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Test your recall > Retirement – 45 > Flashcards

Retirement – 45 Flashcards

1
Q

(45.1) OASDI stands for?

A

Old-age, survivor, and disability insurance

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2
Q

(45.2) Workers covered by OASDI

A
  • Federal employees hired since 1984
  • US Armed Forces
  • self-employed persons
  • employees of nonprofit organizations
  • hospital interns
  • domestic workers
  • farmers and agricultural workers
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3
Q

(45.2) Workers not covered by OASDI

A
  • Federal employees hired before 1984
  • Railroad employees
  • Family employment
  • ministers, members of religious orders, and Christian science practitioners, only if claiming an exemption
  • student nurses
  • newspaper delivery person’s under age 18
  • students working for a college or club
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4
Q

(45.5) Year born for full retirement age of 66

A

1943 to 1954

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5
Q

(45.5) Year born for full retirement age of 65

A

1937 or earlier

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6
Q

(45.5) Year born for full retirement age of 67

A

1960 or later

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7
Q

(45.1) Social Security tax on employee’s wages

A

6.2%

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8
Q

(45.1) Social Security tax on self-employment earnings

A

12.4%

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9
Q

(45.1) FICA taxes are imposed on a maximum of ___ in wages

A

$117,000 (2014)

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10
Q

(45.1) Medicare tax

A

1.45%

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10
Q

For one credit of Social Security benefits, a worker must earn how much wages or self-employment income?

A

$1200 (2014)

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12
Q

(45.3) For one credit of Social Security benefits, a worker must earn how much wages or self-employment income?

A

$1200 (2014)

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13
Q

(45.3) A worker could earn a maximum of how many social security credits per year?

A

4

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14
Q

(45.3) Workers born after 1929 are eligible for Social Security retirement benefits once they have earned how many credits?

A

40 credits or 10 years

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15
Q

(45.4) What does AIME stand for?

A

Average indexed monthly earnings

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16
Q

(45.4) AIME < $816

A

AIME x 90%

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17
Q

(45.4) $816 < AIME < $4,917

A

$734 + 32% of the amount over $816

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18
Q

(45.4) $4917 < AIME

A

$2,047 + 15% of the amount over $4,917

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19
Q

(45.4) What does the PIA stand for?

A

Primary insurance amount

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20
Q

(45.5) Retirement benefits under Social Security can begin as early as age ___ no matter what a worker’s normal retirement age is.

A

62

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21
Q

(45.5) Social Security retirement benefits are reduced by ___ of a percent for every month that a WORKER begins receiving benefits before normal retirement age for the first ___ months prior to retirement.

A

5/9

36

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22
Q

(45.5) Social Security retirement benefits: for a spouse NOT caring for a child, who elects early retirement, the reduction is ___ of a percent for each of the first ___ months. The benefits are reduced by ___ of a percent for every month in excess of ___ months a spouse begins receiving benefits before normal retirement age.

A
  • 25/36
  • 36
  • 5/12
  • 36
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23
Q

(45.6) A client is not eligible for Social Security disability benefits if they are able to earn ___ per month on average in 2014.

A

$1070

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24
Q

(45.7) It disability begins before age 24, ___ Social Security credits earned during the three years prior to becoming disabled are needed.

A

Six

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25
Q

(45.7) If disability begins between ages 24 and 30, social security credits for half the time between age 21 and the onset of disability are needed (___ credits per year between age 21 and the age at which disability begins).

A

Two

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26
Q

(45.7) At age 31 and above: Of the Social Security credits needed, ___ must be learned in the last ___ years prior to the occurrence of the disability.

A

20

10

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27
Q

(45.7) A disabled widow or widower who is ___ or older will receive Social Security benefits on the deceased spouse’s record if the disability occurs before the spouse’s death or within ___ years after the spouse’s death.

A

50

7

28
Q

(45.8) At the death of an insured worker, a lump-sum Social Security death benefit of ___ is payable to….

A

$255

29
Q

(45.9) Widows and widowers of Social Security participants may begin benefits at age?

A

60 (50 if disabled)

30
Q

(45.9) A widow or widower who remarries AFTER age ___ is not disqualified from obtaining benefits based on the deceased spouse’s earnings.

A

60

30
Q

Children eligible for Social Security benefits

A
  • Under age 18
  • Under 19 and a full-time high school student
  • Age 18 or older and disabled before age 22
32
Q

(45.10) Children eligible for Social Security benefits

A
  • Under age 18
  • Under 19 and a full-time high school student
  • Age 18 or older and disabled before age 22
33
Q

(45.10) Social Security benefits: Retirement and disability benefits for nonworking spouse at own full retirement age

A

50% of PIA

34
Q

(45.10) Social Security benefits: Retirement and disability benefits for nonworking spouse at age 62

A

35% at PIA (50% reduced 25/36 of 1% for the first 36 month early, 5/12 of 1% for each additional month early)

35
Q

(45.10) Social Security benefits: Retirement and disability benefits for eligible child

