# 20 C.F.R. § 404.406 (2026): Reduction for maximum because of retroactive effect of application for monthly benefits > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_406 ## Section - **Citation:** 20 C.F.R. § 404.406 (2026) - **Heading:** Reduction for maximum because of retroactive effect of application for monthly benefits - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 20 CFR: Employees' Benefits / Chapter III: SOCIAL SECURITY ADMINISTRATION / Part 404: FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950- ) / Subpart E: Deductions › Reductions › and Nonpayments of Benefits / § 404.406: § 404.406 Reduction for maximum because of retroactive effect of application for monthly benefits. ## Text Under the provisions described in § 404.403, beginning with the month in which a person files an application and becomes entitled to benefits on an insured individual's earnings record, the benefit rate of other persons entitled on the same earnings record (aside from the individual on whose earnings record entitlement is based) are adjusted downward, if necessary, so that the maximum benefits payable on one earnings record will not be exceeded. An application may also be effective (retroactively) for benefits for months before the month of filing (see § 404.603). For any month before the month of filing, however, benefits that have been previously certified by the Administration for payment to other persons (on the same earnings record) are not changed. Rather, the benefit payment of the person filing the application in the later month is reduced for each month of the retroactive period to the extent that may be necessary, so that no earlier payment to some other person is made erroneous. This means that for each month of the retroactive period the amount payable to the person filing the later application is the difference, if any, between (a) the total amount of benefits actually certified for payment to other persons for that month, and (b) the maximum amount of benefits payable for that month to all persons, including the person filing later. [32 FR 19159, Dec. 20, 1967, as amended at 64 FR 14608, Mar. 26, 1999] ## Nearby sections - [20 C.F.R. § 404.401 (2026) § 404.401 Deduction, reduction, and nonpayment of monthly benefits or lump-sum death payments.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_401.md) - [20 C.F.R. § 404.401a (2026) § 404.401a When we do not pay benefits because of a disability beneficiary's work activity.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_401a.md) - [20 C.F.R. § 404.402 (2026) § 404.402 Interrelationship of deductions, reductions, adjustments, and nonpayment of benefits.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_402.md) - [20 C.F.R. § 404.403 (2026) § 404.403 Reduction where total monthly benefits exceed maximum family benefits payable.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_403.md) - [20 C.F.R. § 404.404 (2026) § 404.404 How reduction for maximum affects insured individual and other persons entitled on his earnings record.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_404.md) - [20 C.F.R. § 404.405 (2026) § 404.405 Situations where total benefits can exceed maximum because of “savings clause.”](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_405.md) - [20 C.F.R. § 404.406 (2026) § 404.406 Reduction for maximum because of retroactive effect of application for monthly benefits.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_406.md) - [20 C.F.R. § 404.407 (2026) § 404.407 Reduction because of entitlement to other benefits.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_407.md) - [20 C.F.R. § 404.408 (2026) § 404.408 Reduction of benefits based on disability on account of receipt of certain other disability benefits provided under Federal, State, or local laws or plans.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_408.md) - [20 C.F.R. § 404.408a (2026) § 404.408a Reduction where spouse is receiving a Government pension.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_408a.md) - [20 C.F.R. § 404.408b (2026) § 404.408b Reduction of retroactive monthly social security benefits where supplemental security income (SSI) payments were received for the same period.](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_408b.md) - [20 C.F.R. § 404.409 (2026) § 404.409 What is full retirement age?](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_409.md) - [20 C.F.R. § 404.410 (2026) § 404.410 How does SSA reduce my benefits when my entitlement begins before full retirement age?](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_410.md) - [20 C.F.R. § 404.411 (2026) § 404.411 How are benefits reduced for age when a person is entitled to two or more benefits?](https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_411.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T20_P404_S404_406. 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