RSSA Test Flashcards
The 2025 Annual Earned Income Limit or Maximum Taxable Earnings is…
$147,000
O $176,100
© Correct! This is the 2025 Annual Earned Income Limit.
$142,800
$168,600
Social Security began in and benefits were first subject to taxation in
O Social Security began in 1935 and taxation of benefits began in 1983.
What are two of the most important and commonly discussed automatic determinations or “annual constants” that the Social Security program determines each year?
The National Average Wage Index and the Cost of Living Adjustment
Which of the following is a true statement about Calculating Social Security benefits?
The process is a 2-step procedure which first determines the Average Indexed Monthly Earnings, AIME, and then the Primary Insurance Amount, PIA, which is the Social Security monthly benefit a retiree will receive if collecting at FRA.
A Quarter of Coverage is what ? (OC)…
Is the unit used to determine if a worker is insured under the Social Security program.
Which of the following is not true about the Dual Entitlement provision of Social Security? (One person qualifying for two benefits.
Under Dual Entitlement, a person’s benefit as a spouse or widow is not affected by the amount of their own retirement benefit amount.
Is it true that a widow can collect more the her decrese spouse using the widow’s limit (RIB-LIM)?
The widow’s limit allows some survivors to collect a greater survivor benefit than their deceased spouse was collecting.
Which of the following is false about the Family Maximum Benefit?
The family maximum benefit only affects children’s benefits.
Which of the following is false about spousal benefits?
By waiting until age 70 to collect a spousal benefit, a retiree can collect up to a 32% increase of their spouse’s PIA due to delayed retirement credits.
Which of the following is true about the earnings test? I.E taxation
The Earnings Test has two different exempt amounts depending on what age you are.
Lower limit
In 2025, the lower limit is $23,400
For every $2 earned above the lower limit, $1 is withheld from benefits
Higher limit
In 2025, the higher limit is $62,160
For every $3 earned above the higher limit, $1 is withheld from benefits
Jane is 64 and collects $1,000 per month of Social Security. She is also working and will earn $25,000 in 2025. Based on the 2025 exempt amounts of $23,400 and $62,160 how much will be withheld from Jane’s benefit this year?
800
Which of the following statements is not true?
For couples, it is most important to consider the woman’s life expectancy.
Paul has a PIA of $3,000 and applies for retirement benefits at his FRA of 67. If his wife, Wendy, is only eligible for spousal benefits, how much will she receive if she claims when she is 62?
$975
At what filing age would a person receive 86.66% of their primary insurance amount, assuming their FRA is 67?
65
Dan (66) and his wife Debbie (58) have three children - Amy (19), a freshman in college, and twins Harry and Heather (16). When Dan starts collecting Social Security this year, which of the following is true?
Only Harry and Heather can collect benefits until they turn 18 (or 19 if in high school).
If a person is collecting 132% of their primary insurance amount, what is their full retirement age?
66
The Family Maximum Benefit (FMB)…
Is determined by an equation that uses the worker’s PIA
Which of the following is false about survivor full retirement ages?
They are always the same as retirement benefit FRAs
Chad is a 63 year old lifetime high earner. He has not started collecting his retirement benefit yet. Which of the below is currently eligible for a spousal benefit?
O His 62 year old ex-wife who he was married to for 15 years and has been divorced from for 3 years
What is the definition RIM LIM
“RIB LIM” in Social Security stands for “Retirement Insurance Benefit Limitation,” which is a rule that limits the amount a surviving spouse (widow or widower) can receive in benefits if the deceased worker claimed their Social Security benefits early, resulting in a reduced retirement benefit; essentially, it prevents the surviving spouse from receiving a higher benefit than the deceased worker would have received if they had waited until full retirement age to claim benefits.
