Social Security

Question 1

• signed into law in 1935 by President Roosevelt
• Great Depression to assist the masses of people who could not afford to sustain their way of life because of unemployment, disability, illness, old age, or death.

Answer 1

Social Security

Question 2

Social Security extends coverage to virtually ________ __________ who is employed or self-employed, with few exceptions

Answer 2

Every American

Question 3

Social Security benefits are based on what?

Answer 3

How long a covered worker has worked

throughout his life.

Question 4

What are the 2 types or insured status?

Answer 4

fully insured status: covered worker with 40 quarter credits=10 years or work

currently insured: worker with 6 credits earned during the last 13 quarter period

Question 5

FICA tax

Answer 5

-applied to an employee’s income up to a certain income amount called the taxable wage base

Question 6

How much must a ss beneficiary file on their tax return in order to be subject to fed income tax? What about joint filers?

Answer 6

individual: $25,000
joint: $32,000

Question 7

The amount of Social Security benefits a person receives is based on……?

Answer 7

-the individual’s average monthly

wage during his working years.

Question 8

primary insurance amount (PIA)

Answer 8

is used to establish the benefit. It is equal to the worker’s full retirement benefit at age 65

Question 9

Social Security Survivors benefits or death benefits

Answer 9

lump-sum death benefit or monthly income

to survivors of deceased

Question 10

Survivor’s benefits

Answer 10

• $255 lump-sum
• surviving spouse benefits
• child’s benefit,
• parent’s benefit.

Question 11

Social Security Disability Benefits

Answer 11

• must be fully insured
• 5 month waiting period
• only available prior to the age of 65

Question 12

• The inability to engage in any gainful work that exists in the national economy
• The disability must result from a medically determinable physical or mental impairment that is expected to result in early death, or has lasted, or is expected to last for a continuous period of 12 months

Answer 12

Definition of Disability

Question 13

Retirement Benefits

Answer 13

• fully insured
• monthly
• retire early (62) 80%

Question 14

• begins when Social Security survivorship benefits cease(youngest child turns 16)
• ends when the surviving spouse turns at least 60 years old

Answer 14

Black-Out Period