Social Security Flashcards
What are the 6 major categories of benefits administered by the Social Security administration?
1) Retirement Benefits
2) Disability Benefits
3) Family Benefits
4) Survivors’ benefits
5) Medicare
6) Supplemental Security Income
Who is the family benefit provided to?
1) Spouses 62 or older
2) Spouses under 62 caring for a child under age 16
3) Unmarried Children under 18
4) Unmarried Children under 19 & full-time students
5) Unmarried children any age disabled before 22
What people automatically qualify for medicare?
65 or older OR those who received disability benefits for at least 2 years
What is (SSI) Supplementary Security Income funded by?
General tax revenues (not by social security taxes)
What are the requirements to become a covered worker under social security?
Contributing for 10 years (40 quarters)
What is the law allowing social security taxes and medicare taxes to be deducted from paychecks?
Federal Insurance Contributions Act ) FICA)
2022 OASDI (aka social Security) taxability Limit?
$147,000
Who pays the additional medicare tax of 0.9% that began in 2013?
Only Employees - wages or self employment income
The 3.8% Medicare tax is imposed on the lesser if net investment income or modified AGI over the following amounts:
MFJ : $250,000
MFS : $125,000
Single : $200,000
Head of Household : $200,000
What does the 3.8% Medicare surtax apply to?
Investment income only - not wages from employment or distributions from qualified plans
What are the 2 medicare trust funds?
1) Hospital Insurance Trust Fund
2) Supplementary Medical Insurance Trust Fund
Pays for services covered under the hospital insurance provisions of Medicare (Part A)
Hospital Insurance Trust Fund
Pays for services covered under the medical insurance provisions of Medicare (Part B)
SMI - Supplementary Medical Insurance Trust Fund
“Currently” Insured Workers
Those individuals who have at least six quarters of coverage out of the previous 13 quarters under Social Security
The amount of earnings required for a quarter of coverage under Social Security?
$1,510
Rules for a divorced spouse to receive SS benefits of a fully insured worker who has not yet filed a claim for benefits?
Must be…
- Both her an ex-spouse are at least 62
- Were married for at least 10 years
- Divorced for at least 2 continuous years
Social security benefits can be paid to a disabled insured worker under age ________ .
65
Social security benefits can be paid to a retired insured worker at age _________ .
62 or older
Social security benefits can be paid to the spouse of a retired or disabled worker who:
- Is at least 62
- OR is caring for a child who is under 16 or disabled
Social security benefits can be paid to divorced spouse of a retired or disabled worker if the divorced spouse is …
- Age 62 or older
- Was married for at least 10 years
Social security benefits can be paid to the dependent , unmarried child of a retired or disabled worker or a a deceased insured worker if the child is …
- Under age 18
- Under age 19 and a full time elementary or secondary school student
- Age 18 or over but disabled (if the disability began before age 22)
Social security benefits can be paid to surviving spouse (including a surviving divorced spouse) of a deceased insured worker if the widower is age ________ .
60 or older
Social security benefits can be paid to the disabled surviving spouse (including divorced spouse) of a deceased insured worker if the widower is age _________ .
50 or older
Social security benefits can be paid to the surviving spouse (including divorced spouse) of a deceased insured worker, regardless of age if …
- caring for an entitled child of the deceased who is either under age 16 or disabled before age 22
Social security benefits can be paid to the dependent parents of a deceased insured worker at age _________ .
62 or older
Elements needed to determine a workers social security retirement benefit.
- Person’s age
- Actual earnings history subject to Social Security tax
- Worker’s retirement date
The social security administration calculates ___________ during the —- years in which the applicant earned the most.
AIME (Average Indexed Monthly Earnings)
35 years
How to determine indexing factor for Social Security AIME calculation?
Average wage for current year / Average wage in year SS participation began
Annual COLA increases are determined in _________ of each year and go into effect in time so that they first appear on monthly benefit checks received in the following _____________ .
October
January
