Immigrate to the U.S. for practical information on life in the U.S..The Worldway Group's Los Angeles office has recently learned that the "2015 Bipartisan Budget Act," passed on October 28 last year, will take effect on the 29th of this month, and the options for Social Security benefits available to married couples in the U.S. will be restricted. These changes are referred to as the most significant adjustments to the Social Security system in the U.S. since 1983.
After the new regulations take effect, it is expected to change the benefit application decisions for millions of Americans, as applicants under the age of 66 will not be able to enjoy spousal benefits even if they voluntarily delay receiving retirement benefits, and cannot apply for benefits for other family members. At the same time, the new regulations will not allow those who choose to delay receiving retirement benefits to take a lump sum of their accumulated retirement funds. Therefore, experts recommend that affected individuals plan ahead.
1. What does "deemed filing" mean?
Based on the abolition of "file and suspend" and "restricted application," the new regulations introduce "deemed filing." It stipulates that when either spouse applies for spousal retirement benefits, it is considered as applying for their own retirement benefits, and the Social Security Administration will compare the benefits of both and only pay the higher amount. Currently, the new regulations only apply to those under 66 years old, and those who have not yet applied for Social Security but will reach full retirement age by the end of April next year are still exempt.
2. Exemption rules for those aged 66, 62, and widows/widowers
First, those who are over 66 years old in 2015 and apply under "file and suspend" can continue to receive spousal or dependent benefits after the law takes effect on April 29, 2016, and can also enjoy delaying their own retirement benefits for up to 4 years until they reach 70 years old.
Second, those who turn 62 by the end of 2015 are exempt from the new "deemed filing" regulations. In other words, those who applied under "file and suspend" before the end of 2015, if their spouse is also 62 or older by the end of 2015, will continue to be subject to the current "restricted application" regulations, allowing them to first receive spousal retirement benefits and then delay receiving their own retirement benefits.
Third, the newly added "deemed filing" regulations do not apply to widows or widowers, who can still choose to receive survivor benefits first and delay receiving retirement benefits.
Additionally, those who have applied to delay receiving retirement benefits before the end of April this year can cancel the delay at any time and receive a lump sum of their accumulated retirement funds; or they can choose to not cancel the delay but opt to receive a lump sum of retirement funds, with a maximum retroactive period of four years.
3. Expert Advice
For couples who are both working and eligible to receive Social Security, they have two options when applying for Social Security benefits: one is to apply for their own Social Security retirement benefits, and the other is to receive half of the spousal benefits based on the spouse's income. Senior accountant Shi Qixiang stated, "You should compare whether your own retirement benefit amount is greater or the 50% amount of the higher-earning spouse's retirement benefit is greater."
Accountant Li Xinzong also stated that although the restricted application has been abolished by the new law, couples who were over 62 by the end of 2015 can still utilize this strategy to achieve the goal of receiving more Social Security benefits when they reach full retirement age. Since the calculation of Social Security benefits involves points, age, and salary, experts recommend that those considering retirement seek professional advice for proper tax planning.
As a leading institution in the investment immigration industry, the Worldway Group has been dedicated to selecting high-quality projects for high-end clients for 19 years. Worldway also has a comprehensive customer service team for settling down. Currently, Worldway has established a customer service center in Los Angeles. If you have any needs regarding EB-5 investment immigration, settling down in the U.S., resolving life issues in the U.S., tax planning, children's education, asset allocation, investment management, insurance finance, etc., you can contact the customer service center (001-626-522-6522).
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