This is such a valuable discussion! As someone who's been navigating Social Security planning for my own family, I wanted to add a perspective that might help with your decision-making process. One thing I learned from my financial advisor is to think about this in terms of "Social Security arbitrage." If you're healthy and expect to live well into your 80s or beyond, the recalculation benefit that Atticus mentioned becomes really important. Essentially, you're getting an 8% annual increase on your benefit amount for each year you delay past your full retirement age (until age 70), plus the credit for any withheld benefits. But here's the practical reality check: if you need the income NOW to maintain your quality of life, then the math about future adjustments doesn't matter as much. I've seen too many people stress themselves out trying to optimize every dollar when they should be focused on having financial security and peace of mind today. For your specific situation with the missing earnings years, that's absolutely your first priority. Those 3 years could be worth thousands of dollars annually for the rest of your life. Everything else is just fine-tuning compared to getting your benefit calculation correct. My suggestion would be to fix the earnings record first, then reassess your work situation with the correct benefit amount in hand. You might find the decision becomes much clearer once you know your actual numbers!

This thread has been incredibly helpful! I'm new to this community and in a similar situation at 64. One aspect I haven't seen mentioned yet is the impact of Medicare premiums if you're already enrolled or planning to enroll soon. When you're receiving Social Security benefits, Medicare Part B premiums are automatically deducted from your monthly payment. But if your benefits are withheld due to excess earnings, you'll need to pay those premiums directly to Medicare, which can be a cash flow surprise that some people don't anticipate. Also, for those considering the "work now, get credited later" approach - don't forget that Medicare premiums increase each year, so even when your benefits are recalculated upward at FRA, a portion of that increase will be offset by higher Medicare costs. Just another factor to consider in the overall equation! The earnings record correction definitely sounds like the highest priority item based on everyone's experiences shared here.

Just wanted to share that I went through something very similar with my father-in-law about two years ago. He was also self-employed (electrician) and hadn't filed taxes for several years after my mother-in-law passed. The Social Security Administration was actually pretty understanding once we explained the situation - they worked with us to get everything sorted out. One thing that really helped was getting a tax advocate involved through the IRS Taxpayer Advocate Service (it's free). They helped expedite the filing process and even negotiated a payment plan for the back taxes he owed. The advocate also coordinated with SSA to make sure his earnings record was updated properly once the returns were filed. For Medicare, we couldn't avoid the penalties, but we did find out he qualified for some assistance programs that helped offset the costs. The key was getting everything filed and then being proactive about applying for every program he might be eligible for. It took about 6 months total to get everything straightened out, but he did receive retroactive Social Security payments once it was all processed. Your brother-in-law is lucky to have someone like you looking out for him during this difficult time. Don't give up - there's definitely light at the end of this tunnel!

This entire thread has been such a goldmine of information! As someone who's currently helping my elderly father navigate Medicare enrollment, I'm bookmarking this for reference. The detail about Schedule SE and self-employment earnings not being automatically reported to SSA was eye-opening - I had no idea that was different from W-2 wages. One thing I wanted to add based on our recent experience: when your brother-in-law does apply for Social Security, he should ask specifically about filing a "protective filing date." This can help establish an earlier application date while he's getting all his paperwork sorted out, which could be important for those retroactive payments several people mentioned. Also, if he's feeling overwhelmed by all of this (which would be totally understandable), most Social Security offices have staff who can help walk him through the application process step by step. Sometimes having someone there in person to explain everything can make a huge difference when you're dealing with multiple complex issues at once. Really hoping everything works out for him - and you're an amazing brother-in-law for helping him navigate this!

As someone brand new to this community and Social Security processes, this entire thread has been both incredibly educational and genuinely frightening! I had absolutely no idea that mail getting lost at SSA was such a pervasive problem. Reading everyone's experiences with disappeared documents and the elaborate backup strategies you've all developed really highlights how broken the system is. But I'm so grateful for all the practical wisdom shared here - the fax confirmation method, certified mail protocols, asking for reference numbers, and even that Claimyr service are all strategies I never would have known about. @dea3190a90ca I'm so relieved you got confirmation through your local office with just 17 days left on your deadline! Your multi-pronged approach of fax + certified mail backup seems like the gold standard for dealing with these agencies. This community's collective knowledge about navigating SSA's limitations is invaluable for newcomers like me who are just starting to understand how complex these processes can be.

