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Switching Social Security
Old 04-28-2006, 12:53 PM   #1
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Switching Social Security

I saw this comment about social security payments on a blog recently:

"Collect benefits at age 62, but at age 65, withdraw the Social Security claim, pay back all Social Security benefits received, and resubmit a claim for maximum benefits."

There was no other explanation. Has anyone ever heard about this? Can this be done?
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Re: Switching Social Security
Old 04-28-2006, 03:40 PM   #2
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Re: Switching Social Security

I don't know the answer.

But why would anyone want to do that in the first place?* The only reason I can think of is that for whatever reason, they realize at age 65,* that they will live much longer than previously anticipated.* The next question would be how that realization come about?* A new discovery in the medical field?

Sam
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Re: Switching Social Security
Old 04-28-2006, 03:54 PM   #3
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Re: Switching Social Security

I can see how one might come out ahead if you take SS at age 62 but keep every penney of it and then give it all back when you reach age 65 but then file a new claim to get benefits starting at age 65 instead of age 62.

If you can do that, you could make out pretty well since you would have invested the SS money from age 62 to age 65 and would also get a higher benefit payment from age 65 since it would be based on your age 65 benefit amount and not your age 62 benefit amount.

I just don't know if one can actually do that or not.
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Re: Switching Social Security
Old 04-28-2006, 03:59 PM   #4
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Re: Switching Social Security

Short answer: Yeah, you can do that! Just call your SS office.
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Re: Switching Social Security
Old 04-28-2006, 04:07 PM   #5
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Re: Switching Social Security

Sundance, is there a name for this? Would I say, "I'd like to do a reverse dilby recharacterization, and I need form 9922."
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Re: Switching Social Security
Old 04-28-2006, 04:28 PM   #6
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Re: Switching Social Security

Quote:
Originally Posted by Sundance Kid
Short answer:* Yeah, you can do that!* Just call your SS office.
So could this strategy work where the lower benefit spouse takes early payments,generates interrim cash flow, repays and then ups to full spouse benefit at Full Retirement of the higher benefit spouse?
Thanks
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Re: Switching Social Security
Old 04-28-2006, 04:35 PM   #7
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Re: Switching Social Security

Wait until JG figures this out...first credit card arbitrage...now with social security.

I am curious about this. I did search on the ss adm. site and couldnt find anything.....
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Re: Switching Social Security
Old 04-28-2006, 05:09 PM   #8
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Re: Switching Social Security

I want to do the double-whammy reverse polarization ionization on my taxes....

Activate the Zolfenhauer field!
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Re: Switching Social Security
Old 04-28-2006, 05:52 PM   #9
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Re: Switching Social Security

Bongo2:

Don't know how you're supposed to phrase the question. I've spent the last hour,
"Beating the water, to a froth," on the Social Security website and can't find the answer, to my question.

I'd just call your local SS office and in your own "I wanna but a pair of shoes voice,"
just ask them, how to do this?

I know, it can be done!! I've thought about doing it but, can't get the DW to agree
to part with 18,000. They don't charge you interest, they just ask you to refund the amount you've been paid,- to date and then re-calculate a new start date, with higher benefits.

Check out : www.ssa.gov, or call them on their 1-800 number They'll answer your question, in a heartbeat.

Get back with us and let us know what you found out!!

I am sorry, I couldn't provide you with more precise information.
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Re: Switching Social Security
Old 04-28-2006, 08:29 PM   #10
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Re: Switching Social Security

OMG if this is true ------

Why wouldn't we all do this. Save the SS money and pay it back and pocket the nominal 5% interest. We'd then get a bump up in payments to save until we're 65, 66 or 70.

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Re: Switching Social Security
Old 04-28-2006, 08:37 PM   #11
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Re: Switching Social Security

Never heard of it; but if it's true, count me in.
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Re: Switching Social Security
Old 04-28-2006, 08:50 PM   #12
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Re: Switching Social Security

Quote:
Originally Posted by Eagle43
Never heard of it; but if it's true, count me in.
This just doesn't pass the sniff test. I can find nothing about it anywhere on the SS website or on Google. It sounds too good to be true, and that almost always means it isn't, just another myth in a long line of urban legends.

However, I would love to find out I'm wrong.

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Re: Switching Social Security
Old 04-28-2006, 09:15 PM   #13
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Re: Switching Social Security

I've heard of this also about a year ago and believe it is legit. I think it was Ray Lucia, but can't quite remember. One of the benefits i think was if you decide to go back to work, you can undo the taxes you might have paid in or stop/reset SS and avoid the taxes and disincentives. ??

I have posed the question to Ray's team. Now I'll probably get 100 calls to sign up!

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Re: Switching Social Security
Old 04-28-2006, 09:26 PM   #14
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Re: Switching Social Security

At this point, my plan is to wait until 66 to 68 to begin collecting my SS. Assuming this is legit, what if you were in a hight tax bracket and had to pay income tax on your payments for 5 years and decided to return the payments. How would you amend your returns that are older than 3 years to recoup the taxes you paid?
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Re: Switching Social Security
Old 04-28-2006, 10:13 PM   #15
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Re: Switching Social Security

Just call The Social Security Administration! They have an 800 number. Just ask
the question.

I know it's legit!
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Re: Switching Social Security
Old 04-28-2006, 10:25 PM   #16
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Re: Switching Social Security

Quote:
Originally Posted by Sundance Kid
Just call The Social Security Administration! They have an 800 number. Just ask
the question.

I know it's legit!
Kid, this is the third time you've told us to call SS. You are the one saying this is "legit", why don't you call them and confirm?

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Re: Switching Social Security
Old 04-28-2006, 10:35 PM   #17
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Re: Switching Social Security

Cuz, darlin,---I'm not the one that raised the question.

I tried to help a guy out, by answering his question. You don't wanna believe,
then it's on you. You don't have time to make a phone call; then don't ask me to do it for you.

Hope ya'll have a good day!
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Re: Switching Social Security
Old 04-28-2006, 11:06 PM   #18
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Re: Switching Social Security

Yes, you can do this. You would need to withdraw your retirement application and repay the money. There is not any interest that is charged.

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Re: Switching Social Security
Old 04-28-2006, 11:18 PM   #19
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Re: Switching Social Security

See SSA bulletin or letter 1515.2.
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Re: Switching Social Security
Old 04-28-2006, 11:54 PM   #20
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Re: Switching Social Security

Try Handbook 1515.5
http://www.ssa.gov/OP_Home/handbook/...book-1515.html
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