Recs

0

Social Security Debt: Do You Owe and Should You Worry?

Social Security is a vital part of people's financial security. But some recipients received overpayments in the past, and the Social Security Administration has historically gone after those people -- and even their family members -- to recoup that money by garnishing tax refunds and other controversial practices.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the Social Security Administration's practice in collecting debts. Dan notes that the SSA identified 400,000 people who owe a total of more than $700 million, and has thus far collected about $55 million by seizing tax refunds. But lawmakers are now questioning the fairness of this practice, especially when it involves taking money initially paid to other family members years ago. Dan runs through some of the reasons why you might owe money to the SSA, and while he points out that the SSA has suspended its debt-collection practice pending more investigation, that's no guarantee that you won't have to pay back overpaid benefits at some future time.

How to get even more income during retirement
Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

Have general questions about Social Security? Email them to SocialSecurity@fool.com, and they might be the subject of a future video!


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2920622, ~/Articles/ArticleHandler.aspx, 11/28/2014 8:21:36 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 1 hour ago Sponsored by:
DOW 17,828.24 0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASD 4,791.63 4.31 0.09%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement