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When Should Spouse Draw?

I think I mostly understand the spousal benefits but am not clear on when to have her draw. I am 64 and plan to work until full retirement age of 66yr 8mos. My wife turns 65 this month. She has not yet filed/drawn benefits. Her draw will be well under 50% of mine so she will go the spousal route and draw 50% of mine then I finally draw at 66yr 8mos. I believe there are a few scenarios and I'm not sure which is best and would greatly appreciate some advise.

 

1. If she files at 65, I believe she will receive benefits based on her earnings and then she can convert to the spousal route when I draw at 66yr 8mos. What are the negative and positive impacts if any, if she does this? I am assuming (but am not clear) that when she starts drawing 50% of mine that this would be reduced somehow since she had filed early (when she becomes 65).

 

Also, if she files and draws at 65, since I am still working and have not filed, what are the tax and penalty implications currently? For the same of argument, let's my income is $100K annually and we file married - jointly.

 

2. Should she wait and file when I do? Assuming this would also mean we would pay her Medicare premiums out of pocket until she does draw. What would this "waiting" scenario gain us?

 

Thank you!!!

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