Social Security Flashcards
Amount needed for 1 quarter of coverage in 2023
1 Quarter = $1,640
Who is eligible to receive SS benefits
-disabled insured worker under age 65
-retired insured worker age 62 or older.
-spouse of a retired or disabled worker who is at least 62 OR is caring for a child under age 16 or disabled child
- Divorced spouse of retired or disabled worker, if ex spouse is age 62 and married to worker for 10 years or more and didn’t remarry by age 60
Temporary Reduce benefit - early retirement above threshold
Threshold - $21,240
Benefit reduced by $1 for every $2 of benefit
Temporary Reduce benefit - FRA above threshold
Threshold - $56,250
Year in which you reach age of retirement benefit is reduced by $1 for every $3
Permanently reduced benefit - Early retirement
First 3 years - Reduced by 5/9 * # of months of early retirement up to 3 years
Any amount of time over 3 years - Reduced by 5/12 * # of months of early retirement above 3 years
Taxation of benefits - single hurdles
*Between $25k & $34k - benefits 50% of benefits taxed.
* Above $34k - 85% of benefits can be taxed
Taxation of benefits - MFJ hurdles
*Between $32k & $44k - benefits 50% of benefits taxed.
* Above $44k - 85% of benefits can be taxed
Definition of Disability
- physical/mental impairment for 5 months that is expected to prevent the worker from performing substantial work for at least one year or result in death
- Benefits start in 6th month following the 5th month waiting period of impairment
Eligibility for SS disability
- Age 31 & older: Fully insured (has 40 quarters) and earned 20 quarters of the last 40 quarters
- Age 24-30: Worker earned 1/2 quarter available since age 21
- Age 21-24: Earned 6 quarters in the last 12 quarters
Survivorship eligibility
- worker fully insured or currently insured
- Child under age 18 (19 if still in HS)
- Child disabled before age 22
- Spouse with child under the age of 16
- Fully insured, benefit starts at age 60
- One time lump sum of $255 to beneficiary
- Currently insured = NO coverage for spouse
Medicare Age
65 or older
Medicare Benefits
- Spouses can qualify at age 65 on the other spouses record
-Auto enrolled if receiving retirement benefits, or at any age if receiving SS disability for 2 years
Medicare Part A - When does the Benefit Period start and end
begins on the first day the insured is in the hospital and ends after 60 days of no further skilled care.
Medicare Part A
Hospital Insurance
- Places include inpatient hospital care and home health care.
- Semi-private room, meals, operating and recovery room, lab tests, x-rays.
- Hospice Coverage.
- Skilled nursing care facility following a covered hospital stay
Benefit Period Amount paid by the insured
The deductible is $1,600 per benefit period.
* The first 60 days is just the deductible.
- Beyond the 60th day, coinsurance amounts:
- $400 for days 61-90, per day.
- $800 for days 91-150 for each lifetime reserve day. There are only a total of 60 lifetime reserve days.
- $200 per day for skilled nursing care days 21-100. The first 20 days following a hospital stay are covered 100%.
