Ask Larry

Should I Claim My Spouse's Benefit Now?

My husband just turned 66 and did file and suspend before April 29. I turned 65 June 1 and wonder if I should claim half his benefits now or wait till I am 66. His monthly is around $2,000/ mo and my benefit at full retirement age is $900/mo. Should I claim his benefits now or wait until 66? Do I pay income taxes on his benefit?

Polla,
If you file for your spouse's benefit before your full retirement age (FRA), then you will be deemed by law to have filed for both your retirement and spouse's benefit at that time. This means that you would receive a reduced retirement benefit plus your excess spouse's benefit of around $100. Your best strategy probably is to wait until your FRA to file a restricted application for spouse's benefits only and delay your retirement benefit until age 70, to increase it by 32%. Our software, MaximizeMySocialSecurity, can determine the filing strategy that works best for you.
Yes, you pay income tax on your Social Security income.
Best,
Mike

Posted: 
Jul 1 2016 - 2:15pm
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