How to “undo” early Social Security payments

Early Social Security payments may be reduced, but not necessarily forever. There are little-known exceptions to what most people think of as a permanent, lifetime reduction, according to Money Watch.

To add to the first exception discussed in Friday’s blog, another exception to “undo” or minimize the early Social Security reduction is to get a job and get an “Adjustment to the Reduction Factor” or ARF.

You may be aware that if you are under 66 and earn over a certain amount ($15,120 in 2013), some or all of your Social Security payments will be withheld.

But you will eventually get credit back for any payments that you miss out on. For example, you filed at 62 because you lost your job, but get a good paying job six months later. Your earnings are so high that all of your Social Security checks are withheld from then on.

But when you turn 66, two important changes will occur: First, your Social Security payments will restart because your earnings no longer count against you. Second, the payments will be at the 96 percent level, not your old 75 percent level. That is because you have automatically received a ARF.

We will discuss the third way to “undo” your early withdrawing of Social Security benefits in Wednesday’s blog.

If you or someone you know needs help with a Social Security claim, contact the disability lawyers at Fleschner, Stark, Tanoos & Newlin.