Lawmakers end Social Security loophole

Discussion in 'UPS Retirement Topics' started by Ms.PacMan, Oct 29, 2015.

  1. Ms.PacMan

    Ms.PacMan Well-Known Member

    https://www.kitces.com/blog/congres...untary-suspension-social-security-strategies/

    This does not effect me but I want to post the info.

    In a nutshell - the loophole allows retired spouses to collect a third marital social security benefit while allowing their individual social security benefits to continue to grow until age 70.
    (Husband reaches FRA - full retirement age, 66 and files for SS but suspends the payments thereby allowing his SS to continue to grow at 8%/yr until 70. This allows the wife to file and collect spousal benefits, 50% of his benefit at FRA, while continuing to let her own SS grow 8% until age 70.) I think this might also be possible at age 62 with a spousal benefit of 30%?

    The bill to close this loophole will give anyone who is eligible before the end of 2015, six months to take advantage of the file and suspend strategy.
     
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  2. olroadbeech

    olroadbeech Happy Verified UPSer

    nice. meanwhile congress will vote themselves a raise.
     
  3. Ms.PacMan

    Ms.PacMan Well-Known Member

    This was their work around to fund SSDI which runs out of money in 2016. The money saved from closing the loophole will fund disability recipients until 2022.
     
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  4. Ms.PacMan

    Ms.PacMan Well-Known Member

    I do think that anyone who's eligible should take advantage of it while they still can.
     
  5. rod

    rod retired and happy


    Ok--I will ask again? How come there is NEVER any talk about welfare running out of money? Its always Social Security or Medicare or some program that WE have paid for with years of work. They never talk about cutting back the programs geared toward the lazy bastards who don't work.
     
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  6. Jones

    Jones fILE A GRIEVE! Staff Member

    If they want to close a social security loophole they should lift the cap. That would fund disability recipients for a lot longer than 2022 in fact it would pretty much solve all SS's funding issues for the foreseeable future.
     
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  7. bbsam

    bbsam Moderator Staff Member

    Now you're just taxing the rich. Liberal bastard.
     
  8. rod

    rod retired and happy

    When I applied for Social Security there were probably 15 different people in the waiting area. I was the only one not trying to sign up for Social Security Disability payments. I'm sure a "few" might have been legit but from what I saw they were for the most part just a-holes trying to get some more free money. And why pray tell does every SS office need an armed guard present at all times. When you finally get to talk to someone its through a bullet proof glass window. Its much easier to sign up on line.
     
  9. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    This should of been done unless you'd prefer ss just go bankrupt.


    Same for pensions.
     
  10. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    My wife maxes out SS now and I got curious about seeing how much the max figure had went up over the years.


    It's doubled in the last 20 years. That is crazy!!!!
     
  11. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    I pick up at 1. The armed guard is probably 75. Total joke. Lol
     
  12. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I deliver and pickup from out local office. They have 5 guards. I am escorted wherever I go while there.
     
  13. PT Stewie

    PT Stewie "Big Fella"

    I was counting on file and suspend . Now I have to reset and do some more figuring. Congress sucks.
     
  14. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    I see why they didn't based on the original premise of SS but I agree, the cap on Soc Sec Taxed income should be removed ... especially since I don't work anymore.
     
  15. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Aren't we all?

    I like free money whether from the US government, Teamsters or UPS.
    Hell, I'll even take gifts from you.
     
  16. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    I had planned to do this but we are about 3 years too late.
     
  17. PT Stewie

    PT Stewie "Big Fella"

    Just a vent . After leaving UPS ( having our second child) Mrs. Stewie was a stay at home mom and raised 3 currently employed hard working tax payers not freeloaders . Mean while pop has worked 2 jobs these last 18 years paying the mortgage ,taxes ,and college tuition. With the 401K (started late) PT pension ,and social security a modest but almost comfortable retirement was within a 5 year grasp. Then in a back door Washington meeting the file and suspend option was taken away. Look for the old fart schlepping boxes until he is 70 . WTF.
     
  18. Ms.PacMan

    Ms.PacMan Well-Known Member

    Rats!

    As a single person I had planned on doing the file and suspend just to have a lump sum if I had needed it but they've done away with that to.
     
  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I may be wrong but file and suspend is not an option for single people.
     
  20. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    I may be crazy
    But it just may be a lunatic you're looking for!