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Thursday, March 3, 2016

What's a Loophole?

I forgot to blog on this earlier, after Congress wrote it back in October as part of Public Law 114-74 (11/2/15), the Bipartisan Budget Act of 2015. While primarily a budget bill, it includes a few tax changes tucked in to raise some revenue. Most notable are the significant changes to how partnerships will be audited in the future. But also tucked in, with no committee discussion that I'm aware of, were changes to Social Security benefits, such as the procedure to file and suspend while a spouse claims spousal benefits on the suspended account. Meanwhile, both spouses Social Security accounts continue to grow. If it applies to a couple, they can easily get a few extra tens of thousands of dollars of benefits. (There were a few other changes to Social Security benefits as well.)

But one overlooked part of the drafting of the part of the legislation with the Social Security changes is the section title:


So, it appears that some loopholes are intended!

What do you think?

For more on the Social Security changes: (note that if you'll be 66 by the end of April 2016, there may still be an opportunity for you to use the unintended loophole)

For more about what is a loophole - see a 2008 op ed of mine from the San Diego Union-Tribune.

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