If you're still working, this is definitely the right move. Not only will your benefit amount increase by approximately 8% for each year you delay (between FRA and 70), but continuing to work might increase your Primary Insurance Amount by replacing lower-earning years in your calculation. Double benefit! Once you've handled the withdrawal paperwork, I'd recommend scheduling a benefits planning session with SSA when you're about 6 months from your actual retirement date. They can help you coordinate everything properly.

I work at a local SSA field office and see this situation fairly regularly. Here's what you need to know: 1. **Act fast** - You have 12 months from your entitlement date to withdraw, but don't wait 2. **Form SSA-521** - You can download it from ssa.gov or pick it up at any office 3. **Don't return money yet** - Wait for SSA's instructions on how they want repayment 4. **Visit in person if possible** - This ensures proper processing and you get a receipt The good news is that once your withdrawal is processed, your Medicare Part B enrollment will automatically terminate, and since you have employer coverage, you won't face any penalties when you eventually enroll. One important note: Make sure you understand that this is your ONE lifetime withdrawal opportunity. If you're not absolutely certain about your retirement timing, you might want to consider benefit suspension instead (available at Full Retirement Age), which preserves your withdrawal option for true emergencies. The process typically takes 4-6 weeks once all paperwork and repayment are complete.

Quick follow-up on tax implications: Up to 85% of Social Security benefits can become taxable when provisional income exceeds certain thresholds. Provisional income = Adjusted Gross Income + 50% of SS benefits + tax-exempt interest. For single filers: - Below $25,000: No tax on SS - $25,000-$34,000: Up to 50% taxable - Above $34,000: Up to 85% taxable For joint filers, thresholds are $32,000 and $44,000. So yes, selling large assets can create a double whammy - higher Medicare premiums AND more of their Social Security becoming taxable. Careful planning across multiple tax years is really important.

As someone new to this community, I just wanted to say thank you to everyone who explained IRMAA so clearly! I'm 63 and planning to retire in a few years, and I had no idea about these Medicare premium increases based on income from 2 years prior. This thread is a perfect example of why these discussions are so valuable. I was actually considering selling some stocks next year to pay off my mortgage before retirement, but now I realize I need to think about the timing much more carefully to avoid jumping into higher IRMAA brackets. Does anyone know if there are good resources or calculators to help plan these kinds of transactions? It sounds like spreading sales across multiple years could make a huge difference in avoiding these premium increases.

UPDATE: I called my company's payroll department first and they confirmed there might have been a reporting error on their end. They're going to check their records and get back to me. If they did make a mistake, they said they can submit a correction to the SSA directly. Fingers crossed this resolves it without me having to deal with the SSA phone maze!

Great job checking with your employer first! That's definitely the most efficient route. If they did make a reporting error, the W-2c correction should automatically update your SSA records within a few weeks. Just make sure to follow up and check your online statement in a month or two to confirm the correction went through. It's so much easier when the employer can handle it directly rather than you having to navigate the SSA phone system. Hope it gets resolved quickly for you!

If you want to be absolutely certain, you can request a formal determination from SSA. Ask specifically about how your OPERS lump sum distribution impacts the earnings test. Get the response in writing. This protects you if there's ever a question later, as SSA is bound by their formal determination even if it was incorrect (assuming you provided accurate information). For what it's worth, I've handled dozens of cases like yours, and pension distributions are NOT counted as earned income for the earnings test.

I went through something very similar with my state pension system (PERS) a few years ago. The key thing to understand is that OPERS distributions are NOT wages - they're pension payments from contributions you and your employer made during your working years. SSA is very clear that only wages and self-employment income count toward the earnings test. Since you're so close to FRA (congratulations on almost making it!), even in the unlikely event there was some confusion, you'd only be looking at a potential issue for about 3 weeks. But honestly, based on everything I've seen and experienced, you have nothing to worry about. One tip: when you do get through to SSA, ask them specifically about "pension distributions vs. wages for earnings test purposes" - using their exact terminology helps ensure you get the right answer. Keep records of your OPERS statement showing it was a pension distribution, not wages. You've got this! Just a few more weeks until that earnings test is behind you forever!

good luck getting anyone on the phone these days... i just go to the office in person even tho its a pain

As someone who went through a similar earnings limit situation last year, I want to reassure you that this is more common than you think and SSA has processes in place to handle it. The key is persistence and documentation. A few practical suggestions: Try calling the SSA number at exactly 8:00 AM when they open - I found Tuesday and Wednesday mornings tend to have slightly lower call volumes. If you still can't get through, consider sending a certified letter to your local office with your SSN, explanation of the situation, and copies of your pay stubs showing the increased earnings. You mentioned setting aside benefit payments - that's actually smart. While they likely won't demand everything back at once, having some funds available gives you peace of mind. Based on your $5,800 overage, expect roughly a $241/month reduction in future benefits rather than a complete stoppage. Most importantly, the fact that you're proactively trying to report this works heavily in your favor. SSA agents appreciate when beneficiaries are upfront about changes rather than waiting for them to discover it during their annual wage matching process. Keep that documentation log you're creating - it will be invaluable if any issues arise later!