Every New Year brings changes to tax laws, Social Security benefits, healthcare requirements, and more—and in many cases, this information can be difficult for individuals to locate or understand.
With this in mind, Manning & Napier created a set of reference guides to break down exactly what individuals need to know about the new tax law, Social Security, Medicare, and long-term care going into 2018.
One important point shared in the Social Security Guide reminds readers that, while the more recent Tax Cuts and Jobs Act of 2017 did not have a direct impact on the Social Security system, the Bipartisan Budget Act of 2015 put an end to “File and Suspend” and “Deemed Filing” strategies. The closure of the “Deemed Filing” loophole only affects individuals who reached age 62 after December 31, 2015.
“Therefore, a limited portion of the population can currently take advantage of the deemed filing loophole—filing for and receiving spousal benefits while allowing benefits on your own work record continue to grow,” experts explain.
Manning & Napier experts further point out, according to the Congressional Budget Office, Social Security outlays have exceeded revenues each year beginning in 2010. Based on the current trajectory, the balance of the retirement portion of the Social Security trust fund is projected to be exhausted in 2031.
“Change is inevitable to ensure the continuation of Social Security benefits,” they warn. “Given the passing of the recent Tax Cuts and Jobs Act, many speculate that reforms for Social Security and other social programs may be next on the docket. Future changes to Social Security could include pushing back the retirement age, reducing benefits/benefit caps, raising taxes, increasing eligibility requirements, means testing, and others.”
All four updated guides from Manning & Napier are available for download here.