I’m receiving about $1,200 a month in Social Security spousal benefits under a "file and suspend" strategy based on my husband's employment record. I see Congress is about to eliminate the right to do this. Will they make me pay back the money I've received? I've already spent it.
Don't worry. Although the budget deal working its way through Congress would end the "file and suspend" strategy, there’s no provision for making folks who've taken advantage of this entirely legal tactic pay back the benefits. In fact, a last-minute amendment to the bill leaves the file-and-suspend window open for six months. Assuming the budget bill passes and is signed by President Obama, here's how the new rule will work: Six months after the law is enacted, the file-and-suspend strategy will disappear. For folks who apply after that time (probably around May 1, 2016), the Social Security Administration will no longer pay spousal benefits based on the record of a husband or wife who suspends his or her own benefit in order to earn delayed-retirement credits. Since you're already receiving benefits, you’re grandfathered in. The money will keep flowing.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
-
How to Add Your Driver’s License or State ID to Google WalletStore and use your digital ID securely on your Android device for TSA, age verification and more.
-
I Retired at 60 Two Years Ago With $3.1 Million. My 62-Year-Old Wife Still Works Because She Wants to, but She Resents My Free Time. Help!We asked a psychologist and a mediation expert for advice.
-
Getting Out of an RMD Penaltyretirement When your brokerage firm miscalculates your required minimum distributions, you have recourse.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
It’s Not Too Late to Boost Retirement Savings for 2018
retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
-
How to Correct a Mistake on Your RMDs from IRAsretirement If you didn't take out the correct required minimum distribution because your brokerage firm made a mistake, the IRS may show some leniency.
-
Making the Most of a Health Savings Account Once You Turn Age 65
Making Your Money Last You’ll face a stiff penalty and taxes if you tap your health savings account for non-medical expenses before the age of 65. After that, the rules change.
-
Reporting Charitable IRA Distributions on Tax Returns Can Be Confusing
IRAs Taxpayers need to be careful when reporting charitable gifts from their IRA on their tax returns, or they may end up overpaying Uncle Sam.
-
Make the Most of the New Military Retirement Plan
retirement The government is offering a new retirement option so that service members who leave the military before qualifying for a pension can still receive some benefits.
-
How Changes in Income Affect Medicare Premiums
Medicare Medicare beneficiaries can see their premiums go up if their income rises, although for some that increase will be only temporary.
