Social Security Claw Back Operation coming in July

Investment Analysis Clubs Macro Economic Trends and Risks
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{{ However, if the Social Security Administration happened to issue you an overpayment in the past, the agency is now seeking to get it back.

An overpayment can happen when a beneficiary fails to update a change in income, for instance, and as a result Social Security overpays them. Or the SSA can incorrectly calculate a person’s benefits.

In April, the SSA announced it would begin withholding 50% of benefit payments to overpaid recipients. That’s a partial retreat from the SSA’s initial announcement in March to withhold all of a recipient’s benefit until their overpayment was recouped.

Previously, the agency had been withholding only 10% of a recipient’s benefits to recover overpayments. }}

Come for the Social Security checks, but don’t audit the tax returns of millionaires and billionaires. {{ LOL }}.

intercst

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IIRC prior to the 10% of benefits they used to ask for a 100% lump sum if the person had that much in an account

Mike

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What account? You mean their checking or savings account?

I guess they could ask for it, but if the Gov’t was going to take 75% of someone’s savings to satisfy a Social Security error it should be easy to find a lawyer to argue that’s an undue hardship.

Garnishing the 10% of the beneficiary’s monthly benefit until the overpayment is recaptured seems reasonable to me, but maybe you could have a sliding scale to ramp it up to 50% for folks in the top IRMAA bracket (Incomes of $500,000 to $750,000/yr)

intercst

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Ya get what ya voted for !

I remember getting a paycheck that was about 4 times larger than normal. Had not worked any OT during that pay period ( 2 week cycle ), so I knew that the accounting system screwed up. But I knew better than to cash the check, didn’t need anybody to tell me that there had been a huge screwup in my favor. Remember going to my boss, with a smirk on my face, and asking " what new job did I get promoted to ?", and then showing him the check.

From what I’ve read about the SS overpayment snafu, it mostly happened to low(er) income folks, so they don’t have much if any surplus available to pay it back with. And if they voted for this regime, then I salute their willingness to take one for the “team”,lol

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Any assets AFAIK…this was on 60 minutes last nightx

Mike

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