I'm in a very similar situation - turning 62 in a few months and have been running a small retail business on the side while working full-time. The information in this thread has been incredibly helpful! One thing I wanted to add based on my research: make sure you understand the difference between the annual earnings test and the monthly earnings test. In your first year of retirement, Social Security can use a monthly test instead of the annual one, which might give you more flexibility. For 2025, that monthly limit would be around $1,770. This could be helpful if you're planning to retire mid-year and want to take larger distributions later in the year. Also, since you mentioned wanting to grow the business significantly, you might want to plan for how your "reasonable salary" will need to increase as the business grows. The IRS expects S-corp owner salaries to be reasonable compared to what you'd pay someone else to do the same work. As your nursery grows from $75k to $150k in revenue, you'll likely need to justify a higher salary to maintain compliance. Have you considered consulting with a financial planner who specializes in retirement transitions? They can help you model different scenarios and timing strategies to maximize your total retirement income over the long term.

Great thread everyone! As someone who recently went through the SSA application process at 62, I wanted to add a few practical tips that might help: 1. When you file for Social Security, make sure to inform them upfront about your business structure and how you plan to take income. Being transparent from the start helps avoid issues later. 2. Keep quarterly records of your salary vs distributions - SSA may ask for this documentation during their periodic reviews of your earnings. 3. Consider timing your S-corp election carefully. You can elect S-corp tax treatment for an existing LLC retroactively up to 2 months and 15 days after the beginning of the tax year, which gives you some flexibility in planning. 4. Don't forget about state taxes! Some states treat S-corp distributions differently, so factor that into your overall retirement income strategy. The nursery business is perfect for this approach since it's a legitimate operating business with real customers, inventory, and employees. Just make sure you're treating it like a real business in all respects - separate books, business insurance, proper invoicing, etc. The more professional your operation looks, the less likely you'll have any questions from SSA or IRS. Good luck with your retirement and growing the plant business! It sounds like you have a solid plan developing.

That unexpected payment of $764 labeled as "xxsupp sec/pay" could be several things: First, it might be a retroactive payment for a month where you were eligible but didn't receive your full benefits. This happens sometimes when SSA processes eligibility changes. Second, it could be an adjustment payment if SSA determined you were underpaid in previous months. Third, the amount ($764) was actually the standard federal SSI payment for an individual in 2022 before the 2023 increase to $914, so it might be related to a prior year adjustment. I strongly recommend calling SSA directly at 1-800-772-1213 or visiting your local office to get the exact explanation. Have your Social Security number and the payment details ready when you call. It's important to understand exactly what this payment is for, especially since unexpected payments sometimes need to be reported for other benefits programs you might receive. While extra money is nice, getting clarity will help you avoid any potential issues down the road if it was sent in error. Only SSA can give you the definitive answer about this specific payment.

I agree with Lena's advice to contact SSA directly for the definitive answer. That $764 amount is particularly interesting because it matches the 2022 federal SSI rate, which suggests this could be related to a prior year issue. A few additional thoughts on what this might be: - If you had any changes in living arrangements, income, or resources in 2022 that SSA is just now processing, they might owe you back payments - It could be related to a cost-of-living adjustment (COLA) calculation error that they're correcting - Sometimes there are delays in processing appeals or redeterminations that result in retroactive payments When you call SSA, ask specifically about: 1. What time period this payment covers 2. Whether it affects your ongoing monthly benefits 3. If you need to report it to any other agencies (like Medicaid or SNAP) Keep all documentation about this payment, including any letters or notices from SSA. Even if it seems like "found money," it's crucial to understand the reason behind it to avoid any complications with your benefits going forward. The 1-800-772-1213 number Lena mentioned is correct, and you can also check your my Social Security account online at ssa.gov for more payment details.

I REALLY wish the SSA would update their systems to allow us to change withholding percentages online instead of having to mail in paper forms every time. It's ridiculous that in 2025 we're still dealing with such outdated processes for something as simple as tax withholding. My Medicare withholding I can adjust online, but not SS??

As someone who went through this exact situation two years ago, I'd recommend starting with 12% and then monitoring your quarterly estimated tax payments. What really helped us was using the IRS withholding calculator online - it takes into account all your income sources and gives you a pretty accurate estimate. Just plug in your wife's annual SS benefits ($2,480 x 12 = $29,760), your part-time income, pension amounts, and any other income. The calculator will tell you exactly how much total tax you should have withheld for the year. Then you can figure out what percentage of her SS benefits needs to be withheld to hit that target. We found 12% worked perfectly for our situation, but everyone's different depending on their total income and deductions.

One thing that hasn't been mentioned: if your late wife's benefit at her FRA would have been HIGHER than your own benefit at your FRA, you might want to consider a different strategy! You could: 1. Take your OWN reduced retirement benefit now at 65 2. Then at your FRA, switch to the FULL survivor benefit This works if her benefit > your benefit. The calculations get complicated, so you really should discuss with an SSA representative who can run the numbers for your specific situation.

I'm so sorry for the loss of your wife, Jamal. I went through something similar when my husband passed away two years ago. Based on my experience and what others have shared here, I'd definitely encourage you to go ahead and apply for the survivor benefits now. Even though your benefits will be reduced due to your earnings, you'll still receive some money each month that can help with those medical bills. The key thing to remember is that this isn't really about "stopping" benefits - it's about how the system automatically adjusts based on your income. One practical tip: when you do get connected with SSA again (and I second the recommendation about trying Claimyr if you need to call), ask them to calculate exactly how much you'd receive monthly with your current income. That way you can budget accordingly and know what to expect. The peace of mind knowing you're getting some financial help while preserving your full retirement benefit for later is really valuable. I wish I had understood these options better when I was first navigating this process.

One important warning that nobody has mentioned: if any of his early lower-paying jobs were with employers not covered by Social Security (like some government or education positions), he might be subject to the Windfall Elimination Provision (WEP) which could actually REDUCE his Social Security benefit. This happens if he's receiving a pension from non-covered work. Similarly, if you're collecting a government pension from non-SS-covered work, your spousal benefits could be reduced by the Government Pension Offset (GPO) provision. Might be worth checking if these apply to your situation.

Just wanted to add one more consideration that might be helpful - since your husband is continuing to work past FRA, make sure you're both maximizing tax-advantaged savings opportunities! He can still contribute to a 401(k) if his employer offers one, and at his age he's eligible for catch-up contributions ($7,500 extra in 2024). This can help offset some of the higher tax burden from having both SS benefits and earned income. Also, if he has access to an HSA through work, that's triple tax-advantaged and can be a great supplement for healthcare costs in retirement. The combination of continued earnings replacing lower years in his SS calculation PLUS maximizing these tax-deferred savings can really optimize your overall retirement picture during these working years past FRA.