One last thing to consider: any benefits withheld due to excess earnings aren't permanently lost. When you reach Full Retirement Age, SSA recalculates your benefit amount to give you credit for months when benefits were withheld. It's not a simple 1:1 return, but you do eventually recoup some of what was withheld. Many people don't realize this aspect of the earnings test!

I'm new to this community but wanted to share my experience since I went through this exact situation last year. I was also confused about the earnings test when I started collecting at 62 while still doing some freelance work. The key thing that helped me was understanding that SSA looks at when you EARN the money, not when you receive it. So if you do contract work in January but don't get paid until March, it counts toward January's earnings for the monthly test. This matters because if you go over the annual limit, they look at it month by month to see which months to withhold benefits. Also, just wanted to add that if you're thinking about timing when to start benefits, remember that your monthly benefit amount increases by about 8% for each year you delay past your full retirement age (up to age 70). So even though the earnings test goes away at FRA, there's still a financial incentive to wait if you can afford to. But everyone's situation is different - sounds like you've done your homework on what income counts!

In case anyone finds this thread later, here's a summary of key points about earnings after 60 and Social Security benefits: 1. Earnings at any age count toward your benefit calculation if they're among your highest 35 years 2. After age 60, earnings are counted at their actual dollar value (not indexed for inflation) 3. Your MySocialSecurity estimates assume you'll continue earning at your current level until you claim 4. Higher earnings between 62-70 can significantly increase your benefit, especially if replacing lower-earning years 5. There's no earnings limit after reaching Full Retirement Age (FRA) 6. Waiting until 70 to claim gives you the maximum possible monthly benefit (an extra 8% per year beyond FRA) 7. Check your earnings record annually to ensure all your income is properly recorded I hope this helps the original poster and others in similar situations!

This is such valuable information for anyone navigating Social Security planning! I'm 59 and considering a career change that could potentially increase my earnings significantly over the next few years. Reading about your situation and everyone's responses gives me hope that it's not "too late" to improve my SS benefits. The explanation about the 35-year calculation using your highest earning years regardless of when they occurred is particularly helpful. I had always assumed there was some kind of cutoff where later earnings didn't matter as much. It's encouraging to know that even at our age, career improvements can still have a meaningful impact on our retirement security. Best of luck with your new position - what an exciting opportunity at 62!

This thread has been absolutely incredible to read through as someone just starting to dive into Social Security planning! I'm 48 with 2 zero-income years from when I was between jobs, and honestly had no idea that working additional years could make such a meaningful impact on retirement benefits. The real-world examples everyone has shared are so valuable - seeing @Oliver Schulz's detailed breakdown of going from $1,580 to $1,750 monthly, and @Aidan Percy's experience with a $120 increase after just one year of work really helps make this concrete rather than abstract. That consistent 10-15% benefit increase range across different situations gives me confidence that this isn't just theoretical. I'm particularly grateful for all the practical resources mentioned - the detailed SSA calculator, the Claimyr service for actually getting through to agents, and @Oliver Schulz's spreadsheet approach. As someone who finds the SSA website overwhelming, having these alternative paths to get real information is invaluable. @Fidel Carson - thanks for starting such an important discussion! Your question has clearly resonated with so many people in similar situations. It's amazing how one thoughtful post can generate this kind of community knowledge-sharing. Based on everything shared here, it sounds like your plan to work 5 years at $80k could really pay off in terms of long-term retirement security. This is exactly why I love this community - real people sharing real experiences to help each other make better financial decisions!

