File-and-suspend is hot. The once-obscure Social Security strategy for married couples has become almost mainstream in the past couple of years; a growing number of financial planners recommend the strategy to clients.
But you’d be well-advised to get it while you can: file-and-suspend is at the top of Washington’s hit list for changes to retirement policy.
“It comes up more often than anything else in meetings I’ve attended this year,” says Jack VanDerhei, research director for the Employee Benefit Research Institute. “A lot of people assume it will be phased out—the timing really depends on what vehicle it gets attached to.”
That’s not the only potential change to the law or tax code that could impact client retirement plans. Other candidates include an end to backdoor Roth IRAs, unstretching the stretch IRA, and tighter caps on pretax contributions to 401(k)s.
My WealthManagement.com column this month explores the most most talked-about possible changes in retirement policy and law that we we could see enacted in the next few years.