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The Bipartisan Budget Act of 2015 signed into law by President Obama will dramatically impact two claiming strategies.

To understand the impact of this new law on your situation click on the link Maximize My Social Security.

Widow

Widow’s options were not impacted at all.

Single

The impact on planning for singles is very simple. Individuals born on or before May 1, 1950, for whom the optimal strategy would delay benefits past Full Retirement Age (FRA), should file and suspend as soon as eligible — either immediately or upon reaching FRA. The suspension must be received by April 30 in order to fall under the old rules. Suspending benefits under the old rules should preserve the option to request a retroactive lump-sum payment should the individual’s circumstances change while benefits are suspended.

Married

The impact on planning for couples is nuanced. There are now three sets of rules:

  1. People born on or before May 1, 1950, (turning 66 for Social Security purposes in April 2016) — have access to both Voluntary Suspension that allows auxiliaries to claim as long as the request for Voluntary Suspension occurs on or before April 30, 2016, and Restricted Application.
  2. People born on or after May 2, 1950, but before Jan. 2, 1954 — Voluntary Suspension also suspends benefits of other auxiliaries, including spouses and children, and an individual whose benefit is in suspense can’t receive spousal excess. This group still has access to the Restricted Application.
  3. People born on or after Jan. 2, 1954 — Voluntary Suspension also suspends benefits of spouse and children, and an individual whose retirement benefit is in suspense can’t receive spousal excess. This group no longer has the option to file a restricted application for spousal benefits.

Divorced

The impact on divorced cases is very similar to married. The important timelines are those born on or before Jan. 1, 1954, who still have access to the Restricted Application and those born after, who do not.