At Extreme Investor Network, we understand the importance of staying informed about changes that can affect your Social Security benefits. Recently, the Social Security Administration announced new policies regarding the collection of overpaid benefits from beneficiaries. These changes will have a significant impact on how much money is withheld from monthly checks for those who owe money to the SSA.
Beginning on March 25, the SSA will no longer collect 100% of a beneficiary’s total monthly benefit to recoup overpaid funds. Instead, the agency will collect either 10% of the total monthly benefit or $10, whichever is greater. This new approach aims to reduce the financial burden on beneficiaries who owe money to the SSA.
If you are currently affected by the old policy, where 100% of your benefits are being withheld, you have the option to call the SSA at 1-800-772-1213 to lower your withholding rate. It’s important to take advantage of this opportunity to avoid unnecessary financial stress.
Overpayments can occur when the amount of benefits due is miscalculated, resulting in checks being sent for higher sums than what beneficiaries are owed. This issue has become more prevalent in recent years, leading to challenges for both beneficiaries and the SSA.
Beneficiaries receiving Supplemental Security Income (SSI), who already face strict limits on their income and assets, are particularly vulnerable to overpayment issues. The SSA is committed to addressing these challenges and is implementing new policies to alleviate the burden on affected beneficiaries.
If you are currently facing overpayment issues, you can request a lower withholding rate by contacting the SSA. Additionally, the agency is extending the maximum time for repayment plans to 60 months, making it easier for beneficiaries to request a waiver, and shifting the burden of proof when determining fault for the error.
At Extreme Investor Network, we strive to provide valuable information to help you make informed financial decisions. Stay tuned for more updates and tips on managing your personal finances effectively.
