Let me clear up a few points about the retirement earnings test: 1. For anyone under FRA for the entire year 2025, the limit is $23,400 2. In the year you reach FRA, the limit is $62,640 ONLY for the months BEFORE the month you reach FRA 3. Starting the month you reach FRA, there is NO limit on earnings Regarding withholding: SSA estimates your earnings for the year. If you expect to exceed the limit, they'll withhold benefits proactively. Otherwise, they'll reconcile after the fact when tax data is available, which can result in unexpected overpayments. And yes, absolutely confirmed that 401(k) distributions, regardless of whether they're from interest, earnings, or principal, do NOT count toward the earnings test limit.

Just wanted to add my experience as someone who went through this exact situation two years ago. I filed for SS at 65 while still doing freelance work, and I can confirm that 401k distributions absolutely do NOT count toward the earnings limit - only your actual work income does. One tip I learned the hard way: keep really good records of your consulting income throughout the year. I use a simple spreadsheet to track each payment and running total so I know exactly where I stand. When I got close to the limit in November, I was able to turn down a project to stay under rather than deal with the benefit withholding. Also, don't forget that if you're doing consulting work, you'll likely need to pay quarterly estimated taxes on that income since there's no employer withholding. Something to factor into your planning!

My wife is also July 1958 and we just went through this whole thing with planning her retirement. Her FRA is definitely 66+8 months, so March 2025 is right. But remember that Social Security pays a month behind, so her first FULL payment at FRA would be in April 2025 (for March).

Everyone here is focusing just on your FRA date, but have you considered whether waiting until your FRA is actually the best strategy for you? Depending on your health, family longevity, current savings, and whether you're still working, filing before or after FRA might be better. I initially planned to file at my FRA (66+4mo), but after running the numbers, I decided to wait until 70 for the maximum benefit since I'm still working part-time and don't need the income yet. Just something to think about beyond just confirming your correct FRA date.

did u know that if u work for a state that doesnt pay into SS (like some do and some dont) it can really mess up ur benefits? my cousin lost like half his SS because of something called windfall elimination provision. just mentioning in case ur state job is one of those???

I'm just starting to think about my own retirement planning and this thread has been incredibly eye-opening! I had no idea about IRMAA or how complex the timing could be with Social Security and Medicare. @Chloe Mitchell - it sounds like you're being really smart to pause and recalculate everything before moving forward. I'm curious though - when you do withdraw your application with form SSA-521, do you have to wait any specific amount of time before you can reapply? Or can you turn around and file a new application right away for a different start date? Also, for everyone who's mentioned financial advisors - are there any specific certifications or specializations I should look for when finding someone who really understands Social Security and government pensions? I work for a local municipality and want to make sure I don't make the same mistakes when my time comes. Thanks to everyone for sharing their experiences - this is exactly the kind of real-world advice you can't get from the official websites!

@original poster - did you ever get this resolved? I'm curious what you decided to do since I'm facing a similar decision next year. My financial advisor actually suggested the same strategy you're considering.

Congratulations on making your decision! It sounds like you did your homework and considered all the important factors. Since you're moving forward with filing at 62, here are a couple of practical tips from someone who went through the process recently: 1. File online if possible - it's much faster than trying to get through on the phone 2. Keep good records of your investment strategy and returns for tax purposes 3. Consider setting up automatic investing for your SS payments so you stay disciplined with the plan One last thing - you mentioned being worried about Medicare premiums earlier. Just FYI, your Social Security benefit amount doesn't directly affect Medicare Part B premiums, but if your investment income pushes your total income above certain thresholds, you could face IRMAA surcharges on Medicare premiums later. Something to keep in mind as you manage those investments! Best of luck with your strategy - hope it works out well for you!