So help me out here..
If I try to retire early and draw SS...but find out it isn’t feasible...suspend benefits and go back to work...I’ll be penalized in some way??
Yup. If you aren’t a corporate titan, you’re screwed out of what you worked for all your life.
People in Washington think we’re cheating them when in reality, they’re cheating us.
And they have the chutzpah to lecture us about gaming the system!
No. Currently, a SS-eligible worker can file for benefits, then suspend those benefits so that they grow until the worker decides to claim them at a later time when he is older and the check will be bigger.
During that “suspension” time, the worker’s spouse can collect on his earnings, even though it is suspended.
This legislation would close that loophole, so that neither retired workers nor their spouses are allowed to draw benefits from a suspended account.
I had it explained to me by the social security rep at the court house. This option is still open to us due to our age.
I am drawing SS. My wife is 63, at age 66 she can apply for SS, then suspend it and draw off of mine which is $500 per mo more than what hers would have been. When she turns 70, she stops drawing from mine and starts drawing hers. During this 4 year period her account grows to more than what she was drawing off of mine by about $300 per mo. Her take home pay effectually doubles.
This sounds convoluted, but this is what I read off the SS website, and exactly how the SS rep explained it to me.
Since she is 63 years of age in 2015, this “loophole” is still open to her. In other words, she can still do it. This change in the law applies to “The amendments made by this subsection shall apply with respect to individuals who attain age 62 in any calendar year after 2015.” as quoted from HR1314