A

50% PIA

36
Q

(45.10) Social Security benefits: Retirement and disability benefits for spouse caring for a child under age 16

A

50% of PIA

37
Q

(45.10) Social Security benefits: Survivorship benefits for nonworking spouse at own full retirement age

A

100% of PIA

38
Q

(45.10) Social Security benefits: Survivorship benefits for nonworking spouse at age 62

A

81% of PIA

39
Q

(45.10) Social Security benefits: Survivorship benefits for nonworking spouse at age 60

A

71.5% of PIA

40
Q

(45.10) Social Security benefits: Survivorship benefits for eligible child

A

75% PIA

41
Q

(45.10) Social Security benefits: Survivorship benefits for spouse caring for a child under age 16

A

75% of PIA

42
Q

(45.10) Social Security benefits: The maximum deduction for a surviving spouse at age 60?

A

28.5%

42
Q

Individuals under full retirement age, benefits will be reduced by ___ for every ___ by which earned income exceeds ___

A

$1
$2
$15,480

44
Q

(45.11) Individuals under full retirement age, benefits will be reduced by ___ for every ___ by which earned income exceeds ___.

A

$1
$2
$15,480

44
Q

Up to ___ of the benefits received under Social Security are subject to tax

A

85%

46
Q

(45.13) Up to ___ of the benefits received under Social Security are subject to tax

A

85%

47
Q

(45.13) Taxation of Social Security benefits

A

AGI + tax exempt interest (including savings bonds) and foreign income not included in AGI = modified AGI

Modified AGI +1/2 Social Security benefits = combined income

48
Q

(45.13) If combined income is less than ___ for married filing jointly (___ for single), none of the Social Security benefits are taxable.

A

$32,000 for married filing jointly

$25,000 for single

49
Q

(45.13) Taxation the Social Security benefits: For those taxpayers who are married and filing jointly with ___ in combined income (___ for singles), the lesser of one half of the Social Security benefits or the amount by which combined income exceeds lower threshold is taxable.

A

$32,000-$44,000 for married filing jointly

$25,000-$34,000 for singles

49
Q

Taxation of Social Security benefits: in general, if clients have combined income in excess of ___, I will pay tax on 85% of their benefits.

A

$55,000

51
Q

(45.14) Taxation of Social Security benefits: In general, if clients have combined income in excess of ___, they will pay tax on 85% of their benefits.

A

$55,000

51
Q

(45.3) Name some examples of earnings not eligible for Social Security credits.

A

Net earnings from:
S corporations
Rental income
Wages paid to the children of a sole proprietor who are under 18

52
Q

(45.14) Taxation of Social Security benefits: The threshold for the taxability of Social Security benefits is ___ for those married filing separately.

A

Zero

53
Q

(45.3) For Social Security retirement benefits, those born before___need one less credit for each year they were born before___.

A

1929

1929

54
Q

(45.3) Over how many years is the Social Security benefits calculated?

A

The highest 35 years of earnings

55
Q

(45.5) Full Retirement Age: 1938 - 1942

A

65 plus 2 months for each year born after 1937

56
Q

(45.5) Full Retirement Age: 1955 - 1959

A

66 plus 2 months for each year born after 1954

57
Q

(45.6) SS Disability Benefits: Benefits are only available if a client is unable to do any work for which he or she is suited and the disability will last more than __.

A

one year

58
Q

(45.7) The maximum amount of benefit from Social Security and worker’s compensation benefits combined is __% of a client’s average earnings.

A

80%

59
Q

(45.9) Marriage BEFORE age ___ is disqualified from obtaining benefits based on the deceased spouse’s earnings as long as the marriage lasts.

A

60

60
Q

(45.11) The ___ provision of Social Security applies to those who have earned a pension in a job where no Social Security taxes were paid (such as those under the Civil Service Retirement System and some state and local government employees), but have worked in other jobs long enough to qualify for Social Security retirement or disability benefits.

A

Windfall Elimination Provision (WEP)

61
Q

(45.11) The reduction in Social Security benefits for the WEP worker will not be more than __ of the pension that is based on earnings for which no Social Security taxes were paid.

A

1/2

62
Q

(45.11) The Windfall Elimination Provision (WEP) does not apply to federal workers hired after ___, or to those with a pension based only on __ employment.

A
  • 1983

- railroad

63
Q

(45.11) The Windfall Elimination Provision (WEP): Those who paid Social Security taxes on at least __ years of “substantial ($21,075)”earnings will have NO reduction.

A

30

64
Q

(45.11) Under the Government Pension Offset (GPO) provision, Social Security benefits are reduced by ___ of the government pension amount received by the spouse, widow, or widower who earned the government pension.

A

2/3

65
Q

(45.13) Taxation of Social Security benefits: If combined income is greater than $44,000 for joint returns ($34,000 for singles), take __% of the combined income over these thresholds and add the smaller of $___ on joint returns ($___ for singles), or ___ the Social Security benefits.

A
  • 85%
  • $6,000
  • $4,500
  • one-half

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