Easy
What year was Social Security enacted?
1935
How is the Social Security benefit amount for a retiree calculated?
The Social Security benefit amount for a retiree is calculated based on the worker’s Average Indexed Monthly Earnings (AIME) and applying a formula to determine the Primary Insurance Amount (PIA).
What percentage of their income do most elderly Social Security beneficiaries receive from Social Security?
Most elderly Social Security beneficiaries receive about 30% of their income from Social Security
How does a change in marital status affect Social Security benefits?
A change in marital status can affect Social Security benefits; for example, divorcees may be eligible for benefits based on their ex-spouse’s record if the marriage lasted 10 years or longer, and widow(er)s are eligible for survivor benefits
What is the Old-Age and Survivors Insurance (OASI) Trust Fund?
The Old-Age and Survivors Insurance (OASI) Trust Fund is a fund that pays retirement and survivors benefits under Social Security.
What are the three main types of benefits offered by Social Security?
Retirement Benefits, Disability Benefits, and Survivors’ Benefits
What are the consequences of early retirement on Social Security benefits?
The consequences of early retirement on Social Security benefits include a permanent reduction in benefits, calculated as a reduction of 5/9 of 1% for each month retired early, up to 36 months, and then 5/12 of 1% for additional months
How much is the standard monthly premium for Medicare Part B in 2022?
The standard monthly premium for Medicare Part B in 2022 is $170.10.
What are the tax implications of Social Security benefits based on income levels?
The tax implications of Social Security benefits depend on combined income levels; up to 85% of benefits may be taxable for individuals with higher income.
How many workers for each Social Security beneficiary are projected by 2035.
By 2035, there are projected to be 2.3 workers for each Social Security beneficiary, down from 2.7.
At what age does Medicare eligibility typically begin?
Medicare eligibility typically begins at age 65
Describe the eligibility criteria for receiving disability benefits under Social Security.
Eligibility criteria for receiving disability benefits under Social Security require having a severe physical or mental impairment that prevents substantial work
What is the Federal Insurance Contributions Act (FICA) tax rate for Social Security and Medicare?
The Federal Insurance Contributions Act (FICA) tax rate for Social Security and Medicare is 7.65% (6.2% for Social Security and 1.45% for Medicare), paid by both the employee and employer
How does earning additional income after beginning to receive Social Security retirement benefits affect the amount received?
Earning additional income after beginning to receive Social Security retirement benefits can reduce the benefit amount through the Retirement Earnings Test, if the beneficiary has not reached Full Retirement Age.
What is the maximum number of quarters a person can earn in a year for Social Security coverage, and how much earnings is required per quarter in 2022?
A person can earn a maximum of 4 quarters of coverage per year for Social Security.
What does FICA stand for, and what is its role in Social Security?
Federal Insurance Contributions Act, and it is responsible for funding Social Security and Medicare through payroll taxes.
How long is the "Look back period"?
60 months
How many quarters of coverage are required to be fully insured for Social Security benefits?
Fully insured status for Social Security benefits requires 40 quarters of coverage.
Illustrate how a person might use a Medicare Advantage plan differently from traditional Medicare.
A person might use a Medicare Advantage plan to receive additional benefits not covered by traditional Medicare, such as dental or vision care.
What is the purpose of the Medicare Part D program.
Medicare Part D provides insurance coverage for prescription drugs.
What is the general purpose of Supplemental Security Income (SSI)?
The general purpose of Supplemental Security Income (SSI) is to provide financial assistance to elderly, blind, or disabled individuals with low income and few assets.
Explain the Medicare Part B premium adjustment for high-income individuals.
The Medicare Part B premium adjustment for high-income individuals involves higher monthly premiums for those with incomes above certain thresholds, based on their Modified Adjusted Gross Income (MAGI).
What is the maximum family benefit limit as a percentage of the worker’s Primary Insurance Amount (PIA)?
The maximum family benefit limit is generally 175% of the worker’s Primary Insurance Amount (PIA).
Explain how the community spouse resource allowance works in Medicaid.
The community spouse resource allowance allows the non-nursing home spouse to retain a portion of the couple’s assets without affecting Medicaid eligibility for the spouse requiring long-term care
What line are Social Security benefits reported on in Form 1040.
6a and 6b