As a newcomer to this community, I'm absolutely shocked by how many people have experienced lost mail with SSA! Reading through everyone's stories has been both enlightening and terrifying - I had no idea this was such a widespread problem. The strategies everyone has shared are incredibly valuable though. @dea3190a90ca I'm so glad you were able to get confirmation through fax with just 17 days left! That's cutting it really close but it sounds like you handled it perfectly with the multi-pronged approach. The fax confirmation for immediate peace of mind plus certified mail backup seems like the ideal strategy. I'm definitely taking notes on all these tips - asking for reference numbers, using certified mail for everything important, and knowing that local offices can accept fax submissions for urgent deadlines. It's frustrating that we need all these workarounds in 2025, but this community knowledge is invaluable for those of us just learning to navigate these systems!

As someone who's been navigating Social Security for a few years now, I can confirm what others have said - your financial advisor is absolutely correct! 401k withdrawals do NOT count toward the Social Security earnings limit. I was in a similar boat when I started collecting at 62, taking about $30k annually from my 401k while receiving SS benefits. Never had any issues with benefit reductions because of those withdrawals. The key thing to remember is that the earnings test only looks at "earned income" - wages, salary, self-employment income, etc. Your 401k money was already earned years ago when you were working and contributing to it. Now you're just accessing money you previously saved. Your brother might be thinking of the taxation rules for Social Security benefits, which IS affected by total income including 401k withdrawals. That's a completely separate calculation from the earnings limit though. Two different rules for two different purposes! You should be able to retire comfortably at 63 with your SS and 401k plan without worrying about the earnings limit affecting your benefits.

I'm glad I found this thread because I was having the same exact confusion! I'm 61 and planning to file for Social Security next year at 62, and I've been worried about how my 401k withdrawals would affect my benefits. Reading through everyone's responses has been really educational. It sounds like the consensus is clear that 401k distributions don't count toward the earnings limit, which is a huge relief. I was actually considering delaying my Social Security filing because I thought the 401k money would push me over the limit. One thing I'm still a bit unclear on though - if I do occasional freelance work (I'm a graphic designer), would that count as self-employment income toward the earnings limit even if it's just a few small projects here and there? I'm thinking maybe $3,000-4,000 total per year, nothing major, but I want to make sure I stay under the limit. Also, has anyone here actually had their benefits reduced due to the earnings test? I'd be curious to hear about the process of how Social Security calculates and applies the reduction if it happens.

I'm in a similar situation but a few months behind you - turning FRA in June. Reading through all these responses has been incredibly helpful! It sounds like the consensus is that calling SSA with your W-2 or tax documents is the way to go if you want an immediate calculation. I'm curious though - for those who have successfully gotten through to SSA by phone, what time of day did you call? And did you have better luck calling on certain days of the week? I want to be strategic about when I make my attempts since it sounds like getting through can be challenging. Also, has anyone tried scheduling an in-person appointment at their local SSA office instead of calling? Wondering if that might be more reliable than playing phone tag.

I just went through this process myself a few months ago and wanted to share another option that worked well for me. Instead of waiting months for 2024 earnings to appear or struggling to get through on the phone, I created a my Social Security account online and used their benefit calculator tool. While it doesn't include your most recent year automatically, you can manually input your 2024 earnings estimate to see how it would affect your benefit amount. It's not as precise as having SSA do the official calculation, but it gave me a pretty good ballpark figure to work with. The calculator lets you compare different scenarios - like filing now versus waiting - which really helped me visualize the trade-offs. Plus you can access it 24/7 without dealing with hold times. Just make sure you have your 2024 W-2 or final pay stub handy when you run the numbers. Worth trying this approach first before spending hours on the phone!