As someone who just went through this process myself, I wanted to add that when you contact SSA about missing earnings, be prepared for it to take some time. In my case, it took about 6 weeks for them to review my documentation and update my record. They had to verify the information with my former employer. Also, since you mentioned planning to retire next year, keep in mind that if you're born in 1960, your full retirement age is 67, not the 66 and 10 months mentioned above. The FRA gradually increases based on birth year. You can find your exact FRA on the SSA website or in your online account. One more tip: if you do decide to claim early at 62, the reduction is permanent - it doesn't go back to the full amount when you reach FRA. So make sure you're comfortable with that lower monthly payment for the rest of your life before making that decision.

Just wanted to chime in as someone who works in retirement planning - this whole thread is a perfect example of why it's so important to understand all the moving pieces with Social Security! I see this confusion all the time with clients. The survivor benefits piece that everyone identified is huge - when someone loses a spouse, they can often end up with a higher total monthly income from Social Security than they had when both spouses were alive, especially if the deceased spouse had higher earnings. One thing I'd add to the great advice already given: when you're reviewing your earnings record, pay special attention to years where you might have had multiple jobs or changed employers mid-year. Those transitions sometimes create gaps in reporting. Also, if you ever worked for tips (restaurant, salon, etc.), make sure those tip amounts were properly reported - I've seen cases where the base wage was recorded but not the tips. Since you're planning to retire next year, this is also a good time to think about Medicare enrollment timing if you're not already covered through an employer plan. The Social Security and Medicare timelines don't always align perfectly, so it's worth planning both together.

Great to see you've got a solid plan worked out! Just wanted to add one more consideration - since you mentioned you and your husband both work part-time, you might also want to factor in any state taxes on the IRA withdrawal depending on where you live. Some states don't tax retirement income at all, while others do. Also, when you do withdraw from the IRA, make sure to have taxes withheld if you think you'll owe them - nothing worse than getting hit with a big tax bill next April! Most IRA custodians will withhold 10-20% for federal taxes if you request it during the withdrawal process. Sounds like you've really thought this through carefully with everyone's input here. Best of luck with the car shopping!

Just wanted to chime in as someone who went through this exact scenario two years ago! I was 69 and needed to replace my HVAC system unexpectedly. Cashed out about $15K from my traditional IRA to cover it. Like others have said, your monthly SS benefit amount stays the same - that was my biggest concern too. The main impact was on taxes. Since my husband and I were already in the 85% taxable range for SS benefits, the IRA withdrawal just meant we paid regular income tax on that $15K (plus it made more of our SS taxable, but we were already at the max). One thing I learned after the fact - if you're going to do this regularly or have other large expenses coming up, you might want to consider doing smaller withdrawals over multiple years instead of one big lump sum. Keeps you from jumping tax brackets unnecessarily. The peace of mind from having reliable transportation was totally worth it for us. Just make sure to set aside about 25-30% of whatever you withdraw for taxes to be safe!

One thing to keep in mind is that SSA typically reviews earnings annually, not monthly. So if your mom claims early and works above the limit, she likely won't see immediate withholding - it usually happens the following year after they process her annual earnings report. This means she could receive several months of full benefits before any withholding occurs. Also, I'd suggest having her create a my.ssa.gov account if she hasn't already. She can view her earnings record, get benefit estimates, and track any changes to her account online. This makes it much easier to stay on top of everything and catch any errors early. The decision really comes down to her specific circumstances. If she's facing immediate financial hardship and the early benefits would prevent more serious consequences (like losing her home), then the permanent reduction might be an acceptable trade-off. Just make sure you're both prepared for the complexity of managing the earnings test if she continues working.