Wow, reading through this entire thread has been like getting a masterclass in Social Security planning! I'm 51 with 4 zero-income years from various life circumstances, and I had no clue that working a few more years could make such a significant difference in retirement benefits. The consistency of everyone's experiences here is really striking - whether it's the detailed calculations from @Oliver Schulz, the real-world examples from @Aidan Percy and others, or the practical tips about navigating the SSA system, that 10-15% benefit increase keeps showing up across different situations. For someone like me, that could mean an extra $150-200+ per month for life! What I find most encouraging is how many people have successfully made this transition back to work in their 50s and early 60s. @NebulaNomad's question about workforce re-entry really resonated with me - it's one thing to understand the financial benefits, but another to actually make that leap back into working life. I'm definitely going to download my earnings history and try that detailed SSA calculator that several people mentioned. And if I get stuck, the Claimyr service sounds like it might be worth trying to get some personalized guidance. @Fidel Carson - thank you for asking such a practical and important question! This discussion has been incredibly valuable for so many of us in similar situations. It really highlights how strategic thinking about our 50s and 60s can have a lasting impact on retirement security.

As a newcomer to this community, I'm incredibly grateful for this comprehensive discussion! I'm 62 and own a small S-Corp, so Kennedy's question has provided a wealth of information that's directly applicable to my situation. What really stands out to me is how this thread has evolved from a simple question about S-Corp distributions and Social Security into a complete roadmap for business owners approaching retirement. The key takeaways I'm noting are: 1. S-Corp distributions don't count as earned income for Social Security earnings test purposes 2. But they DO count toward combined income for determining if SS benefits become taxable 3. Documentation of your changing business role is critical for both IRS and future reference 4. Medicare enrollment is separate from Social Security claiming and has its own deadlines 5. The interaction between all these factors makes professional guidance valuable Kennedy, your situation has generated such practical, actionable advice. I'm particularly appreciative of the specific publication references, the 20-hour safe harbor guideline, and the reminder about estimated tax payments on S-Corp distributions. For others in similar situations reading this later - this thread demonstrates why it's worth seeking out communities like this where people share real-world experience alongside professional insights. The combination of personal experiences and technical knowledge has made a complex topic much more approachable. Thank you to everyone who contributed their expertise and time to help not just Kennedy, but all of us navigating similar decisions!

As a newcomer to this community, I'm blown away by the depth and quality of advice shared here! This thread has become an incredible resource that goes far beyond Kennedy's original question about S-Corp distributions. What I find most valuable is how everyone has emphasized the interconnected nature of these decisions. It's not just about Social Security timing or just about S-Corp tax strategy - it's about how all these pieces work together. The reminder about Medicare enrollment deadlines, the tax implications of combined income, and the importance of proper documentation are all critical considerations I wouldn't have thought of initially. Kennedy, your situation perfectly illustrates why business owners face such unique retirement planning challenges compared to traditional employees. The flexibility of S-Corp structures can be advantageous (like avoiding the earnings test with distributions) but also requires careful navigation to stay compliant with both IRS and SSA rules. For anyone else reading this thread, I'd echo the recommendation to work with professionals who understand both the tax and Social Security sides of these decisions. The complexity level definitely warrants expert guidance, especially when you're dealing with business ownership transitions. Thank you to everyone who shared their knowledge and experiences - this is exactly the kind of community support that makes complex financial decisions feel more manageable!

One thing I haven't seen mentioned yet is that some people work around this by opening a joint account with a spouse or adult child specifically for the SS deposit, then having that person set up the splits to their individual accounts. Obviously this requires a lot of trust and may not work for everyone's situation, but it's another option if you have a trusted family member who's willing to help manage the logistics. The joint account holder can then distribute funds according to your predetermined plan. Just make sure to keep detailed records for tax purposes and discuss this arrangement thoroughly with whoever you're considering as a joint holder.

Just to add another practical tip that might help - if you do go with one of the banks that offers virtual sub-accounts or bucket features, make sure to ask about their mobile app capabilities. I switched to a credit union last year specifically for their automatic transfer features, and while the service works great, their mobile app is pretty clunky compared to what I was used to. Since you'll probably want to monitor how your SS deposit gets allocated each month, especially in the beginning, having a user-friendly mobile interface can make a big difference. Some of the newer digital banks like SoFi and Ally tend to have really intuitive apps, while some traditional banks and credit unions are still catching up on the tech side. It's worth doing a quick test of their mobile experience before fully committing to switching your banking setup.