Social Security benefits offer financial support starting at age 62 with higher payments for those who delay until age 70. However unexpected circumstances may lead you to reconsider. For individuals who have been receiving payments for less than a year the option to withdraw from Social Security benefits is available. Whether it’s due to a financial windfall or a decision to return to full time work, withdrawing could offer more flexibility for your retirement strategy.
Reasons You Might Want to Withdraw From Social Security Benefits
There are several reasons someone might choose to withdraw from Social Security benefits. For instance, if you have received a significant financial boost such as an inheritance or a new, well paying job or your monthly benefit amount might be reduced or even suspended due to increased income.
By canceling your benefits application you can pause payments and potentially reapply at a later date when it makes more financial sense. This approach ensures you maximize your future Social Security benefits.
How Long Do You Have to Withdraw From Benefits?
Withdrawal requests must be submitted within one year of receiving your approval letter. You can also cancel your application before approval if you change your mind early in the process.
Key points to remember:
- You can only withdraw your application once in your lifetime.
- If more than a year has passed you may only be eligible to suspend benefits if you are at full retirement age but under 70.
What Happens When You Withdraw From Benefits?
If you cancel your application before benefits are approved, the process is simple. However for individuals who have already started receiving payments, withdrawing requires repayment of all benefits received.
This includes:
- Benefits paid to your spouse or children.
- Amounts withheld for Medicare, Voluntary Tax Withholding (VTW) or garnishments.
If you received Medicare benefits, you could choose to keep them while withdrawing from Social Security. Continuing Medicare coverage will require ongoing payments to the Centers for Medicare & Medicaid Services (CMS).
Withdrawing vs. Suspending Benefits
Feature | Withdrawing Benefits | Suspending Benefits |
Age requirement | Any age (within one year of approval). | Full retirement age to 70. |
Repayment required | Yes, all benefits received must be repaid. | No repayment is needed. |
Frequency | Only once in a lifetime. | Can be done multiple times if eligible. |
How to Withdraw Your Social Security Application
If you want to know how to withdraw from Social Security benefits, follow these steps:
- Download Form SSA-521 (Request for Withdrawal of Application) from the Social Security website.
- Complete the form, including your reason for the withdrawal request.
- Indicate whether you want to continue or withdraw from Medicare (if applicable).
- Submit the form to your local Social Security office.
For assistance, call the SSA at 1-800-772-1213. After reviewing your application, the SSA will notify you of their decision and provide the repayment amount.
FAQs
1. How many times can I withdraw from Social Security benefits?
You can only withdraw your Social Security benefits application once in your lifetime.
2. What happens to my Medicare benefits if I withdraw from Social Security?
You can choose to continue paying for Medicare benefits, such as Part B, even if you withdraw from Social Security.
3. Can I withdraw from Social Security benefits after one year?
No, withdrawals are only allowed within the first year after receiving your approval letter.