Did you know there’s a social security loophole that allows you to get an interest free loan for one year?
You might say the loophole is that it’s not really a loan at all, as the Social Security Administration does not give loans.
You do have to be at least 62, the earliest you can receive social security retirement benefits, to use this interest free loan strategy.
According to the Social Security Administration, “1 in 5 Americans currently receive a Social Security benefit, 1/3 are Disabled, Dependents, or Survivors, and there are +63 million beneficiaries.
Individuals qualify for social security benefits as a result of monies contributed through their payroll deduction. Benefits can be claimed as early as 62 or if you have a disability at age 18 +.
There are also survivor benefits that could be received, Supplemental Security benefits for those with limited income age 65 or older, blind, or disabled.
Although Social Security does not make loans, you are able to receive Social Security for up to one year and then ‘withdraw’ your application and pay all of the monies received back, along with Form SSA-521.
The person would also need to pay back any taxes withheld, any medicare premiums that may have been withheld, and any spousal or family benefits paid.
A person is only allowed to do this once in their lifetime.
This loophole, in essence, allows you to get an interest free loan from social security for up to one year.
Had you heard of this loophole before now?
Need a loan. I get ssi.