More On The End Of The Social Security Buyback
Posted by: Ken Himmler
/ Category: Article Only I am finding more and more articles on the end of the Social Security Buyback and this great loophole could soon close.
If you are unfamilar with the buyback process, there is a provision that allows Social Security recipients to withdraw their original application for benefits and to refile. For many retirees, this can increase their monthly income.
A recent article in the Wall Street Journal explains more on how time to file for this provision is running out. Larry Kotlikoff, a Boston University economics professor who has researched the strategy, likens it to finding tens of thousands of dollars or more "just lying on the sidewalk."
That is because to withdraw your original application you must repay all the money Social Security already has paid you—and your spouse. Depending on how long you have been collecting, that can add up to a hefty sum, as your new benefit amount is based on your current age, not the age at which you originally applied for Social Security.
The strategy is particularly useful for retirees considering buying an immediate annuity, which, in return for a lump sum of cash, provides an immediate stream of monthly checks generally set up so a retiree won’t outlive the money.
Click here to read more of this article: http://online.wsj.com/article/SB10001424052748704125604575449434163879708.html
Tags: retirement benefits, Social Security, social security benefits, social security buyback, social security do over
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