Retirement Savings and Income Planning Flashcards
What benefits are provided by Social Security?
- Retirement income
- Survivor benefits to spouse and dependent children
- Disability benefits
How is Social Security funded?
with payroll taxes (FICA)
If you earn $1300 in any quarter you get credit for the whole quarter
Quarter of coverage
To be fully insured under Social Security, you must have earned how many quarters?
40
What does it mean to be currently insured under Social Security?
you have earned 6 credits in the previous 13 quarters
Those claiming Social Security from 62 to the FRA year will see their benefits reduced ___ for every ___ of earnings above $18,240.
$1; $2
Those claiming Social Security in the FRA year will see their benefits reduced ___ for every ___ of earnings above $48,600.
$1; $3
How is provisional income calculated for Social Security?
Gross Income + non-taxable interest income + one-half of OASDI benefits
At what levels will 0% of Social Security benefits be taxable?
Less than $25,000 (single)
Less than $32,000 (MFJ)
At what levels will 50% of Social Security benefits be taxable?
$25,000 to $34,000 (single)
$32,000 to $44,000 (MFJ)
At what levels will 85% of Social Security income be taxable?
Greater than $34,000 (single)
Greater than $44,000 (MFJ)
When does a spouse become eligible for spousal benefits?
Age 62 or any age if caring for a child under 16 or disabled
How much of the covered spouse’s primary insurance amount can be claimed as a spousal benefit?
50%
How long must one be married to claim spousal benefits?
at least 1 year
How long must one have been married to claim surviving spouse benefits?
At least 9 months
At what age can a surviving spouse claim surviving spouse benefits?
age 60
How much of a deceased spouse’s PIA can be claimed as surviving spouse benefits?
Up to 100%, including delayed retirement credits; $250 paid upon death of a worker
How long must you have been married to claim divorce benefits for Social Security?
at least 10 years
Can a remarried spouse claim divorced spouse benefits?
No
How old must you be to claim divorced spouse benefits?
At least 62
What benefits are available to an ex-spouse eligible for divorce benefits?
spousal and survivor benefits
If you are receiving Social Security, will you be automatically enrolled in Medicare when eligible?
Yes, parts A and B
How long does the benefit period for Medicare Part A run?
begins when you start receiving treatment and ends 60 days after you are no longer receiving treatment
Which employees are not covered under Social Security (5)?
- Federal government workers hired before 1984
- Railroad employees covered under the Railroad Retirement System
- Business owners who receive only distributive (dividend) income for services performed
- Children under 18 who are employed by a parent in an unincorporated business
- State & local government employees who are members of a state or local government employer’s retirement system where the state or local government has elected to exclude Social Security coverage for such group