This is such valuable information for anyone dealing with IRMAA! I'm 62 and my wife is 64, and we're facing a similar decision. Her income from consulting work is pushing us into IRMAA territory, but she's planning to scale back significantly next year. One thing I learned from our financial planner that might help others: if you're doing Roth conversions during low-income years, you can spread them out over multiple years to stay within lower tax brackets AND avoid accidentally pushing yourself back into IRMAA territory later. Also, for anyone considering this strategy - make sure to factor in Required Minimum Distributions (RMDs) starting at 73. Those could potentially push you back into IRMAA range even if you're trying to keep income low. We're actually doing some Roth conversions now specifically to reduce our future RMDs. The two-year lookback for IRMAA is both a blessing and a curse - it gives you time to plan but also means you're always dealing with old income data. Your 2027 filing strategy based on 2025 income is exactly the kind of forward thinking that can save thousands!

Your strategy is really smart! I'm 59 and my husband just turned 64, and we're dealing with something similar. He's still working as an engineer and his salary is definitely going to trigger IRMAA when I start Medicare in a few years. One thing our tax advisor mentioned that you might want to consider - make sure you're accounting for any part-time work or consulting income your husband might do after he "retires" in March. Even small amounts of earned income could affect your calculations if it pushes you over the thresholds. Also, I've been researching this extensively and found that some people use the gap years to do strategic tax planning - like harvesting capital losses or timing the sale of investments to minimize future tax burden. Since you'll have lower income anyway, it might be a good time to clean up your investment portfolio tax-wise. The $47,000 advantage over 5 years sounds fantastic! Just curious - did you factor in the opportunity cost of not having that Social Security income invested during the delay period? I know with your situation it probably still comes out ahead, but I'm trying to run similar numbers for our scenario.

I'm dealing with a similar situation with my aunt who's on SSI, so this thread has been incredibly valuable! Based on what I'm seeing here, it sounds like the safest approach is: 1. Get multiple documented valuations of the old car's actual condition/value 2. Have your cousin sell to a third party (junkyard, dealer, etc.) rather than to you directly to avoid family transfer scrutiny 3. Keep all receipts and documentation 4. Only after that sale is complete and reported, then gift your vehicle as a separate transaction The horror story from Ella about losing 6 months of benefits really drives home how important it is to get this right the first time. Has anyone had success working with a disability advocate or attorney for something like this? I'm wondering if a consultation might be worth it given how much is at stake. Also, for those who've been through this - did SSA require any specific forms to document the vehicle transactions, or is it just a matter of reporting the resource changes during regular check-ins?

I've been helping SSI recipients with vehicle transitions for over a decade as a benefits counselor, and I want to add some crucial points that haven't been fully covered: **Critical timing issue**: The month you complete the old car sale matters enormously. If your cousin receives the sale proceeds in December, for example, they must spend it down by December 31st - not January 31st. I've seen people lose benefits because they misunderstood this monthly deadline. **Documentation strategy**: Beyond getting valuations, create a "vehicle condition report" with photos, mileage, and a detailed list of all mechanical issues. Have a mechanic sign and date it. This creates an official record that's harder for SSA to dispute later. **The "arms length" transaction is key**: Several people mentioned selling to junkyards/dealers vs family. This is absolutely critical. SSA has a much higher scrutiny standard for intrafamily transfers, even when properly documented. **Reporting timeline**: Report the sale immediately when it happens, but frame it as "disposed of resource at fair market value" with full documentation attached. Don't wait for them to ask - proactive reporting with solid documentation usually prevents problems. **Emergency backup plan**: Keep documentation of the old car's condition even after disposal. I've seen SSA question transactions months or even years later during redeterminations. The key is treating this like a business transaction with complete documentation, not a family favor. Good luck!

Regarding the inflation question - Social Security benefits receive annual Cost of Living Adjustments (COLAs) whether you've claimed benefits yet or not. Your calculated benefit at FRA includes all COLAs that occurred since you turned 62, even if you haven't started receiving benefits yet. So inflation doesn't reduce the advantage of waiting. The break-even analysis (when the total benefits received by waiting equals what you'd get by filing early) typically occurs in your early 80s. If your family has longevity as you mentioned, waiting is statistically advantageous.

I'm glad to see so many helpful responses here! Just wanted to add one practical tip - you can create a my Social Security account at ssa.gov to see your estimated benefits at different claiming ages. It will show you exactly how much you'd get at 63 vs your FRA vs age 70. This can help you make a more informed decision based on your actual numbers rather than general percentages. The account also shows your complete earnings history so you can verify that your 37 years of work are properly recorded. Good luck with your decision!

This is such valuable information! I'm in a similar situation as the original poster - turning 62 next year and considering early retirement while my spouse continues working. Reading through all these responses has really clarified the earnings test for me. I had no idea that only the beneficiary's income counts, not the spouse's. This completely changes my retirement planning calculations! One thing I'm still wondering about - if I do exceed the earnings limit accidentally one year, how quickly do they catch it and start withholding benefits? Do they wait until after tax season or do they monitor it throughout the year somehow?

This thread has been incredibly helpful! I'm 63 and just started collecting SS last month while my husband continues working. I was so worried about his $80k salary affecting my benefits, but now I understand it's only MY earnings that matter. I do want to add one important detail that might help others - when you're self-employed or doing consulting work, SSA looks at when you EARN the money, not when you get paid. So if you do a big project in December but don't get paid until January, that income counts toward the previous year's earnings test. I learned this the hard way when I did some freelance work right before starting benefits. Just something to keep in mind for tax planning!

Reading through this thread has been eye-opening! I'm 62 and was planning to file at my FRA, but seeing all the complexity around the earnings test makes me grateful I have a few more years to plan this out properly. One resource that might help everyone here is the Social Security Administration's online Retirement Estimator tool. You can plug in different scenarios (claiming at 65 vs FRA vs 70) and see projected monthly benefits. While it doesn't factor in the earnings test complexities, it gives you a baseline for running those break-even calculations @Connor O'Reilly mentioned. @Ethan Brown, given all the great advice here, have you been able to narrow down which direction you're leaning? The reduced consulting work option seems like it could be a real winner if the numbers work out. And definitely agree with getting professional help to run the calculations - this is way too important (and complicated) to wing it!

This entire discussion has been incredibly educational! I'm turning 64 next year and was completely unaware of how complex the earnings test could be. The idea of having entire monthly checks withheld upfront rather than just a proportional reduction each month was particularly shocking - that's definitely not how I imagined it working. @Ethan Brown, I hope you don't mind me jumping in, but I wanted to add one consideration that hasn't been mentioned yet: the impact on Medicare Part B premiums. If you're planning to enroll in Medicare at 65, your Part B premiums are based on your income from two years prior, but future income changes could affect IRMAA surcharges down the road. Since you're earning $36k from consulting, this probably won't push you into higher premium brackets, but it's worth factoring into your overall financial planning. The suggestion about reducing your consulting work to stay under the $24,300 limit really does seem like it could be the sweet spot. Even if you had to turn down some projects, the combination of partial consulting income plus full Social Security benefits might exceed what you'd get from full consulting with withheld SS payments. Has anyone here actually tried to precisely manage their income to stay just under the earnings limit? I'm curious how difficult that is in practice, especially for consultants whose project income can be unpredictable.