Lawmakers end Social Security loophole

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.
 

rod

Retired 22 years
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.


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.
 

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.
 

bbsam

Moderator
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.
Now you're just taxing the rich. Liberal bastard.
 

rod

Retired 22 years
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.
 

Brownslave688

You want a toe? I can get you a toe.
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.
I pick up at 1. The armed guard is probably 75. Total joke. Lol
 

Catatonic

Nine Lives
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.
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.
 

Catatonic

Nine Lives
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.

Aren't we all?

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

Catatonic

Nine Lives
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.
I had planned to do this but we are about 3 years too late.
 

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.
 
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