Social Security Flashcards
(227 cards)
1
Q
<p>SS Act Signed Into Law (Year)</p>
A
<p>1935</p>
2
Q
<p>Automatic COLA increases became law in\_\_\_\_\_\_.</p>
A
<p>1972</p>
3
Q
<p>Year of first COLA increase \_\_\_\_\_\_\_\_\_.</p>
A
<p>1975</p>
4
Q
<p>CPI Index currently used to compute COLA</p>
A
<p>CPI-W</p>
5
Q
<p>"Magic Date" for Restricted Application strategy</p>
A
<p>January 1, 1954</p>
6
Q
<p>Claim and Suspend Deadline</p>
A
<p>April 29, 2016</p>
7
Q
<p>\_\_\_% of all recipients DO NOT maximize their benefits</p>
A
<p>90%</p>
8
Q
<p>2019 SS surplus</p>
A
<p>$2.5B</p>
9
Q
<p>The First SS benefit was paid in \_\_\_\_\_\_ (year)</p>
A
<p>1937</p>
10
Q
<p>Benefits extended to spouse, surviving spouses and minor children \_\_\_\_\_\_\_\_ (year)</p>
A
<p>1939</p>
11
Q
<p>SS beneficiary types</p>
A
<p>Retired workers, spouses, children, widows(ers), disabled workers</p>
12
Q
<p>SS trust fund to disappear by \_\_\_\_\_ (year)</p>
A
<p>2035</p>
13
Q
<p>SS cannot operate in the \_\_\_\_\_\_ by law.</p>
A
<p>red</p>
14
Q
<p>Three leg stool spouse strategy</p>
A
<p>1. One spouse delays until age 70 2. Coordinate spousal benefits 3. Maximize surviving spouse benefits</p>
15
Q
<p>4 Types Of SS Benefits</p>
A
<p>Retirement, Survivor, Disability, Family</p>
16
Q
<p>SS Age of Eligibility</p>
A
<p>62</p>
17
Q
<p>At age \_\_\_\_ ,SSA will send a paper statement each year.</p>
A
<p>60</p>
18
Q
<p>\_\_\_\_\_ credits of work required to get SS benefits.</p>
A
<p>40</p>
19
Q
<p>Qualifying for retirement benefits (3)</p>
A
<p>40 credits, age requirements, file an application</p>
20
Q
<p>Credits are based on \_\_\_\_\_\_\_.</p>
A
<p>earnings</p>
21
Q
<p>SS age requirements (3)</p>
A
<p>62 (full month), 66 to 67 (FRA), FRA to 70</p>
22
Q
<p>1 credit equals $\_\_\_\_\_\_\_\_\_\_\_ of FICA wages</p>
A
<p>$1,470</p>
23
Q
<p>Maximum of \_\_\_\_\_ credits earned annually</p>
A
<p>4</p>
24
Q
<p>Must attain age\_\_\_\_ for an entire\_\_\_\_. Attain age is \_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_ birthday.</p>
A
<p>62, month / day before.</p>
25
FRA for those born between 1943-1954
66
26
FRA for those born 1960 and later
67
27
FRA definition
Age at which FULL SS benefit is paid
28
AIME
Average Indexed Monthly Earnings
29
Largest benefit at FRA is approx. $_______ for an individual born in 1959.
$3,283
30
2021 FICA Wage Cap
$142,800
31
Earnings are indexed for ___________ through the year of attaining age _____.
inflation / 59
32
Bend points are similar to _______ _______.
tax brackets
33
Number of years included in benefit calculation
35
34
Calculating benefits
1. $Actual Earnings x Index Factor
2. Add Highest 35 Years (Above)
3. Divide by 420 (number of months 35 years)
= $Average Indexed Monthly Earnings
35
Include ______ when computing bend points.
cents
36
2021 bend points
90% of first $996 of AIME / $896.40
32% over $996 - $6,002 (or AIME) / $1,601.92
15% over $6,002 up to AIME
37
Indexing factors and bend points are determined in the year that age ____ is attained.
62
38
SS Payment Dates (based on ________)
Birthdate
1-10 2nd Wednesday
11-20 3rd Wednesday
21-end 4th Wednesday
39
Earnings are indexed for inflation through age____.
59
40
Earnings beyond FRA are not included in the computation. Yes or No?
No
41
First bend point
90% of 996
42
Third bend point
15% of (AIME less $6,002)
43
FRA is 66. Benefit % reductions 62, 63, 64 and 65.
62 - 25%
63 - 20%
64 - 13.3%
65 - 6.7%
44
Bob turns 62 on April 22. When is he eligible to begin SSB? When will Bob receive his first benefit? Reduction 47 or 48 months.
Eligible in May
First benefit in June (4th Weds)
47 month reduction
45
RF for the first 36 months
5/9 of 1%
46
RF for each month greater than 36 (37-60)
5/12 of 1%
47
RF stands for
Reduction Factor (number of months before full retirement age)
48
Round down to the nearest __________.
Dime
49
Chole turns 62 on June 2. When is she eligible to begin SSB? When is her first benefit? Reduction 47 or 48 months?
Eligible in June
First benefit 2nd Wednesday in July
48 months
50
Attained age is _________ ___________ birthday.
Day Before
51
Veronica turns 62 on January 1. When is she eligible to begin SSB? When is her first benefit? Reduction 47 or 48 months?
