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.

BREAKING DOWN '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.

  1. Normal Retirement Age - NRA

    The age at which people can receive full benefits upon leaving ...
  2. Social Security Benefits

    The monetary benefits received by retired workers who have paid ...
  3. Social Security Number - SSN

    A nine-digit number assigned to citizens, some temporary residents ...
  4. Social Security

    A United States federal program of social insurance and benefits ...
  5. Disability-Income (DI) Insurance

    An insurance product that provides supplementary income in the ...
  6. Social Security Administration ...

    A U.S. government agency created in 1935 by President Franklin ...
Related Articles
  1. Retirement

    Tips On How To Use IRAs To Boost Retirement Savings

    According to the Trustees of the Social Security Fund, the fund will be depleted by 2037. Are you ready?
  2. Bonds & Fixed Income

    Passing The Buck: The Hidden Costs Of Annuities

    These may look like good retirement vehicles, but beware of the fees buried in the fine print.
  3. Budgeting

    Managing Income During Retirement

    Learn some sensible strategies for making your hard-earned savings last for as long as you need them.
  4. Savings

    6 Retirement Savings Tips For 45- To 54-Year-Olds

    Now is the time to kick savings into high gear. Find out how.
  5. Retirement

    Saving For Retirement: The Quest For Success

    We'll show you how to set yourself up to retire in style.
  6. Retirement

    Will Your Retirement Income Be Enough?

    Find out how to determine whether you're on the path to a comfortable retirement, or financial ruin.
  7. Retirement

    Introduction To Social Security

    You've probably contributed to this fund, but will you reap the benefits? Find out here.
  8. Budgeting

    The Demise Of The Defined-Benefit Plan

    Experts are making bleak predictions for your post-work years. Be prepared and plan for your future.
  9. Retirement

    Should Social Security Be Privatized?

    The idea of controlling your own retirement money is one that continues to hold appeal for a large segment of voters.
  10. Insurance

    What's The Difference Between Medicare And Medicaid?

    One program is for the poor; the other is for the elderly. Learn which is which.
  1. Do tax brackets include Social Security?

    A portion of your Social Security benefits may be subject to federal taxation using tax brackets. Your tax bracket is determined ... Read Full Answer >>
  2. Are Cafeteria plans subject to FICA, ERISA or FUTA?

    Cafeteria plans are employer-sponsored benefit plans that provide both taxable and nontaxable, or qualified, benefit options ... Read Full Answer >>
  3. Am I losing the right to collect spousal Social Security benefits before I collect ...

    The short answer is yes, if you haven't reached age 62 by December 31, 2015. The October 2015 budget bill disrupted two strategies ... Read Full Answer >>
  4. What are the maximum Social Security disability benefits?

    The average Social Security disability benefit amount for a recipient of Social Security Disability Insurance (SSDI) in 2 ... Read Full Answer >>
  5. Does Canada have Social Security numbers?

    Social Insurance numbers (SINs) in Canada are equivalent to Social Security numbers (SSNs) in the United States. Canadian ... Read Full Answer >>
  6. Is Social Security inflation-protected?

    Social Security benefits are inflation-protected. Social Security was created in 1935, and taxes were collected for the first ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  2. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  3. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  4. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
  5. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
  6. Discount Bond

    A bond that is issued for less than its par (or face) value, or a bond currently trading for less than its par value in the ...
Trading Center