One other benefit to consider: if you work after starting Social Security benefits and pay FICA taxes, the SSA will automatically recalculate your benefit amount annually. If your current earnings are higher than one of the 35 years used to calculate your initial benefit, your benefit amount could actually INCREASE. So working could potentially give you a permanent raise in your Social Security payment!

Just wanted to add my experience as someone who went through this exact situation last year. I reached my FRA at 66 and 8 months, then went back to work full-time making about $55,000. My Social Security benefits continued without any reduction whatsoever. The only surprise was that my tax bill was higher at the end of the year since more of my SS became taxable, but that's just regular income tax - not a penalty or reduction in benefits. Also, make sure to factor in that you'll be paying FICA taxes again on your wages, but as others mentioned, this could actually boost your future SS payments if your current salary is higher than some of your lower earning years from the past. Definitely take the job if you need the income - the earnings test really does disappear completely once you hit FRA!

I'm going through the exact same thing! Just got one of these letters about my old IBM 401k from 2002 and have been putting off dealing with it for weeks. Reading everyone's experiences here is such a huge relief - sounds like 99% of the time it's just money we already rolled over. The tax return trick that @Sofia Price suggested is brilliant! I'm definitely going to dig out my old returns tonight to look for that IBM 1099-R instead of trying to navigate their phone system. @Ava Rodriguez thanks for the federal employee perspective - knowing that 90%+ of these cases are false alarms makes me feel so much better. It's kind of absurd that the SSA is sending out these anxiety-inducing letters about money we already have, but at least this community has been incredibly helpful! I'll report back if I find anything surprising, but based on everyone's stories I'm expecting to find that 1099-R and put this whole thing to rest. Thanks everyone for sharing your experiences - you've probably saved me hours of unnecessary stress and phone calls!

Just wanted to follow up on this thread since so many people are dealing with the same situation! I finally dug out my 2017 tax return and found the 1099-R from PwC showing a rollover distribution of $33,847. Given that the SSA letter mentioned $32,606, this is clearly the same money - the difference is probably just market fluctuations between when PwC reported the benefit amount to SSA versus when I actually rolled it over. @Sofia Price your tax return suggestion was absolutely perfect! Took me 15 minutes to find the form versus what would have been hours on the phone with PwC benefits. For anyone else dealing with these letters: check your tax returns from the year you did your rollover first. Look for a 1099-R from the employer mentioned in the SSA letter. If the amounts are reasonably close, you can put the letter in your "resolved" pile and move on with your life. Thanks everyone for sharing your experiences - this thread turned a potentially stressful situation into a quick 15-minute confirmation!

I had another question about this - if I file for benefits mid-year, does the earnings limit apply to all my earnings for the entire year, or just what I earn after I start receiving benefits?

This is such a helpful thread! I'm in a similar situation - turning 66 next year and trying to figure out the best strategy. One thing I wanted to add is that if you do end up going over the earnings limit, the "lost" benefits aren't actually lost forever. Once you reach your full retirement age, SSA recalculates your benefit and gives you credit for those withheld months by increasing your monthly payment. So if you're close to FRA anyway, the temporary reduction might not be as bad as it seems. Has anyone here actually experienced this recalculation process?

To summarize what everyone is saying (correctly): 1. The 45-hour per month limitation is ONLY for self-employed individuals who own or have substantial interest in a business. 2. As a 1099 independent contractor with no ownership stake, you're only subject to the annual earnings limit ($24,780 for 2025 if you're under full retirement age). 3. You can work any number of hours as long as your earnings stay under that threshold. 4. Make sure you have documentation that clearly shows you're truly an independent contractor and not a disguised business owner. 5. Be aware that if you exceed the annual limit, SSA will withhold $1 in benefits for every $2 you earn above the limit. One additional note: Keep track of your projected annual earnings carefully. If you think you might exceed the limit, it's better to report this to SSA proactively than to face an overpayment notice later.

Yes, that's correct about the monthly earnings test in your first year. For the remainder of 2025 after you start receiving benefits in April, you'll be subject to a monthly limit (approximately $2,065 based on the $24,780 annual limit) rather than the annual limit. So from April-December 2025, you'd need to keep your earnings under $2,065 each month. Then in 2026, it switches to the annual limit instead of monthly. This is actually helpful for many people because it allows you to earn whatever you want in the months before you start collecting benefits (January-March 2025 in your case).

Thank you everyone for the responses. I'm going to try the mobile app first for reporting, and then try to get an appointment with a Claims Specialist who understands concurrent entitlement situations. I'll make sure to get everything in writing and keep good records of all our reporting. Just to clarify - my spouse benefits are definitely under the child-in-care provision because of our disabled adult daughter, not regular spousal benefits (which I know I couldn't get until 62). It sounds like both my wife and daughter need to report their earnings directly to SSA, regardless of employer reporting. I appreciate all the helpful information!

You've got a solid plan! Just wanted to add a few tips from my experience dealing with similar reporting situations: 1. When using the mobile app, screenshot everything after you submit your wage reports - the confirmation numbers and dates. SSA's system sometimes doesn't save properly and having proof you reported can save you headaches later. 2. For your daughter's DAC benefits, keep detailed records of her work hours and earnings. If she ever approaches the SGA limit ($1,550/month in 2025), you'll want to show SSA the pattern of her earnings to demonstrate it's part-time/intermittent work rather than substantial gainful activity. 3. Consider setting calendar reminders to report quarterly rather than waiting for annual estimates. This helps avoid large overpayments if earnings are higher than expected. 4. Since your situation involves child-in-care benefits with an adult disabled child, make sure the Claims Specialist documents in your file that this is an ongoing DAC case, not a regular child's case. This prevents future confusion when staff reviews your benefits. Good luck! The fact that you're being proactive about this puts you ahead of most people in similar situations.