Ask Larry

Larry,

My wife is 62 and I am 58. We are both retired and receive pension income. My wife generates ~$10,000/year from some consulting work (self-employed). To supplement our income, we are also taking distributions from a taxable investment account. Our SS claiming strategy had been for her to begin claiming at 62 and for me to wait until I am 70 (her PIA at FRA is $2,207 and my PIA at FRA is $2,809). Because we are trying to stay under the 0% capital gains tax rate threshold for the next year or two, my wife has held off on taking her SS.

Once she does start claiming SS and reaches FRA (66 & 10 month), would it make sense for me to file a restricted application and claim spousal benefits on her account until I reach 70, or by doing so do I undermine my ability to collect delayed retirement credits.

Thanks much.

David

Hi David. You won't have the option of filing a restricted application for spousal benefits. The 2015 Social Security amendments changed the law to preclude people who were born after January 1 1954 from being able to file a restricted application for spousal benefits (https://www.ssa.gov/benefits/retirement/planner/claiming.html).

Whenever you apply for either your own benefits or for spousal benefits, you'll be deemed to be filing for both benefits. As a result, there's no way that you could collect spousal benefits while allowing your own benefit rate to continue to grow until age 70.

Best, Jerry