One more important detail - the earnings test only counts wages or self-employment income. It doesn't count investment income, pension payments, annuities, capital gains, or government benefits. So if any of your income comes from these sources, they won't count toward either the monthly or annual limits. And remember that the earnings reduction isn't a permanent loss. Once you reach your Full Retirement Age, your benefit will be recalculated to credit back the months when benefits were withheld.

Just wanted to add my experience as someone who went through this exact decision last year. I was 64 and had a similar situation with irregular income from freelance work. I ended up starting benefits in March after earning about $20k in Jan/Feb, then stayed under the monthly limit the rest of the year. The key thing I learned is to keep detailed records of your monthly earnings - not just annual totals. SSA will want to see month-by-month breakdowns if there's any question about whether you exceeded the monthly limits. I used a simple spreadsheet tracking gross income by month which made everything much clearer when I had to provide documentation. Also, if you're doing contract work, make sure you understand how they count the income. It's when you EARN it, not when you get paid. So if you do work in January but don't get paid until March, that income counts toward January for the earnings test purposes.

One more important point about your Roth conversion strategy: remember that the SECURE 2.0 Act changed some RMD rules, which might affect your long-term planning. Starting in 2024, RMDs now begin at age 73 (up from 72), and in 2033, they'll start at age 75. This gives you more flexibility for Roth conversions before mandatory withdrawals kick in from your traditional accounts.

just to clarify I said 2023/2024 earlier but I mean't 2022/2023... I have covid brain fog today lol

Yes, I worked enough quarters for my own benefits, but my own benefit amount would be less than what I get as a spouse (I was a teacher for many years in a state that didn't participate in Social Security). Maybe they found something in my work history that changes the calculation? I'll definitely call now that I understand better what this might be about.

As someone who's dealt with SSA correspondence before, I'd suggest calling early in the morning (right when they open at 8 AM) to minimize wait times. Also, have all your documents ready - your Social Security card, marriage certificate, and any recent benefit statements. Sometimes these reviews are triggered automatically by their system when you reach certain age milestones or when they're doing routine data matching with other agencies. Since you mentioned you were a teacher in a state that didn't participate in Social Security, they might be cross-referencing with your state teacher retirement system to ensure there are no dual benefit issues or to see if recent changes in federal law affect your eligibility. Don't stress too much - in most cases these letters result in either no change or an increase in benefits!

THE SSA NEVER GIVES YOU BACK YOUR MONEY WITHOUT A FIGHT!!!! I had the EXACT same situation and they claimed they never got my income information from the IRS even though I filed my taxes on time!!!! Had to go to my local office THREE TIMES to get it straightened out and they acted like they were doing me a favor giving me MY OWN MONEY back!!!! The whole system is designed to STEAL from seniors!!!!!

I'm going through something similar right now! My situation is a bit different though - I estimated $20,000 for 2024 but ended up earning closer to $17,500 because I had to reduce my hours for health reasons. They've been withholding about $200 per month from my benefits. From what I'm reading here, it sounds like the automatic adjustment should happen, but there might be delays or issues. I'm definitely going to check my online SSA account regularly starting this summer to see if there's any indication of an adjustment coming. @StarStrider - I hope you get your $360 back soon! It's frustrating when you're already dealing with reduced income and then have to worry about whether the government systems are working properly. Keep us posted on how it goes!

Has anyone else noticed how the rules for Social Security are DELIBERATELY complicated?? I swear they make it confusing on purpose so people don't claim everything they're entitled to. My neighbor worked for SSA for 30 years and even she says most of their own employees don't understand all the rules. The whole system needs to be simplified!

I'm also navigating a similar situation with my spouse, though we're a bit younger. One thing I learned from speaking with a local AARP volunteer tax advisor is that you might want to consider having your husband create a my Social Security account online if he hasn't already. It will show his exact benefit estimates at different claiming ages, which can help you make more informed decisions about timing. Also, regarding the survivor benefits - I believe you'd need to apply for those separately if something happens to your husband. They don't automatically switch you over, so it's important to contact SSA as soon as possible after a spouse's death to avoid any delays in receiving the higher benefit amount. Given all the conflicting information people get from different SSA representatives, you might also want to document any advice you receive in writing when you do speak with them. Some people request email confirmations or follow up with written requests to have their conversations documented in their file.