A 40-second read by Nicholas Scheibner, CFP®: If you began taking Social Security before full-retirement age and are looking to postpone payments until a later time, there is a solution: the 1-year payback rule. The 1-year payback rule gives you the ability to pay back the amount of benefits you have received, and delay your Social Security check until age 70. You have 12 months from the day you began collecting Social Security to do this. This would ultimately increase the monthly payments you would receive and would maximize your Social Security.
In order to do this, we highly recommend that you make an appointment with your local Social Security office and speak to them in person. You will need to bring in a blank check for the repayment and Social Security will tell you the exact amount you will need to pay back. You will want to tell them that you are looking to “Withdraw my application and pay back all benefits I have received.” This will suspend your benefits until you refile at age 70.
If you have any questions, please contact the Baron Financial Group Team.
Disclosure: This material is not intended to be relied upon as a forecast, research, tax or investment advice. Please consult your financial planning and tax professional for personal advice.