How to Withdraw From Social Security Benefits and Why You'd Want To

Social Security benefits become available to those who qualify as early as the age of 62, but if you can wait until 70, you'll get the maximum payment in your monthly check. That said, sometimes it doesn't make financial sense to wait. But what if you apply for benefits and then come into unexpected funds, like an inheritance, or decide to keep working full-time? If you've been receiving Social Security for less than a year, you have the option to withdraw from the program completely. 

Depending on your situation, canceling your benefits application may be relatively easy, but that's not always the case for everyone. Below, we'll go how to withdraw your application and answer some important questions about what happens if you do. 

For more, don't miss the Social Security payment schedule and whether Social Security recipients will have to pay taxes this year. 

Reasons you might want to cancel your benefits application

One of the primary reasons you might want to withdraw your benefits application is that you've come into a better financial situation. Whether it's something like getting a high-paying job or winning the lotto (it could happen), a boost in your income while you're receiving Social Security will likely reduce your monthly benefit amount, and possibly get it suspended altogether. 

Another reason is that you just changed your mind and want to wait until you get a bigger monthly payment later on. 

Read more: How to estimate your Social Security benefits before you retire

How long do I have to withdraw from benefits?

Withdrawal requests can be made up to a year after receiving your benefit approval letter. You can also submit the request before you've been approved if you change your mind shortly after applying. There's a hard, one-time limit: You can only cancel the application once, period. 

If you've been receiving benefits for over a year, you won't be able to withdraw from them. However, if you've reached the full retirement age but are not 70 yet, you can ask the Social Security Administration to suspend your benefits instead.

What happens when I withdraw from benefits?

If you submitted your withdrawal request before you were approved for benefits, you're pretty much in the clear and won't have much else to worry about until you're ready to reapply for benefits later. 

However, beneficiaries looking to withdraw their application who have already begun to receive payments will have to pay everything back . 

Since withdrawing from Social Security benefits is essentially a "do-over," you will pay everything back so it will become available to you again once you're ready to reapply. 

Any benefits you or your family received will need to be paid back, including:

• Benefits your spouse or children received, whether they live with you or not. 
• Money withheld for Medicare, Voluntary Tax Withholding (VTW), and garnishments

If you received Medicare benefits, you can choose to keep them or withdraw from the program as well. Keeping Medicare Part B will require payments to be made to The Centers for Medicare & Medicaid Services (CMS) going forward. 

Withdrawing vs. suspending benefits

Although they sound similar, there are a few distinct differences between withdrawing from benefits and suspending them. 

Withdrawing your benefits application can be done at any age as long as you meet the criteria to do so, where you will need to be at least full retirement age to suspend your benefits. There's also no hard limit on the number of times you can suspend your benefits as long as you're between full retirement age and 70. 

If you're eligible to suspend your benefits, you aren't required to pay anything back, as benefits are just on pause instead of canceled completely. Another benefit is you don't have to submit a form to suspend your benefits -- you can just call the SSA and they can take care of the rest for you.

How to withdraw your Social Security application

Now that you have an idea of what withdrawing from your Social Security benefits application entails, here's how to submit the request to the SSA. 

• Download the Social Security Form SSA-521
• Print and fill out the form, and include the reason for the withdrawal request
• If you receive Medicare, you must state whether you want to keep it or withdraw from it
• Send the completed form to your local Social Security office

If you need help, you can call the SSA at 1-800-772-1213 and let them know you're looking to cancel your benefits application. 

After you submit the form, the SSA will notify you with the decision of your request, along with the amount of benefits you'll need to repay. Once the withdrawal is approved, if you change your mind again, you have 60 days to cancel the withdrawal application. 

For more, check out the Social Security Fairness Act and the Social Security and SSDI cheat sheet.