Friday, April 29, 2016
The file and suspend strategy that spouses use with Social Security was done away with in the Bipartisan Budget Act of 2015. Today is the last day that file and suspend will be available as an option. “This option allows filers to apply for their benefits and then immediately suspend them and allow them to grow into a larger benefit in the future and collect spousal or other family benefits in the meantime.” Those who have been caught unprepared and failed to use the file and suspend strategy by today’s April 29 deadline may still be able to use a Form 795 to buy an extra six months to get the actual filing done. In order to qualify the person should be at least 66 years old and must file the Protective Filing Statement using Form 795 by today.
See Mark P. Cussen, Late to File and Suspend? File Form 795 for an Extension, Investopedia, April 28, 2016.