A probabilistic PAPR reduction method using binary masks is proposed for OFDM systems. The binary masks are used to generate multiple candidates. The candidate with the lowest PAPR is selected for transmission. In the presence of a non-linear amplifier (soft limiter), since the PAPR is reduced, the clipping distortion power is all the more reduced as the number of candidates increases. Taking into account both distortion and channel noise, we derive the analytical total noise power to estimate the log-likelihood ratio (LLR), which is then used to enhance the decoding performance. We derive a minimum achievable Eb/N0 and a decoding threshold for LDPC codes in the presence of the soft limiter. Simulation results show that our LLR estimation improves the error performance, and multiple candidate system lowers the error rate.