Social Security Reverses Plan to Withhold 100% of Benefits to Recoup Overpayments
As of April 25, the SSA will no longer require beneficiaries who have been accidentally overpaid to have 100% of their monthly benefit check withheld until the balance is paid, reversing an earlier decision.


The Social Security Administration is walking back its policy that would have required beneficiaries who had been accidentally overpaid to have 100% of their monthly benefit check withheld to pay down the balance. The change comes less than two months after the agency announced it would reinstate a longstanding policy of withholding 100% of benefit checks until the balance is paid off.
In an “emergency message” dated April 25, the Social Security Administration set a withholding rate of 50% of each monthly benefit check to recoup money from beneficiaries who were paid more than they were eligible to receive.
Generally, beneficiaries are responsible for reporting changes that could affect their eligibility or payments, such as a change in income. According to the SSA, incorrect or incomplete information from this self-reporting is a leading cause of payment errors, but some do arise from mistakes by the agency.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
“Improper payments have been a longstanding challenge for SSA. While the Agency has taken actions to address this challenge, it needs to do more, and OIG’s recommendations can guide the Agency as it determines those corrective actions,” said Michelle L. Anderson, Assistant Inspector General for Audit and Acting Inspector General. “Without better access to data, increased automation, systems modernization, and policy or legislative changes, improper payments will continue to be a major challenge for SSA into the future.”
In a July 2024 report, the SSA’s Office of the Inspector General said there were about $71.8 billion in benefits — less than 1% of the $8.6 trillion paid out — in improper payments between fiscal years 2015 and 2022. While not all of these were overpayments, most fell into that category. In another report, the Office of Inspector General (OIG) said overpayments in the Old Age, Survivors, and Disability Insurance program added up to roughly $13.5 billion in the four years from 2020 until 2023.
“We have the significant responsibility to be good stewards of the trust funds for the American people,” said Lee Dudek, Acting Commissioner of Social Security. “It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds.”
The agency is required by law to try to reclaim any overpayments as they occur.
90-day grace period to appeal SSA’s claim
The 50% withholding applies to overpayments of retirement, family and survivor benefits, and Social Security Disability Insurance (SSDI). Most prior overpayments will remain subject to the 10% cap, established in March 2024, as will any overpayments of Supplemental Security Income (SSI).
The April 25 message from the SSA’s Office of Legal Policy and Office of Income Security Programs states that “language about the 10% withholding rate will be updated to 50% in outgoing overpayment notices.”
Beneficiaries who receive will have 90 days to appeal the agency’s claim that they were overpaid. They can also request a waiver of repayment, or a repayment rate below 50% for reasons of financial need. If no claim is made, withholding will begin after 90 days. The SSA has a fact sheet with more information on appeal and repayment options.
Requiring 100% repayment is not new
Opting to withhold 100% of benefits to reclaim what the agency has identified as overpayments isn’t new to the second Trump administration. The policy was also in place during the Obama administration and the first Trump administration. The reduced withholding rate of 10% was put into place in 2024 during the Biden administration because the 100% rate proved too difficult for some beneficiaries to pay. The announcement that the SSA will now withhold 50% of the monthly benefits should be a welcome reprieve for many.
For more information about overpayments and appeal rights, visit www.ssa.gov.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.
-
Dow Hits New Intraday High on Fed Day: Stock Market Today
Not even the most important stock in the world could keep the oldest equity index down on a significant day for markets.
-
Savings Goal Calculator
Tools Want to know how much you need to save each month to reach your financial goals? Our calculator helps you build a realistic savings plan.
-
The Seven Best-Paying Side Gigs For Retirees
If you're worried you won't have enough saved for a comfortable retirement, or that life after work will be boring, these well-paid roles could be the answer.
-
I'm 51 and My Portfolio Is Up. I'm Planning to Retire at 60 and Want to Start Moving out of Stocks. Is That Smart?
We ask financial experts for advice.
-
Gray Divorce Can Throw Your Retirement a Curveball: What to Know
If you're entering retirement and going through a divorce at the same time, you've got some work to do to shore up your long-term financial security.
-
Quiz: Do You Know What Medicare Gives You for Free?
This quiz tests your knowledge of the services that Medicare provides at no cost to you.
-
Optimize, Grow, Retain: The Power of Annual Client Reviews
Financial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
Confused About the New COVID Vaccine and Medicare? What You Need to Know
Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.