When my full retirement comes in July of 2012, can I file and suspend and then have him file for spousal benefits on my account?

If we can do this, we will collect about 1/2 of our “regular” benefits until we reach, when we will file for full delayed benefits on our own accounts.

This is generally done by notation in the “remarks” section of the Social Security application; however I’ve been told that Form 521 is being modified to permit this. Once done, you can draw dependent benefits if you are (a) age 62 or over and (b) the amount of your benefits based on your work record are not greater – before NRA you must take the greater of the two. Your dependent daughter should also be eligible for dependent benefit after the suspension. Your minor daughter can only be a dependent of a primary SS recipient and she should be able to change at any time to take advantage of higher benefits. In order words she cannot be your dependent if you are your husband’s dependent.

Good luck in getting the Social Security Administration to acknowledge all of this – for the record their headquarters in Baltimore generally gives the right answers.

Shelby

1) Does the “file and withdraw” strategy, as outlined recently in Kiplinger’s and elsewhere, apply to dependent children? My husband, now 64, plans to retire at age 70. However, he would like to file for SS benefits at age 66 and then immediately withdraw his application so that our daughter, who will be 16 at the time, can receive benefits on his record. Do SS regulations allow this?

1) A related question: I am 3 1/2 years younger than my husband (I am almost 61). If I take SS benefits on my record when I turn 62, can my daughter collect on my record and then collect on my husband’s record (which would give her a higher benefit) when he turns 66 (and pursues the “file and withdraw” strategy?

I spoke with a SS rep by phone about these issues, but, alas, he was unfamiliar with “file and withdraw” under any circumstances.

Thank you.

Kathleen

The rule for Social Security benefits says that if you are below normal retirement age and still working, you will lose $1 in benefits for every $2 you make over $14,160 annually. The loss goes to $1 in every $3 earned during the year you reach normal retirement age, and the threshold amount is higher than $14,160. If your wife was born between 1943-54, her normal retirement age is 66. Once she reaches this age, there is no penalty for working.

Since your wife is younger than you, it might have made sense for you to postpone your Social Security benefits until age 70 (if you can afford) because if you expire first (and the mortality table say you will) she will qualify for the higher of what she was getting or what you were receiving. Since your benefits will grow at about 8% annually for each year postponed until age 70, this could mean a big difference for her.

There are numerous circumstances that need to be considered … but if it makes sense, you can repay the Social Security Administration all the money you’ve received as benefits (without paying any interest) and then postpone until a later age. If you wife stop working, she will be eligible for the greater of (a) what you get or (b) what she qualifies from her own work record.

By the way, if your wife were not working she would qualify for benefits on her own work record or as your dependent. I also wrote a publication called “The Guide to Social Security & a Better Retirement “ that you can read! Hope this helps.

It is my understanding that we are eligible for her to get her spousal
benefit. We applied yesterday and they called us back today and said
she didn’t qualify because she was making over $14,160.

Please advise.