When a person finally wins their SSDI case, they have often been waiting 1-3 years. During that time, benefits have been accumulating, and the SSA may be required to pay all that money retroactively in a single payment.
What Are Retroactive Benefits?
SSDI retroactive benefits are payments corresponding to the period between your "Established Onset Date" (EOD) and when your case is approved. However, there is a mandatory 5-month waiting period, the SSA does not pay the first 5 months after your EOD.
How Much Can You Receive?
It depends on your monthly benefit and how long it has been since your disability onset date. For example: if your monthly benefit is $1,500 and you won after 2 years, you could receive up to $27,000 in retroactive payments (24 months minus the 5-month waiting period = 19 months × $1,500).
The Disability Onset Date Is Crucial
Your attorney must argue for the earliest possible onset date, this maximizes your retroactive payments. The SSA may accept a date based on when your symptoms began limiting your work, even if you didn't consult a doctor immediately.
Attorney Fees and Retroactive Benefits
In SSDI cases, attorney fees are regulated by law: 25% of your retroactive benefits, with a maximum of $7,200. This means if you receive $40,000 in retroactive payments, your attorney receives $7,200 and you receive $32,800. You never pay if you lose.