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As someone who just went through this process last year, I can confirm that tracking both hours and income is crucial for self-employed folks. One thing I learned the hard way is that SSA considers "substantial services" differently for different types of businesses. For consulting work like yours, they look at whether you're providing services that require your specific skills and experience - even if you're under 15 hours per month, if you're doing high-level strategic work, they might still consider it substantial. I ended up creating a simple spreadsheet to track both my hours and income monthly. It saved me when SSA did follow up with questions about my work activity. Also, don't forget that the hours test applies to ALL work in your business - not just billable client hours. Time spent on marketing, administration, bookkeeping, etc. all counts toward your monthly total. One more tip: if you're planning to wind down your business gradually, document that process. SSA looks favorably on people who are clearly transitioning toward retirement rather than just trying to work around the rules.

One more important point: run calculations on the tax implications of higher RMDs vs. higher SS benefits. While reducing RMDs is generally helpful, remember that 85% of SS benefits may become taxable if your other income (including RMDs) is high enough. In some cases, the tax advantage of reducing RMDs can be partially offset by increased taxation of your larger SS benefit. This doesn't usually negate the advantage of delaying, but it's something to model in your specific situation. A good tax-focused financial planner can run these projections for you and might identify some additional strategies to minimize lifetime tax burden.

As someone who just went through this decision process myself, I can't stress enough how important it is to factor in your health and family longevity history. The break-even point for delaying SS until 70 is typically around age 82-83, but if you have health concerns or a family history of shorter lifespans, the math changes significantly. I ended up doing a hybrid approach - I delayed SS but also purchased a small immediate annuity to supplement my 401k withdrawals during the bridge years. This gave me some guaranteed income floor while still allowing me to capture most of the delayed retirement credits. Might be worth considering if you're worried about sequence of returns risk during your early retirement years. Also, definitely look into the Roth conversion opportunity during your bridge years - it's one of the best parts of this strategy that often gets overlooked!

UPDATE: Just got back from my meeting with payroll! Turns out I was right to be suspicious. What happened is our agency recently changed how they classify certain positions and didn't properly update the payroll codes. Some of us were accidentally flagged as both regular state employees AND as special category employees that have different withholding requirements. They're fixing it immediately and said I'll get all the extra money back in my next paycheck! Thanks everyone for confirming I wasn't missing something obvious!

Congrats on getting this resolved! This is exactly why it's so important to carefully review every line item on your paystub - these kinds of payroll classification errors happen more often than people realize, especially after system updates or organizational changes. Your persistence paid off big time. Hopefully this helps other state employees who might be experiencing similar issues to know they should definitely question anything that looks off rather than assuming the payroll system is always right.

I'm so sorry you're dealing with this stressful situation. Reading through all these responses has been incredibly educational for me too, as I may face something similar with my elderly parents soon. Based on everything shared here, it sounds like you have a solid action plan: getting that elder law attorney consultation, trying Claimyr to reach SSA, and gathering all your financial documentation for the Medicaid application. One thing I wanted to add that might be helpful - when you're organizing all those expense documents everyone mentioned, don't forget to include things like prescription costs, medical equipment, and any ongoing healthcare expenses you have. These can sometimes be factored into the calculations for how much income you're allowed to keep. Also, I've heard that some elder law attorneys offer free initial consultations for these types of cases, so if cost is a concern, it might be worth calling around to a few different firms. The investment in professional guidance seems like it could potentially save thousands in the long run based on what others have shared here. You're clearly a strong advocate for both yourself and your husband, and you're asking all the right questions. This community has provided such valuable insights - please do keep us updated on how your consultation goes. Wishing you the very best outcome!

I'm so sorry you're going through this difficult situation. My grandfather went through something very similar when he had to enter a nursing home for dementia care. Based on what everyone has shared here, it sounds like you're on the right track with getting that elder law attorney consultation and trying to reach SSA through Claimyr. One thing I learned from our experience that might be helpful - when you meet with the attorney on Thursday, ask them about the timing of your Medicaid application versus when your husband's Social Security gets redirected to the nursing home. In our case, there was about a 2-month gap where we were still receiving grandpa's full SS check while the Medicaid paperwork was being processed, and we had to be very careful about how that money was handled during that transition period. Also, make sure to ask the attorney about any spend-down requirements for your assets. Even with the spousal resource allowance protections, there might be strategic ways to position your finances before the Medicaid approval goes through. This whole process is so complex and emotionally draining, but it sounds like you're doing everything right by getting professional help and asking these important questions early. The fact that this community has been able to provide so much detailed guidance shows there really are protections available - you just have to know how to access them. Sending you strength for your upcoming meetings!

I just want to add something that might be helpful - make sure you understand the difference between your "month of entitlement" and your "payment month." I made this mistake initially and thought there was an error with my benefits. Your month of entitlement is the month you're eligible to receive benefits (the month you reach FRA), but your payment month is always the following month. So if you reach FRA in September, September is your month of entitlement, but you won't actually receive that payment until October. Also, one thing I wish someone had told me: even though you reach FRA on a specific date, Social Security treats it as if you were at FRA for the entire month. So there's no partial month calculation - you get the full monthly benefit amount for that month. This was a pleasant surprise when I got my first payment! The key is just making sure you don't apply for benefits before you actually reach your FRA date, even if it's in the same month. That's where people sometimes get tripped up and end up with a reduction.

Just wanted to share my recent experience since I literally just went through this exact situation last month! My FRA was 67 years and 4 months, which fell on November 12th. I was so worried about the timing and whether I'd accidentally file too early. What ended up happening: I reached my FRA on November 12th, November became my "month of entitlement" (got the full month's benefit even though I only qualified partway through), and I received my first payment in December covering November. Since my birthday is on the 12th, I got paid on the 3rd Wednesday of December. One thing that really helped me was creating a my Social Security account online at ssa.gov before I applied. You can see your exact FRA date down to the day, and it shows your estimated benefit amounts. When I finally applied (about 3 months before my FRA), the online application was pretty straightforward about setting the benefit start date. The most confusing part for me was understanding that "benefits paid for the previous month" thing, but once someone explained it like the comments above - that you're getting paid IN December FOR November - it all clicked. Hope this helps ease some of your worry about the timing!