What is assessed in step 4 of the sequential evaluation process?

In step 4 of the sequential evaluation process, the focus is on assessing the residual functional capacity (RFC) of the individual in relation to their past work. This means determining what physical and mental capabilities the individual retains despite their impairments and whether they can perform their previous job based on that capacity. The RFC evaluation considers the limitations imposed by the individual's medical conditions and how those limitations affect their ability to carry out work-related activities.

This assessment is crucial not only for gauging the individual's overall functionality but also for determining eligibility for disability benefits, as it directly impacts the ability to perform work they have done in the past. If they can still perform any past relevant work, they are typically not considered disabled under the Social Security Administration's guidelines.

The other options, including the impact on daily activities, adaptability to new work, and severity of the impairment, are important considerations in the broader evaluation process but do not specifically pertain to step 4, which is distinctly about assessing the capability to return to previous employment based on residual functional capacity.