I'm curious - did your SSDI lawyer ever explain any of this to you? When I went through the SSDI process, my attorney never mentioned anything about how it would affect future retirement benefits. Seems like something they should cover.

As someone who's been through a similar situation, I can confirm what others have said - the SSDI to retirement conversion at FRA does NOT penalize you for spousal benefits. You'll be treated as filing for retirement at your FRA, not earlier. One tip I'd add: when your husband does file in 3 years and you apply for the spousal benefit, make sure to ask the SSA representative to explain exactly how they calculated your spousal amount. Given that your current benefit is $1,850 and his projected benefit is $3,400, you should be eligible for about $1,700 - $1,850 = $850 additional per month (50% of $3,400 = $1,700, minus your own benefit). Also, keep good records of your SSDI start date and FRA conversion. Some representatives aren't familiar with disability conversions and might initially make errors. Having your documentation ready can save you headaches later.

I went through this exact same situation last year when I turned 67 and started collecting SS while still working! The frustration with getting clear answers from both SSA and IRS is so real - I must have spent 6 hours on hold between the two agencies. What you're doing with the extra $200 withholding is perfect. I did something similar and had no issues at tax time. The key thing I learned is that as long as your total withholding (regular + extra) covers either 90% of this year's tax or 100% of last year's tax, you're golden. No penalties, no quarterly payment forms needed. One tip: keep good records of when you started the extra withholding and how much. It helped me when I filed my taxes to have everything documented. Also, don't let anyone scare you into thinking you need to do BOTH withholding AND quarterly payments - that's overkill and completely unnecessary. You're handling this the smart way. The extra withholding from your paycheck is actually better than quarterly payments because the IRS treats it as if you paid evenly throughout the year, even though you didn't start until August.

I'm going through something very similar right now - started collecting SS at 66 while still working part-time. The runaround between SSA and IRS is absolutely maddening! I spent an entire afternoon being transferred back and forth with no real answers. Your approach with the extra $200 withholding is exactly what I ended up doing too after getting nowhere with the phone calls. What really helped me was using the IRS withholding calculator on their website (irs.gov) - you can plug in your expected SS benefits, work income, and current withholding to see if you're on track. Just make sure to account for the fact that your SS benefits will likely be 85% taxable given that you're working full-time. I was surprised how much that added to my tax bill! But the good news is that extra withholding from your paycheck absolutely counts toward any estimated tax requirements. You're definitely on the right path and shouldn't need to mess with quarterly payment forms on top of what you're already doing.

Update: just got off the phone with SSA (finally!!). They said there's a MAJOR backlog of DRC processing affecting thousands of people who turned 70 in the last half of 2024. The rep said their systems are giving priority to people with lower benefit amounts first (supposedly to help those who need it most) and working up to higher benefit amounts. So apparently if your regular benefit is on the higher end, you might wait longer! So ridiculous.

I'm in exactly the same situation! Turned 70 in September 2024 and have been waiting for my DRCs since February. My FRA benefit amount puts me in that higher tier that @Aisha Abdullah mentioned, so I guess I'm stuck waiting until April. It's really frustrating that they don't communicate these delays better - I've been checking my MySocialSecurity account daily wondering if something went wrong with my application. At least now I know it's a widespread issue and not just me. Thanks everyone for sharing your experiences, it really helps to know what to expect!

Just to add one more important detail - once you reach FRA, the monthly benefit amount is fixed (except for COLA increases) regardless of any work you might do. So even if you decide to go back to work part-time or as a consultant, your SS benefit won't be reduced no matter how much you earn. Your Medicare IRMAA might go up, but that's calculated separately from your SS benefit.

Just want to echo what others have said - you're absolutely safe to file at your FRA! I was in a similar situation last year with high consulting income right before retirement and was terrified SSA would penalize me somehow. Turns out those high-earning years actually boosted my monthly benefit since they replaced some lower-earning years from the 1990s in my calculation. The only "penalty" I face is higher Medicare premiums due to IRMAA, but that's completely separate from the Social Security benefit amount. Your financial advisor should have been clearer about this distinction. IRMAA affects Medicare premiums, not SS benefits. Since you're at FRA and done working, there's literally no downside to filing now. Don't delay unnecessarily like I almost did!

i think u should just take the $$ when u can get it!! who knows what tomorrow brings right? my cousin waited to claim and then passed at 69 never got a penny!! so sad

This thread has been incredibly helpful! I'm in a very similar situation - turning 67 next year and planning to keep working. One additional consideration I'd add is to check if your employer offers any phased retirement options or flexible arrangements once you hit FRA. Some companies are more willing to negotiate reduced hours or consulting arrangements for experienced workers, which could give you the best of both worlds - some income, lower tax burden, and time to enjoy retirement while still getting those delayed retirement credits until 70. Also, don't forget that Medicare kicks in at 65 regardless of when you claim Social Security, so factor those premium costs into your planning if you're not already on Medicare!