Module II Practice Test Flashcards
Okay, here are flashcards with multiple-choice answers, designed for active recall.
Flashcard 1
Front: What is the maximum reduction of US Social Security benefits due to foreign pension if Carla and Pablo are from Spain?
a) $613 reduction due to WEP
b) 2/3 of the foreign pension due to GPO
c) No reduction
d) Only one benefit can be collected
Back: c) No reduction
Flashcard 2
Front: Why meet a disability attorney first before applying for SSDI?
a) Attorney guarantees approval.
b) Attorneys work for the SSA.
c) Consultation gauges approval chances.
d) Workers should file the application first.
Back: c) Consultation gauges approval chances.
Flashcard 3
Front: By what age must an adult child be disabled to qualify for DAC benefits?
a) 25
b) 22
c) 18
d) At birth only
Back: b) 22
Flashcard 4
Front: What does IRMAA stand for?
a) Income-Recommended Mandatory Amount Adjusted
b) Income-Related Mandatory Amount Adjusted
c) Income-Recommended Monthly Adjustment Amount
d) Income-Related Monthly Adjustment Amount
Flashcard 5
Front: Who is eligible for a spousal child in-care benefit?
a) Spouse caring for a 20-year-old disabled adult.
b) Parents, both 45, caring for a 14-year-old.
c) Spouse caring for a 17-year-old.
d) Spouse caring for a 24-year-old who just became disabled.
Back: a) Spouse caring for a 20-year-old disabled adult.
Flashcard 6
Front: How do Medigap plans work?
a) Part of original Medicare, available to all.
b) All different, wide array of benefits.
c) Standardized, include all Medicare parts.
d) Fee-for-service insurance from major companies.
Back: d) Fee-for-service insurance from major companies.
Flashcard 7
Front: Medicare Part B…
a) Pays for prescription drugs.
b) Pays for skilled nursing.
c) Pays for medical services.
d) For disabled under 60.
Back: c) Pays for medical services.
Flashcard 8
Front: How many states tax Social Security benefits?
a) All states
b) Less than twelve c) Twenty-five
d) No states
Back: b) Less than twelve
Flashcard 9
Front: David worked 40 years with the city (with a pension), and paid into Social Security for the last 35. How is his PIA adjusted?
a) Based on “substantial earnings”.
b) No effect from the pension.
c) Decreased.
d) Not enough information.
Back: b) No effect from the pension.
Flashcard 10
Front: Which is NOT a Medicare enrollment period?
a) Initial
b) Special
c) General
d) Optional
Back: d) Optional
Flashcard 11
Front: Kasper has $6,120 AIME, a non-covered pension, and 27 years of earnings. What is his WEP-PIA (2025)?
a) $2,486
b) $2,522
c) $2,438
d) $2,669
Back: c) $2,438
Front: Sarah has $900 non-covered pension and is eligible for $1,000 spousal benefit. How much does she receive under the GPO?
a) $400
b) $667
c) $600
d) She will not receive anything.
Back: d) She will not receive anything.
Flashcard 13
Front: For retiree couples with Spouse A receiving a non-covered pension which of the following statements is false?
a) The couple’s Social Security income planning can be complicated due to the WEP and GPO rules
b) Spouse B without the pension will not be subject to the GPO
c) Spouse A with the pension will not be subject to the GPO
d) The WEP applies to the retirement benefit of the spouse with the pension
Back: c) Spouse A with the pension will not be subject to the GPO
Flashcard 14
Front: Is a spousal benefit ever, even if indirectly, modified by the WEP?
a) No, only the GPO modifies spousal benefits
b) Yes, the WEP applies to spousal benefits
c) No, the spousal benefit is based on the amount before the WEP reduction
d) Yes, when the spousal benefit is based on the other spouse’s lower WEP-PIA
Back: d) Yes, when the spousal benefit is based on the other spouse’s lower WEP-PIA
Flashcard 15
Front: Which of the following is not true about applying for Medicare?
a) Some retirees are automatically enrolled in the Medicare program and others need to apply
b) Medicare cards include the retiree’s Medicare claim number and show if they are eligible for Part A, Part B, or both c) The only opportunity to enroll in Medicare is the seven-month period before, during, and after a retiree’s 65th birthday, or the first full month that employment or health insurance has ended
d) Anyone with ALS, Lou Gehrig’s disease, will automatically be enrolled in Medicare when disability benefits begin
Back: c) The only opportunity to enroll in Medicare is the seven-month period before, during, and after a retiree’s 65th birthday, or the first full month that employment or health insurance has ended
Flashcard 16
Front: Which of the following best describes why taxation of Social Security income is sometimes referred to as a stealth tax?
a) It is an official name in the IRS code for the Social Security income taxation formula
b) The Social Security combined income threshold levels are adjusted every year and are indexed for wage inflation
c) The tax comes as a surprise for many retirees
d) For retirees in the highest income brackets, 95% of their Social Security income can be taxed
Back: c) The tax comes as a surprise for many retirees
Flashcard 17
Front: How many QCs does a worker who became disabled at 44 years old need to qualify for SSDI?
a) 20
b) 22
c) 38
d) 40
Back: b) 22
Flashcard 18
Front: A married couple has an AGI of $80,000, Social Security income of $48,000, and no tax- exempt interest. Which of the following is true?
a) They will most likely pay tax on up to 85% of their Social Security income
b) They shouldn’t be concerned about taxes on their Social Security since there’s not much they can do about it
c) Their Social Security income will be taxed at 85%
d) Their combined income is $128,000
Back: a) They will most likely pay tax on up to 85% of their Social Security income
Flashcard 19
Front: Which of the below is used to determine how much of Social Security benefits are subject to taxation?
a) Highest marginal tax bracket from the previous year
b) Total amount of family Social Security benefits
c) Net worth
d) Combined income
Back: d) Combined income
Flashcard 20
Front: Which of the below is a condition which likely would not qualify a person for SSDI?
a) Severe psychiatric disorders
b) Loss a limb
c) Untreatable cancer
d) Back injury with arthritis
Back: d) Back injury with arthritis
