He took Social Security benefits early and now doesn’t need them. What to do? – Money Matters

Q. I took Social Security early and now I have a great offer to do some consulting and don’t need this extra money. I’d like to pay back my benefits and then wait until age 70 to collect. I know there have been some recent changes, is this option still available?

A. As with most questions surrounding Social Security the answer is it all depends on a few different factors. The recent changes have taken away some of the claiming strategies for Social Security benefits.

You can still withdraw your Social Security claim and re-apply at a future date but only if you became entitled to retirement benefits less than 12 months ago. You are only allowed to withdraw your claim for benefits once in your lifetime. If you are eligible for a withdrawal you must repay all of your benefits including any benefits your spouse or children received based on your application. Anyone who received benefits based on your application must consent in writing to the withdrawal. If you had any Medicare premiums or voluntary federal income tax withheld these must also be repaid. Social Security Form SSA-521 is used to withdraw your application. If you are on Medicare you need to state whether your Medicare coverage should or should not be included in the request for withdrawal. Once the Social Security office has reviewed and approved your request it will notify you of the amount of benefits you will need to repay. If you became entitled to retirement benefits 12 or more months ago you can no longer withdraw your application and repay benefits.

Once you reach your full retirement you do have another option. At full retirement age and before age 70 you can suspend your benefits. If you suspend your benefits they will automatically start again the month you reach age 70. You can change your mind and begin benefits before age 70 by requesting that your benefits be reinstated. If you voluntarily suspend your retirement benefits anyone receiving benefits on your record will not be able to receive benefits during the period that your benefits are suspended. The one exception is a divorced spouse; they can continue to receive benefits based on your record during the suspension period. Any benefits you are receiving on someone else’s record will also be suspended. If you or anyone else affected by your suspension is enrolled in Medicare Part B the premiums will no longer be a deduction, they will be billed and must be paid in a timely manner.

You may want to contact your local Social Security office, call the 800 number or meet with a tax or financial professional knowledgeable in matters of Social Security to review your personal situation.

This story was originally published September 19, 2016 at 7:20 PM with the headline "He took Social Security benefits early and now doesn’t need them. What to do? – Money Matters."