Q & A
Can both spouses claim spousal benefits of each other’s account? In a case where both spouses are at FRA, and have filed, can the husband file for spousal benefits from the wife? Can the wife file for spousal benefits from the husband’s account? What would be the effect on the husbands’ filing for benefits if he has WEP being applied from a job that did not pay into Social Security yet has 27 years of earnings on file with Social Security.
Answer: Sorry SH. No. Both of you cannot get spousal benefits off each other’s records at the same time. The Windfall Elimination Provision (WEP) applies to pensions from employers that do not withhold for Social Security taxes such as governmental agencies or employers in other countries. The effect of the WEP is to reduce your Social Security benefit by an amount based on a number of variables including the number of years you had substantial earnings. A record of 27 years typically means a small reduction. There is no reduction after 30 years. The Social Security Administrationhas a chart and a calculator that can help you assess the potential reduction. You can see it here.
Source: MarketWatch.com – January 3, 2014
My husband, 68.5 yrs, wants to wait until 70 to draw his full ss benefit. I am going to be 66 soon and want to wait until 70 to draw my full ss benefit, as well. I read that only one spouse can take the spousal benefit, but am not clear about whether or not this rule means that my husband and I can draw spousal benefits sequentially. In other words, can my husband take the spousal benefit (upon my reaching FRA and when I file and suspend) and then switch to claim his own benefit at 70 , allowing me to claim the spousal benefit after this and until I claim my full ss at 70?
Hello kmh,
File and suspend is a very useful strategy. The “rule” that says you cannot both take spousal benefits means that you cannot take them at the same time. Therefore, your husband can file and suspend so that you can draw spousal benefits while he earns delayed retirement credits until age 70. There is also a little known strategy called “restricted application”. If your husband wants his spousal benefits based on your record, he can file a restricted application which will give him only spousal benefits while he continues to earn delayed retirement credits. Both of these strategies not only maximize your benefits, but they also maximize your surviving spouse benefits for both of you when one of you may need them. Keep in mind that both strategies require the beneficiary to be full retirement age.