The Bipartisan Budget Act of 2015 makes significant changes to Social Security planning.┬áThere are many articles that go into the details of the changes (this article from Michael Kitces for example), but the legislation most affects ‘restricted application’ and ‘file and suspend’ filing.

There are millions of Americans over the age of 62 who have not yet filed for Social Security benefits who can still take advantage of restricted applications. Those who will be age 66 by April 30th can still use file-and-suspend. And, anyone thinking of filing for benefits must consider when to file.

The changes for restricted applications apply to those who attain age 62 in any calendar year after 2015. Your clients who are at least 62 years of age by the end of 2015, will still be able to utilize a restricted application.

‘File and suspend’ however, is another story. The new legislation eliminates the most common application of the ‘file and suspend’ strategy unless your clients can take advantage of it within the next 180 days (the exact date for the expiration of the ‘file and suspend’ strategy is not yet available, but will be after April 30th 2016).

From a Congress that has been stalemated for years, this legislation came out of the blue and passed with unbelievable speed. We know the urgency you have to get proposals in your client’s hands that reflect these changes. Impact plans to have its software modified and deployed on Wednesday November 4th.

Posted November 3, 2015 filed under Announcement, Articles.