You Could Lose Your Social Security Benefits to the Trump Administration's Mistake

Social Security provides at least half of monthly income for many men and older women, and a significant share of people rely on it for nearly all of their money. Benefits can shrink when overpayments occur. Overpayments may result from an Administration error in calculating entitlement or from a recipient failing to report changes in family or work circumstances. Once the overpayment is identified, an overpayment notice is issued and repayment is requested within 30 days. If repayment is not made, clawbacks can follow, withholding part of Social Security checks until the extra amount is repaid. A prior rule limited withholding to 10%, while a later change reversed that limitation.

"For 39% of men and 44% of older women, Social Security provides at least half of their monthly income, according to the Social Security Administration. And, over 10% of both men and women rely on Social Security for at least 90% of their money. That's a huge number of people who need retirement benefits to be deposited on schedule."

"One of the most common ways retirees lose Social Security benefits is if they experience an overpayment and are subject to clawbacks. While this may sound technical, it's actually pretty simple. Here's how this could happen: The Social Security Administration makes an error in how much income you are entitled to and sends you benefits for the wrong amount. You may not even realize that you are getting more money than you should be."

"Eventually, the error comes to light, and the Social Security Administration realizes there was an overpayment. They send you an overpayment notice and ask you to pay back the money within 30 days. If you don't repay the money the Social Security asked for, you could be subject to clawbacks. Essentially, this means part of your Social Security checks will be withheld until you have paid back the extra money you were accidentally sent."

"The traditional rule was that 100% of your Social Security benefits could be withheld if you were subject to clawbacks. The Biden Administration made a change to this rule, limiting the amount that could be withdrawn for repayment to 10%. The Trump Administration reversed this, p"

Read at 24/7 Wall St.