SOCIAL SECURITY – THE FILE AND SUSPEND STRATEGY
File and suspend is the short hand name for a feature of social security benefits that became available in the year 2000 for taxpayers who are of full retirement age. Essentially, it involves one spouse filing for social security benefits and immediately suspending those benefits.
Doing this makes Spousal Benefits available to the other spouse. This benefit provides a monthly payment to the other spouse that is one-half the amount that would be available to the suspending spouse.
The reason for doing this; by both spouses waiting to file for his/her own benefits, those benefits continue to increase annually at 8% until benefits maximize at age 70 or until either spouse decides it is time to file for his/her own benefits.
More information on this strategy can be found at:
http://www.socialsecurity.gov/planners/retire/suspend.html
Other links for additional information:
http://www.socialsecurityownersmanual.com/bulletin-106-20/
http://financialducksinarow.com/2174/the-spousal-benefit-option-for-social-security-benefits/
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