Social Security Overpayment Withholding Rate: 50% Update April 2025

Tune into "Empowering Your Finance" for a crucial update on Social Security overpayments! The Social Security Administration (SSA) has recently reduced the default withholding rate for overpayment recoveries from 100% to 50%. This change is significant for beneficiaries who receive new overpayment notices on or after April 25, 2025.

This 50% rate applies specifically to Title II benefits, which include retirement, survivors, and disability insurance (SSDI) payments. At the same time, a reduction from the brief return to a 100% rate, which took effect on March 27, 2025, and the loss of half of a monthly benefit can still cause significant financial hardship for many recipients.

It's essential to note that most prior overpayments of Title II benefits remain subject to a 10% cap that was in effect earlier. The withholding rate for Supplemental Security Income (SSI) benefits remains unchanged at 10%.

If you receive an overpayment notice, you typically have 90 days to contact the Social Security Administration (SSA) to dispute the overpayment. You can request a lower withholding rate due to financial need, appeal the overpayment decision, or request a waiver of recovery.

Stay informed about how these changes could affect you and your financial journey.

Read The Full Blog Article: Social Security Overpayment Withholding Rate: 50% Update April 2025

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