Social Security “Do-Over” Limited to 12 Months

Previously people who took their Social Security retirement benefits before their Full Retirement Age (FRA) could change their mind any time before that FRA, stop their benefits and restart them later.  However, this “Do-Over” or “withdrawal of application” required that you repay all benefits received to that point.  Therefore, it only worked for people who did not need the benefits as income on which to live, e.g., people with higher incomes.

You would do this in order to receive higher monthly benefits in the future according to your increased age when restarting your benefits.  In December 2010, Social Security announced that you would be limited to changing your mind within the first 12 months after starting retirement benefits.  Previously you might have been able to delay this for up to 4 years.  After you file Form SSA-521 with the reason that you want to stop receiving your benefits or “withdraw your application,” you will receive a notice as to the amount of money you need to repay.

If you unexpectedly returned to work after retiring, this might make sense.  Just remember that you only have the first 12 months to make this change.  So follow your passion and find that fulfilling job fast!

Contacting Social Security

Does the thought of trying to contact Social Security (SSA) make a root canal sound like fun?  Here are some tips to make the process of accessing information easier.

If you want to speak to a representative from SSA (1-800-772-1213), avoid calling the day before or after a Federal holiday.  The call center hours are 7 AM to 7 PM.  Most people call during office hours, 9 AM-4 PM.  So calling from 7-9 AM or 4-7 PM provides a better chance of a shorter wait time.   Afternoons are generally slower than mornings.

Making an appointment with SSA (either face-to-face at a SSA office or over the phone) to discuss starting your Medicare or Social Security benefits is a good idea.  You can call the SSA number  (1-800-877-1213) and when prompted, state that you want to make an appointment.  This gets you to a person relatively quickly.  Have your calendar ready.

You cannot set up a SSA appointment online (www.ssa.gov ), but you can access many other services that way, including applying for Social Security or Medicare benefits, estimating your Social Security benefits, etc.

When applying online to start SSA retiree benefits, if you want to make sure a representative will call to go over all your options, put a comment or question in the box at the end of the application.

From all the contacts I have had with SSA, I have found that the representatives really do want to help you find the solution which gives you the highest benefits, so persevere!

Social Security Earnings Test

Did you know you can continue to earn money without losing all your Social Security benefits?  It’s true—this is a common point of confusion for many people.

You should definitely contact Social Security at the end of the year before you reach your Full Retirement Age (FRA — 66 years of age for most soon-to-be retirees).  The year that you reach your FRA has a special earnings limit.  If you will not earn more than $37,680 before you have your birthday that year, you will not lose any Social Security benefits that year.  So it may be a good idea to sign up for your benefits as of January.  Any income over $37,680 earned before your birthday, leads to $1 of Social Security benefits being deducted for every $3 earned.

By waiting to receive Social Security until FRA, beneficiaries can earn as much money as they want without losing any Social Security benefits.

If the Social Security retiree recipient is between 62 and their FRA, they can earn up to $14,160 per year without losing any benefits.  If the beneficiary’s annual income is more than that, they lose $1 in Social Security benefits for every $2 in earnings from work over $14,160.

So… check ahead!  Call Social Security and find out the best time to make the most of your benefits at 1-800-772-1213.  Winter in Tucson, anyone?