Retirement

Question 1

Substantially equal periodic payments

Recapture provision

Answer 1

If the amount is modified before the later of:
1. End of five year period, or
2. Attainment of age 59 1/2
Then the 10% penalty tax that would have been imposed, plus interest, is incurred in the year of modification

Question 2

Technically, the spouse controls the beneficiary on what type of account?

Answer 2

Pension plan

NOT IRA

Question 3

If someone retires 36 months before FRA, what is the effect on their monthly benefit?

Answer 3

Reduced by 20%

Question 4

What situations can cause social security retirement benefits to be reduced?

Answer 4

1. Take benefits before FRA

2. Work and make certain amount before FRA

Question 5

Working after taking social security benefits (before FRA)

Answer 5

Benefits reduced by:

$1 for every $2 earned above $16,920

In the year you reach FRA:
$1 for every $3 earned above $44,880

Question 6

Provisional income

Answer 6

Income from all sources, including:

Wages
Retirement plan distributions
Investment income (INCLUDING municipal bonds)
1/2 social security benefits

Question 7

Social security benefits for spouse and divorced spouse

Answer 7

Divorced spouse if married for more than 10 years and is not remarried.

Retirement or disability:

• Spouse is age 62 or over, or
• has a child in care under 16 or 16+ and disabled

Deceased:

• Spouse is age 60 or over, or
• caring for child of deceased under age 16 or disabled before 22

Question 8

Surviving dependent eligibility and benefits under Social Security

Answer 8

Unmarried and:

• Under 19 and a elementary or secondary student, or
• 18 or over with disability which began before 22

Question 9

Social Security death benefit

Answer 9

$255