What are the new rules for deemed filing resulting from the Bipartisan Budget Act of 2015?
Deemed filing means that when you file for either your retirement or your spouse’s benefit, you are required or “deemed” to file for the other benefit as well. Deemed filing rules already apply when you file for either your retirement or your spouse’s benefit and you are before full retirement age. The Bipartisan Budget Act extends deemed filing rules to apply at full retirement age (FRA) and beyond.
What is the effective date for the new rules on deemed filing resulting from the Bipartisan Budget Act?
The new rules for deemed filing are effective immediately for individuals who turn 62 on or after January 2, 2016. An individual born on January 2, 1954 will reach his or her full retirement age (66) in 2020. Therefore, January 2020 is the first month deemed filing will apply to someone who reaches full retirement age. Until that time, deemed filing will only apply to those below full retirement age.
I turned 62 before January 02, 2016. Does the new law on deemed filing under the Bipartisan Budget Act affect me?
No, if you turned 62 prior to January 2, 2016, the new law that extends deemed filing rules to benefits at full retirement age and beyond will not apply to you.
Can I restrict my application for benefits and apply only for spouse’s benefits and delay filing for my own retirement benefit in order to earn delayed retirement credits?
If you turn 62 before January 2, 2016, deemed filing rules will not apply if you file at full retirement age or later. This means that you may file for either your spouse’s benefit or your retirement benefit without being required or “deemed” to file for the other. In your case, you may also restrict your application to apply only for spouse’s benefits and delay filing for your own retirement in order to earn delayed retirement credits. However, if you turn age 62 on or after January 2, 2016, you are required or “deemed” to file for both your own retirement and for any benefits you are due as a spouse, no matter what age you are.
Do the rules for deemed filing apply to all benefits?
No, the rules for deemed filing apply only to retirement benefits based on your own work record and to the spousal benefits (including divorced spouse’s) you receive based on retirement. There are two exceptions in which deemed filing does not apply to these benefits. If you receive a spousal benefit because you are caring for a child who is under age 16 or disabled or if you receive spouse's benefits and are also entitled to disability, deemed filing does not apply and you are therefore not required or “deemed” to file for your retirement benefit.