Written By Jenny Kiffmeyer, J.D – The Retirement Learning Center
Can an individual who has already filed for Social Security retirement benefits take back their application?
Highlights of the discussion
The Social Security Administration does have a process that allows eligible individuals to withdraw their benefit application for up to 12 months after benefit approval. A person can only cancel their application once and be able to reapply later.
The situation at hand involved a 62-year-old emergency room nurse who decided to retire because shift work had become too difficult. She filed for Social Security and shortly thereafter gave her employer a 30-day notice. After some discussion with her employer, and to her surprise, she was offered a new position with better hours, which she accepted.
Because she will continue to work, the retirement earnings test (RET) will impact her Social Security benefits. The RET applies to individuals who claim Social Security benefits before their full retirement age. Under the RET, individuals may earn up to $23,400 with no effect on their benefits. However, for each dollar earned above the limit, their Social Security benefit is temporarily reduced by one dollar. (Note: these benefits are not lost, just delayed.) Because her compensation is substantially above the $23,400 RET limit, her Social Security benefits would be reduced to zero until she attained full retirement age.
Because of the RET rules, she wanted to stop her Social Security benefits. Fortunately, individuals have a one-time option to withdraw their Social Security application if they meet several conditions. The conditions include
- Filing a withdrawal request within 12 months of benefit eligibility,
- Completing Form SSA-521, Request for Withdrawal of Application, and
- Paying back any benefits already received.
She met these conditions, filed the form, and successfully withdrew her Social Security application.
Conclusion
Sometimes a Social Security “do over” makes sense. The Social Security Administration has a process that allows eligible individuals to withdraw their benefit application for up to 12 months after benefit approval.
