There is no longer a Social Security spousal benefits loophole for workers at full retirement age who voluntarily suspend their benefits but allow a spouse to claim benefits on their record.
There used to be a “file and suspend” loophole meant to help married couples maximize their Social Security benefits. However, after Congress passed the Bipartisan Budget Act in 2015, this loophole no longer applies.
'File and suspend' loophole
How the spousal benefits loophole worked
Your Social Security retirement benefits increase by a percentage for every month you delay starting your benefits past age 62 and until age 70.
The “file and suspend” tactic allowed a worker to apply for retirement benefits at full retirement age or older, then voluntarily suspend their actual payments.
Even though they themselves would not receive benefits, their spouse would receive a spousal benefit.
At age 70, they could begin receiving benefits and take advantage of the percentage increase.
How spousal benefits work now
You can still delay your benefit payment at full retirement age in order to earn a monthly percentage increase, but other payable benefits on your record, including spousal and family benefits, are also suspended.
You aren't able to receive spousal benefits or other benefits on another person’s record when yours are suspended.
Divorce is an exception to the rule
Now that the old loophole doesn’t work, what are my options?
Here are some ways to maximize your Social Security benefits without the loophole:
Wait to retire. Wait until at least retirement age, typically 65 or older, depending on what year you were born. While you can retire as early as age 62, the Social Security Administration reduces your maximum benefits if you claim before your full retirement age and increases your benefits until age 70.
Spousal benefits. You can still take advantage of spousal benefits and receive an amount of up to 50% of your partner’s benefit, depending on when they retire. Plus, if you qualify for your own record but their benefit amount is higher, you will get an additional amount so the combination equals your spouse’s benefits.
Divorced spousal benefits. You can still receive benefits on your ex-spouse’s record if your marriage lasted at least 10 years and your ex-spouse is at least 62 years old, unmarried, entitled to receive more than you are from Social Security and qualified for retirement or disability benefits.
Dependent benefits. Your biological child, stepchild, adopted child or dependent grandchild can also qualify for Social Security benefits. To qualify, they must be unmarried. They must also be under age 18 unless they're 18 or 19 and a full-time high school student or have a disability that started before age 22. Benefits paid to your child do not decrease your retirement benefit.
Survivor benefits. Surviving spouses can apply to receive reduced benefits as early as age 60 and then switch to their own benefits at age 62 if they qualify on their own accord.
Frequently asked questions
When should I start my benefits?
When you choose to start your benefits can have an impact on your benefit amount. If you start your benefits when you reach retirement age, you’ll receive a lower benefit but receive payments for longer. If you delay your benefits, you'll increase your benefit amount but receive payments for a shorter period of time.
Is there a limit to the benefits my family can receive each month?
Yes, there's a maximum family amount that your family can receive each month. The amount varies but is generally between 150% and 180% of the standard benefit rate.
Can I work while receiving Social Security retirement benefits?
You can work while receiving Social Security benefits. However, if you're younger than full retirement age and making more than the earnings limit, you may see your benefits reduced.
FAQs
Accessed Aug 1, 2023. There used to be a “file and suspend” loophole meant to help married couples maximize their Social Security benefits. However, after Congress passed the Bipartisan Budget Act in 2015, this loophole no longer applies.
What is the Social Security spousal support loophole? ›
The first exception, which can be deemed as the Social Security spousal benefits loophole, works where an individual who remarries at 60 or later may still be entitled to Social Security survivors' benefits if the second marriage ends before the death of the first spouse.
What is the Social Security spousal benefit loophole for 2024? ›
A Social Security spousal rule that has been around for decades officially ends this year for everyone except those who turned 70 on Jan. 1, 2024. The rule allows recipients to switch between their benefits and their spouses to receive the maximum amount. But unless you were born before Jan.
Why isn't my wife's spousal benefit 50% of my Social Security retirement benefit? ›
Can I Collect Half of My Spouse's Social Security at Age 62? Not quite. The percentage of your spouse's full retirement benefit that you receive could be as little as 32.5% at age 62. It steps up gradually to 50% as you near your full retirement age, which is 65, 66, or 67, depending on your birth year.
What is the spousal benefit rule for Social Security? ›
The spousal benefit can be as much as half of the worker's "primary insurance amount," depending on the spouse's age at retirement. If the spouse begins receiving benefits before "normal (or full) retirement age," the spouse will receive a reduced benefit.
How can a wife get half of her husband's Social Security? ›
Once you turn 62, you typically qualify for a spouse's Social Security benefit. The spouse's Social Security benefit amount is up to one-half the amount that the wage-earning spouse is eligible to receive at full retirement age.
Can my wife take Social Security at 62 and then switch to spousal benefit? ›
If your spouse is not receiving any retirement benefits yet, then you could technically take your regular Social Security benefit as early as age 62. When your spouse files for their benefit later you could switch to spousal benefits.
What percentage of a husband's Social Security does a wife get? ›
Social Security Program Rules
The wife of a retired worker is eligible for a spousal benefit of up to 50 percent of her husband's primary insurance amount ( PIA ), if claimed at her full retirement age ( FRA ).
What is the best Social Security strategy for married couples? ›
In this common situation, the optimum strategy is often to have the husband begin his Social Security benefits at age 70, with the wife starting her Social Security benefits at her full retirement age, or even earlier.
Does Social Security automatically apply spousal benefits? ›
If your spouse qualifies for benefits on their own record, we will pay that amount first. If the benefit on your record is higher, they will get an additional amount on your record so that the combination of benefits equals that higher amount.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Can I collect spousal benefits and wait until I am 67 to collect my own Social Security? ›
You are eligible for benefits both as a retired worker and as a spouse (or divorced spouse) in the first month you want your benefits to begin and. You are not yet full retirement age, you must apply for both benefits (known as deemed filing).
How can I maximize my spousal Social Security benefits? ›
Either spouse can maximize their regular Social Security benefit amount by waiting past their full-retirement age to apply, up to age 70. Benefits generally increase 8% each year filing is delayed.
Can my husband's ex wife take his Social Security? ›
If you are divorced, your ex-spouse can receive benefits based on your record (even if you have remarried) if: Your marriage lasted 10 years or longer.
When a husband dies, does the wife get his Social Security disability? ›
Surviving spouse, full retirement age or older — 100% of the deceased worker's benefit amount. Surviving spouse, age 60 — through full retirement age — 71½ to 99% of the deceased worker's basic amount. Surviving spouse with a disability aged 50 through 59 — 71½%.
What is a SS loophole? ›
The Restricted Application Loophole
One Social Security loophole allowed married individuals to begin receiving a spousal benefit at full retirement age, while letting their own retirement benefit grow. This was done by filing what is called a restricted application.
How much Social Security does a divorced spouse get? ›
How much Social Security does a divorced spouse get? A divorced spouse can receive up to 50% of their ex-spouse's full retirement benefit. You must wait until you reach full retirement age if you want to claim your full benefit. For most people, full retirement age for Social Security is between 66 and 67.
