Although the COLA increase takes effect for Social Security beneficiaries in the United States as of the first payment of the year, some lucky ones will be able to count on this increase ahead of time. However, it is true that only a group of citizens will be able to enjoy this advance payment of the check from the Administration.
In order to be able to have this payment in advance we must meet two requirements. One is related to the type of benefit we have accepted. The other requirement is linked to the collection method we usually use. This collection method is essential to get this check in advance as well as any other check that the Administration sends earlier than usual.
However, this does not mean that the rest of the Social Security beneficiaries will not get their monthly check. It is important to remember that each of the beneficiaries will have access to their checks in the same way. Whether before or after, all beneficiaries of this benefit will be able to cash their check. Likewise, any other checks will reach Americans who have an accepted benefit in the same manner.
WHO WILL GET THE SOCIAL SECURITY COLA 2024 IN ADVANCE?
In order to have this check advanced, two conditions must be met. There is no way to cash the check in advance without meeting these two conditions. This is important to understand, because if we are not on this list it will be impossible to cash the check early. We will collect the payment, but not in advance, but in the year 2024.
These are the requirements:
- Have a fully cleared Supplemental Security Income check. Social Security SSI payments that are in the process of being accepted may not arrive by this day.
- Activate Direct Deposit as a collection method. This is also very important, as without this collection method we will not have the advance payment, but it will arrive in January 2024.
Regardless of the amount of the check we will be able to get it in advance. Also, remember that the January 2024 Supplemental Security Income payment will have the added COLA of 3.2%. This will bring the maximum of $914 per month to approximately $943.
The day the Social Security Administration will send this payment in advance will be December 29, 2023. Direct Deposit retirees will receive the payment on the same day. The rest will have to wait to get the money.
WHY CAN THE SUPPLEMENTAL SECURITY INCOME ARRIVE EARLIER?
The reason is that in the month of January 2024 there is an irregularity in the calendar. The Social Security Administration never sends payments on holidays or weekends. And since Supplemental Security Income payments are always on the 1st of the month and January 1st is a holiday, the payments go out earlier.
So for that reason the Administration sends out the check on the immediately preceding business day, i.e., December 29th. This makes it possible for Americans with Direct Deposit to have the first payment with COLA 2024 before the end of 2023.
Still, for attorney and tax purposes the payment will pertain to 2024, although in most cases this information does not matter for Supplemental Security Income recipients and other Social Security benefits.