OASDI Flash Cards

Question 1

OASDI

Answer 1

Old Age, Survivor, Disability Insurance

Question 2

OASDI Eligibility

Answer 2

Fully insured: 40 quarters of coverage

Currently insured: 6 quarters

Question 3

Not covered by OASDI

Answer 3

• Railroad workers
• Student nurses / workers
• Federal employees employed since 1984
• Some Americans working abroad
• Tribal Council member
• Ministers / Christian Scientists can opt out
• Child under 18 working for parent

Question 4

OASDI - ‘Provisional Income’

Answer 4

AGI + Tax-exempt interest + 1/2 Social Security Income (Called MAGI in text)

Question 5

OASDI - Taxation of Benefits

Answer 5

If provisional income + 1/2 SS is
> $25k MAGI (Single) or >$32k MAGI (Married/Joint), 50% of benefits are included.
> $34k MAGI (Single) or $44k (Married/Joint), 85% included
• MAGI includes muni interest!

Question 6

OASDI - Spouse of retiree / disabled

Answer 6

Qualified for benefits if:
62+ gets 35% of working spouse
64+ gets 25% of working spouse
67+ of caring for child under 16 gets 50% of working spouse
Caring for dependent 16 y/o or younger
Caring for 16 y/o+ and disabled
File & Suspend – Worker files for benefits, then suspends, allowing spouse to start collecting

Question 7

OASDI - Spouse of Deceased

Answer 7

Entitled to benefits if:
• 60 y/o+
• Caring for child < 16 y/o or disabled before 22 y/o
• If divorced, must have been married 10+ years and not remarried OR 62+ y/o and divorced for 2 years

Question 8

OASDI - Child/Dependent of Deceased

Answer 8

Gets benefits if:
< 19 y/o AND in elementary or high school of < 18 if not
OR
18 y/o + AND disabled before 22 y/o

Question 9

OASDI - Working After Retirement

Answer 9

If born 1/2/43 - 1/1/55, keep all benefits
If less than NRA & earning
>$15,480, all above 15,480 reduces 50%
>$41,400, all above 41,400 reduces 33%

Question 10

OASDI - Disability Benefits

Answer 10

Worker entitled to disability benefits if:
• Under 65 y/o
• Disabled 12 mos, expected to be disabled 12 mos+, or disability will cause death
• Filed and waited 5 mos.
• 80% of pre-disability pay
• Any Occupation
• 20 credits must have been earned 10 years prior

Question 11

OASDI - Taking SS before 67

Answer 11

If worker retires before Normal Retirement Age (NRA), benefits are reduced 5/9% of 1% for each of the first 36 months while under NRA
5/9 of 1% = 1/180
Every year after NRA = approx gain of 8%/year
-20% per year for 3 years
-25% per year for 4 years
-30% per year for 5 years