Q & A

Can I just “opt-out” of Social Security and Medicare?

Complete Question: I’m in my 20’s and I’m not happy with the current Social Security situation, not to mention the state of healthcare in the US right now. I don’t think it’s right that I should have to pay FICA taxes just to have my full retirement age increased and my benefit decreased. I think if I start planning now, 40 years ahead of time, I can take care of myself. So do I have to pay FICA taxes? Or is there a way to opt-out of the system altogether and just not apply for benefits when I’m in my 60’s? I’ve heard the Amish do that, but I don’t know how true that is.

Answer: Well, it is not that simple. Technically, there are laws that allow certain groups, such as the Amish, to opt-out of Social Security and Medicare; however, not just anyone can do that. In fact, most people cannot do that. I will use some excerpts from the official Social Security laws to illustrate so there is no confusion as to whether or not this would apply to you:

“As a member of certain religious groups, you may qualify for an exemption from the Social Security tax. You must waive your rights to all benefits under the Social Security Act, including hospital insurance benefits.” In addition to this statement, the SSA has multiple other requirements that must be met for the exemption. The following are just a few to give you an idea:

  • “You must be a member of a recognized religious sect that has established tenets and teachings by which you are conscientiously opposed to accepting benefits under a private or public insurance plan…”
  • “…Both you and your employer must have approved applications for exemptions…”
  • “The religious group of which you are a member has been in existence continuously since December 31, 1950.”
  • “The religious group makes reasonable provision for its dependent members and has done so since December 31, 1950.”

The Amish are not required to pay FICA taxes because they meet these requirements in addition to the other ones not mentioned here. For example, those that are self-employed do not pay these taxes; but since the exemption has to be approved by the employer, if an Amish person is working for a non-Amish employer, they will pay these taxes. However, as part of their religious beliefs, they refuse to collect Social Security, Medicare, unemployment, welfare, etc., even if they paid FICA taxes through a non-Amish employer, which coincides with the requirement in the first bullet point mentioned above. Furthermore, the Amish have a long history of taking care of their own members in old age and sickness.

So in short, there are laws that would allow you to “opt-out”, but they are very strict and only for special situations. So chances are you are just going to have to keep paying those FICA taxes.

C.J. Miles, MSA, MBAHCM
Research Analyst & Certified Social Security Advisor
AMAC Foundation
Notice: Any information contained in this posting that may be construed as an opinion is solely that of the author and is not necessarily that of AMAC Foundation or any of its affiliates. The author would like to thank amishreligiousfreedom.org for providing assistance with information on the Amish culture. If you have any questions about Social Security or Medicare, you can reply below or email C.J. Miles at [email protected]. When replying to this website, please do not provide any personal identification information, such as Social Security numbers.

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