According to the Social Security Administration’s Rules and Regulations, individuals who are full retirement age or older when they file for Social Security benefits, have the right to request a lump-sum payment for up to six months of retroactive benefits. This strategy, of course, will slightly reduce your benefit amount through life-expectancy, but is an option.  In order to get the full 6 months, you had to have started your file date 6 months past full retirement age.  If you file three months past Full Retirement Age, you would be entitled to 3 months retroactive and so on.

This was attractive to many folks that have waited to file for their benefits.  It is a quick infusion of cash with a small benefit reduction some people are willing to accept.   To many, worth the wait, and an attractive option.  

Well things have changed.  We are hearing reports that these requests are being denied.  People are having to justify their need for the additional cash requested in their applications.  There should be no such need for additional information – it is their money they have earned and are entitled to request.

If this happens to you, we suggest you contact your local Congressman to have your situation re-evaluated.  

With the closure of the local Social Security field offices in mid -March, things are definitely challenging.  In the absence of in-person appointments, benefit applications are being processed online and over the phone.  We cannot emphasize enough, the need to know what you are entitled to before making that call.  Mistakes can be made, benefit options missed, additional income strategies ignored – it is up to you to educate yourself on options available.

Pillars LLC is in the Corinth, MS area but service all 50 states.  Roy and Diane are both National Social Security Advisors and Roy is a former CPA of over 40 years.  You may contact them at dthompson@pillarsllc.com, on their website at www.pillarsllc.com or call at 601-954-0699.  KNOW before you GO!!