(Reuters) – Are high-income Americans gaming Social Security? The Obama administration wants to go after the wealthy for “aggressive” moves to “manipulate” their Social Security claiming decisions, according to the fiscal 2015 budget released by the White House earlier this month.
The administration hasn’t offered much elaboration, but a White House official, speaking on background, confirmed to me that the target is a benefit claiming strategy known as file-and-suspend – a twist on the more straightforward strategy of delayed filing to earn a higher monthly benefit down the road. Although it’s technically available to anyone, the White House thinks the strategy is being used to unfair advantage by high-income seniors and wants to shut it down because of the added benefit cost it imposes on the Social Security program.
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