Social Security benefit-claiming strategies changed
significantly with the new budget bill signed into law by President Obama on
November 2, 2015. Two frequently used
strategies, Restricted Application for
Spousal Benefits and File and Suspend,
are now forbidden; however, dentists who have reached the full retirement
age of 66 or older and have been using these strategies are grandfathered in so
that no change in how and when benefits are claimed under these two strategies is
mandated.
Changes in claiming strategies for dentists who were 62 or
older by December 31, 2015 are extensive and complicated. I highly recommend that every dentist
approaching retirement years confer with his/her financial advisor to plan the
best method and timing for himself or herself and spouse to claim Social
Security benefits. Remember that
benefits received while the dentist is still practicing will be taxed at a
higher rate than benefits received after retirement. Proper consideration of how and when a
dentist and spouse tap into Social Security benefits may make a difference of
thousands of dollars in retirement income.
Contact your financial advisor today to determine the wisest strategy
for claiming Social Security which is, after all, your money simply collected
and held by the government, not a welfare program.
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