Ways to Correct Social Security Mistakes
Making a Social Security mistake is not something that is uncommon. It can happen to anyone. Maybe you filed for Social Security before the retirement age, or you started taking your benefits earlier than you should ideally have. But you do not need to worry because there are options to rectify the situation. The very first thing you need to do is to determine how long has it been since you started taking the benefits. In this article, we discuss the ways to correct Social Security mistakes.
If it has not been 12 months, you can still withdraw the application of benefits. In that case, you need to pay back the benefits that you returned. Doing this will be as if the Social Security mistake never happened. During times like this when the world is hit by a pandemic, the withdrawal of the application is a viable income solution. But a lot of people might end up losing their jobs too in times of crisis. In this situation, taking the benefits of your Social Security may be a good option for you.
Repay
If you think you will be able to regain your job, then it is advised to withdraw your application. If you cannot find a job, collecting your Social Security is a viable option. That way you are essentially retired. However, it is recommended to make that decision with caution. This is because you can only make use of it once. Also, you need to repay any payments received. If you have any family members on your record, they have to repay as well. You need to make sure that you withdraw the claim, not just suspend the payments.
Social Security benefits
If you have reached the full retirement age, you can also choose to suspend your benefits. If you have been collecting your benefits for more than 12 months, you would not be able to withdraw your benefits any longer. In such a situation it would be better to suspend the benefits once you reach the full retirement age. This would be beneficial, as it would allow for your Social Security benefit to earn delayed credits of 8% per year until you reach age 70. You can also request the voluntary suspension by a phone call, an you would not have to repay suspended benefits. Keep in mind, that in this case, all the family benefits are ceased.
Retirement earnings
You can not withdraw your application if you are outside the 12-month window. If you are between the ages of 62 and full retirement age, there is one more way to fix your mistake. If possible, go back to your job. Then, Social Security will withhold the benefits if your earnings exceed a certain level. These are called retirement earnings test exempt amounts. Social Security will adjust the reduction on your benefits for each month you don’t receive a check due to the earnings test. That depends on the amount of money you are earning.
This brings us to the end of our discussion on the best ways to correct social security mistakes.