I'm also navigating this exact situation with my elderly parent! One thing our financial advisor mentioned that might be helpful: if your mom does claim early and later regrets it, she has a one-time option to withdraw her Social Security application within the first 12 months. She'd have to pay back all benefits received (without interest), but it would be like she never filed at all - wiping out the permanent reduction. This could serve as a "safety net" if her financial situation improves unexpectedly or if the earnings withholding creates more complications than anticipated. Obviously not ideal since she'd lose access to the money she already received, but it's good to know the option exists. Also, make sure she understands that only EARNED income counts toward the earnings limit - things like pension payments, 401k withdrawals, investment income, etc. don't affect her Social Security benefits at all. Sometimes people think ALL income counts when it's really just wages and self-employment earnings.

Grace, you're definitely not too late! I went through this exact same situation two years ago - also missed applying right at my FRA due to holiday chaos. The 6-month retroactive window that others mentioned is absolutely correct. I applied in February for January benefits and received my full January payment in March along with my February payment. The key is to apply online at ssa.gov as soon as possible and clearly specify January 2025 as your desired benefit start date. There's a specific question about this during the application process. Don't worry about the phone wait times - the online application is actually faster and you can save your progress if needed. You've got this!

As someone who works with seniors on benefits applications, I want to emphasize what others have said - you're absolutely fine! The 6-month retroactive window is standard policy, and mid-January is still very early. When you apply online at ssa.gov, there's a clear section where you select your desired benefit start date - just choose January 2025. One tip: have your tax returns from the last 2 years handy when you apply, as the system may ask about your earnings history. Also, once you submit the application, you'll get a receipt number - save that! It helps if you need to call later with questions. The whole process usually takes about 30-45 minutes online and is much more reliable than trying to get through on the phone right now.

I'm so sorry for your loss, Ravi. Dealing with Social Security paperwork while grieving is incredibly difficult, but you're asking all the right questions. Yes, both your mother and stepmother can absolutely receive survivor benefits from your father's record. This is one of those situations where Social Security actually works in favor of families - multiple survivors can collect without reducing each other's benefits. Here's what you need to know: - Your mom qualifies as a divorced spouse (15-year marriage exceeds the 10-year minimum, and she never remarried) - Your stepmom qualifies as the surviving widow (married at time of death) - Both must apply separately using Form SSA-10 - Each will need: death certificate, their marriage certificate, and your mom will also need the divorce decree Important timing consideration: Your mom at 67 can get 100% of the survivor benefit, but your stepmom at 62 would only get about 81% if she claims now. If your stepmom can wait until her full retirement age (around 66-67), she'd get the full amount. Before applying, both should check their own benefit estimates on my.ssa.gov to make sure survivor benefits would actually be higher than their own retirement benefits. The process can be frustrating with phone wait times, but don't give up. Your father worked hard for these benefits, and both women are entitled to them. Take care of yourself during this difficult time.

I'm deeply sorry for your loss, Ravi. Losing a parent is never easy, and having to navigate Social Security benefits during such a difficult time adds extra stress to an already overwhelming situation. The great news is that both your mother and stepmother can absolutely receive survivor benefits from your father's record simultaneously. This is actually one of the more family-friendly aspects of Social Security - multiple qualified survivors can draw benefits without reducing what the others receive. Your situation breaks down like this: - Your mom qualifies for divorced spouse survivor benefits (married 15 years, which exceeds the 10-year requirement, and never remarried) - Your stepmother qualifies as the surviving widow (married to your father at the time of his death) Both will need to apply separately using Form SSA-10 and provide the necessary documentation: death certificate, their respective marriage certificates, and your mom will also need the divorce decree. One crucial point about timing: your mom at 67 can receive the full 100% survivor benefit, but your stepmother at 62 would only receive about 81% if she claims immediately. If your stepmother can afford to wait until closer to her full retirement age (66-67), she'd get significantly more. Before either applies, I'd strongly recommend they both check their own estimated benefits on my.ssa.gov to ensure the survivor benefits would actually be higher than their own retirement benefits - SSA pays whichever is higher, but not both. Your father earned these benefits through years of hard work, and both women are absolutely entitled to them. Take care of yourself during this process.