Social Security Administration Bans “Do-Over” Strategy

Some financial advisers used to suggest that retirees could boost their monthly Social Security checks by repaying all the benefits they had already received and then reapplying for the higher benefits given to those who waited to claim their benefits until they were older. In December 2010, the Social Security Administration banned this “do-over” strategy with the publication of new rules.

Recipients now have twelve months to withdraw their initial decision to receive Social Security checks. A recipient may only withdraw their decision once, and they may not receive delayed retirement credits for the months in which benefits were actually received. Benefit repayments continue to be interest-free.

The Social Security Administration allows beneficiaries who may need to withdraw an application for benefits due to unforeseen changes in circumstances to still do so. These new rules have no effect on disability or survivor benefits.

See Jane Novack, Social Security Administration Kills “Do-Over” To Boost Benefits, Forbes, Dec. 8, 2010.