Do-Over Option

Definition of 'Do-Over Option'


Allows Social Security recipients to remove their original application for benefits and re-file at a later age. The point of the do-over option is to enable Social Security recipients who started receiving monthly benefits earlier (earliest is 62 years of age) to return funds or pay back the Social Security Administration all funds previously received without having to pay interest or penalties on this money. This will allow recipients to file for Social Security benefits again later and thus receive a higher monthly check for as long as they live. Also referred to as the "reset" option.

Investopedia explains 'Do-Over Option'


For example, if Rob wants to start receiving his Social Security benefits at age 62 instead of waiting until his full retirement age of 66, he will receive fewer benefits. Had Rob waited to start receiving his benefits, he would have received $500 more in monthly benefits, so instead of receiving 2,000, he would currently receive $1,500. If when reaching 66 years of age, Rob refunds four years (48 months) of benefits (48 months multiplied by $1,500 per month or $72,000), his monthly benefit will increase to $2,000.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
Trading Center