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Maybe the Do-Over isn't done just yet

3-21-2011 - We reported in December that the Social Security "do-over" was, well, done for. Now it looks like the do-over strategy may be around a while longer.

The do-over is a strategy that allowed someone to collect Social Security benefits before full retirement age, then repay the benefits in full without interest, effectively resetting the Social Security clock so he/she can begin collecting a new, larger benefits check. The Social Security Administration, considering the practice to essentially be an interest-free loan to retirees, signaled its intention to put an end to the practice.

The AARP, citing the current financial crisis many seniors find themselves in, has now requested that the Social Secueity Administration give seniors who have opted for this strategy until Dec. 8, 2011 to withdraw their applications and pay back their benefits without interest. No final word yet from the Social Security Administration. Stay tuned.

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