Jack retired early and began receiving Social Security benefits. Now he misses working. Can he stop his benefits and start them again in a few years?
Since it’s been more than 12 months since Jack started receiving benefits, he’ll have to wait until he reaches full retirement age to suspend his benefits. Fortunately, that’s only a couple months away.
Temporarily suspending his benefits will then earn him delayed retirement credits and a higher monthly benefit when he resumes payments. When he fully retires, his Social Security benefits will also be boosted by not being subject to federal income tax as they might be if he works and collects benefits.
It’s different for someone who started receiving Social Security within the last 12 months. They’d need to file IRS Form SSA-521, essentially making their situation as if they’d never received benefits (other requirements may apply). And, they’d have to pay back everything they’d received in benefits.
Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.