joined: Wed Apr 04, 2007 7:10 am
Location: Charleston, SC

Re: File and suspend

Post by coachz »

Are there income limits on who can get spousal benefits ? If husband and wife both make about the same money (say $80k), can one file and suspend and can the other draw spousal benefits ?
User avatar
ThePrune
Posts: 960
Joined: Wed Nov 10, 2010 8:38 am
Location: Midland, MI

Re: File and suspend

Post by ThePrune »

coachz wrote:Are there income limits on who can get spousal benefits ?
Income Limits? I could simply answer your question, NO, but its also useful to cite material from the Social Security Administration to back up my answer.
Social Security Handbook wrote:320.1 What is your spouse's insurance benefit amount?
As a spouse, your insurance benefit is one-half of the worker's primary insurance amount (see §302).

The benefit paid to you may be less than one-half of the worker's primary insurance amount if:
A. The “family maximum” applies (see §§731-732 for an explanation of reduction in benefit rates because of this provision);
B. You are entitled to a retirement, disability, or widow(er)'s insurance benefit that is smaller than your spouse's benefit rate (only the difference between the retirement, disability, or widow(er)'s benefit and the spouse's benefit rate is paid as a spouse's insurance benefit); or
C. You qualified for a reduced spouse's benefit before retirement age. (See §§723-724 for an explanation of how the reduced rate is figured.)
Note: If you have in care the worker's child under age 16 or disabled, who is entitled to child's insurance benefits, your benefits are not reduced. (See §312 for an explanation of “in care”.)
As the above quote shows, the income level of either spouse is NOT listed as a potential cause of a reduction in spousal benefits. The "family maximum" in A above refers to SS benefits, not working earned income.
coachz wrote:If husband and wife both make about the same money (say $80k), can one file and suspend and can the other draw spousal benefits ?
I think you have already demonstrated knowledge from past postings in this thread that the spouse attempting to "file and suspend" needs to be at least Full Retirement Age (FRA). The other spouse needs to be at least Full Retirement Age (FRA) in order to file a restricted application for only spousal benefits.
Investment skill is often just luck in sheep's clothing.
User avatar
Topic Author
coachz
Posts: 1048
Joined: Wed Apr 04, 2007 7:10 am
Location: Charleston, SC

Re: File and suspend

Post by coachz »

Great tips, thank you so much. You guys are really the best ! :beer
steve_14
Posts: 1507
Joined: Wed Jun 20, 2012 12:05 am

Re: File and suspend

Post by steve_14 »

coachz wrote:For the situation where the wife is 4 years older than the husband and wife's salary is $75k and husbands is $85k, what would be the best strategy?
Wife files at 70, you take spousal between 66 and 70, then your own after. Note that the T. Rowe Price calculator is known to be buggy, see for example: http://www.bogleheads.org/forum/viewtop ... 2&t=138945
Post Reply