If you’re planning for retirement, you should be aware of Congress’ recently enacted budget deal. Why? Because it eliminates a popular Social Security claiming strategy known as “file and suspend.”
File and suspend is essentially a way for married couples to squeeze the maximum amount of benefit dollars from Social Security over their lifetimes. In some cases, file and suspend is projected to add hundreds of thousands of dollars to a couple’s lifetime retirement income.
Before we go any further, it’s important to clarify that couples who already have the file-and-suspend strategy in place will not be affected by the new legislation. In fact, there is still a six-month window for couples who meet certain age requirements to use file and suspend before the law’s provisions take effect.