Government Spells Out New Social Security Rules
The clock is ticking down on two popular claiming strategies. If you still qualify, you may need to act fast.
![Social Security Cards](https://cdn.mos.cms.futurecdn.net/PEWY7R4FUbnCiUT6gLb97b-415-80.jpg)
Boomers who are in their sixties, tune in: The Social Security Administration has finally issued official guidance on the phaseout of two popular claiming strategies, and if you qualify, you need to act quickly.
The agency also issued guidance on the other claiming strategy that is phasing out. The agency confirms that those who were born on January 1, 1954, or earlier still qualify to use the “restricted application” strategy. This strategy allows an eligible beneficiary who is full retirement age to apply for a spousal benefit only, while allowing his own benefit to earn delayed credits.
Also, a spouse born on January 1, 1954, or earlier who takes her own benefit early but becomes eligible for a spousal benefit once her spouse has applied for his benefits won't automatically have to claim the spousal benefit if it's higher. She could choose to wait to bump up to the higher spousal benefit once she turns full retirement age. (Under the rule changes, those born after January 1, 1954, are automatically given the higher of their own or their spousal benefit, once they are eligible for both benefits.)
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But beware if you are eligible for both strategies: Make sure you don't want to use the restricted application strategy before filing and suspending, because you can't do both. Run your numbers and see which strategy will pay out more before making any move.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Visa Is the Worst Dow Stock Wednesday. Here's Why
Visa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
By Joey Solitro Published
-
Another Analyst Moves to the Sidelines on Tesla Stock After Earnings
Tesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
By Joey Solitro Published
-
Medicare Basics: 11 Things You Need to Know
Medicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
By Catherine Siskos Last updated
-
Six of the Worst Assets to Inherit
inheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
By David Rodeck Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
SEP IRA Contribution Limits for 2024
SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 a year.
By Jackie Stewart Last updated
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Last updated
-
SIMPLE IRA Contribution Limits for 2024
simple IRA The SIMPLE IRA contribution limit increased by $500 for 2024 and workers at small businesses can contribute up to $16,000 or $19,500 if 50 or over.
By Jackie Stewart Last updated
-
457 Contribution Limits for 2024
retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
By Jackie Stewart Published
-
Roth 401(k) Contribution Limits for 2024
retirement plans The Roth 401(k) contribution limit for 2024 is increasing, and workers who are 50 and older can save even more.
By Jackie Stewart Last updated