Eligible in January
First benefit in February - 2nd Wednesday
47 months
52
Only folks that take a full 48 month reduction are people born on ______ of the month.
2nd
53
Those born 1960 or later will see a reduction of ____% if benefits begin at 62.
30%
54
Annual earnings test applies anytime a SS benefit is received prior to ______.
FRA
55
__________ _____________ only applies to earnings test.
Earned income
56
2021 Annual Earnings Test (AET)
Younger Than FRA $_________/year
$_____ for every $_____ reduction
$18.960
| $1 for every $2 reduction
57
2021 Annual Earnings Test (AET)
Year You Reach FRA $_________/year
$_____ for every $_____ reduction
$50,520
| $1 for every $3 reduction
58
Earnings Test:
Once you reach the ________of ________. There is ________ limit on earnings.
month, full retirement age, no
59
Stock option income IS/IS NOT included in the earnings test
IS NOT
60
True or False
| Money earned in the month you achieve FRA is NOT included in the earnings test
True
61
No DRCs earned after age _____.
70
62
DRCs earned in one year are not credited to your record until ________ _______ _______. Exception is until you wait until age _______, then you receive all DRCs right way.
the next year.
| 70
63
Medicare starts at age ____.
65
64
Spousal Benetits
You must be at least age _______.
62
65
Spousal benefit is ___% of the spouse or ex-spouse's PIA.
50
66
Independently Entitled Divorced Spouse benefits if you were divorced for at least __ years.
2
67
You cannot earn ______ __________ ________ on spousal benefits
delayed retirement credits
68
T or F?
| Same sex marriages are recognized by SS.
T
69
You must be ___________ to collect SS off an ex-spouse.
single
70
Duration of marriage (surviving spouse benefit)
9 months (exception military active duty) or accidental death
71
Remarry after age _____, you can still sign up for widow/widower benefits.
60
72
Earnings test does not go away until ________ _________ ________.
full retirement age
73
Amount of lump sum surviving benefit $______. File form _________. Decease needs _______ credits.
255, SSA-8, work
74
Alice's husband, Alex passed away when Alice was 53. At what age can Alice begin widow benefits if she is not disabled?
Age 60
75
T/F - People can accept benefits while being incarcerated.
F
76
Widow(er) benefits not eligible for _______ ________ ____________.
delayed retirement credits
77
Children's benefits _____% of parent's PIA (live case) and ______% (death case).
50%, 75%
78
Surviving spouse percentage of PIA _____%.
100
79
Spousal benefit _____% (living at FRA)
50
80
Child-In-Care % of PIA ______% (live)_____%(death)
50/75
81
Family maximum does not apply to _________.
ex spouses.
82
Family Maximum Formula
PIA x 1.75
83
Family maximum applies to ________, ________ and __________.
worker, current spouse and children.
84
Deemed filing does not apply to ______ _______.
surviving spouses
85
Restricted application goes away in _____.
2024
86
You cannot file a restricted application until _______ _____________ _________.
full retirement age.
87
COLA adjustments kick in at age _____.
62
88
______ applies if you have 40 social security credits and a pension from a non-SS system.
WEP (Windfall Elimination Provision)
89
______ applies to any Social Security spouse/widow benefits you might receive if you also have a non-SS system pension.
GPO (Government Pension Offset)
90
WEP only affects bend point number(s)______.
1
91
T/F
| Social Security taxes are withheld for workers under FERS.
True
92
The WEP was passed by congress in ______ (year).
1983
93
WEP does not apply to __________ __________.
survivors benefits.
94
GPO can reduce benefit to ______.
zero
95
WEP will not apply if the worker has ____ years of substantial earnings.
30
96
___ month waiting period for SS disability benefits.
5
97
Medicare does not cover _________, _________, and ___________.
dental, vision, hearing
98
Medicare PART C does cover _________, _________, and ___________.
dental, vision, hearing
99
At FBA, a surviving spouse benefit is equal to ____% of a deceased spouse's SSB?
100%
100
Provision allowing an individual to file an application and suspend benefits is known as _________ and _________.
file, suspend
101
Spousal benefits are not reduced at age 62. T or F?
F.
102
Bob turns 62 on June 15th. His first month of eligibility is_________? When will Bob receive his first benefit? Reduction - 47 or 48 months?
July, August, 47
103
Cynthia's AGI is $100,000. What percent of her SSB will be subject to tax?
85%
104
Original Medicare consist of Parts _____ and _____.
A and B.
105
When computing SSB, _____ 35 years of _____ earnings are included.
highest, indexed.
106
Breakeven point for folks waiting to age 66 to draw benefits is generally _____ years.
12
107
FRA for folks born between 1943 and 1954 is ____ years old.
66
108
Tony turns 62 on June 2. His first month of eligibility is ____? When will he receive his first benefit? Reduction 47 or 48 months?
June, August - 2nd Weds in July, 48 mos
109
The only day of the month where you get full 48 month "haircut" is _______ _______ _____ ______ _____.
the 2nd of the month.
110
Sid and Jean were married for 9.5 years prior to divorce. Can either draw ex-spousal benefits?
No, it is a 10 year cutoff
111
What provision impacts an individual's SSB if he/she is also entitled to a public employee pension?
WEP - Windfall Elimination Provision
| "W" stands for worker
112
In Ohio ___% of public employees are NOT covered by SS? In MA?
97.5, 95.9
113
Cindy can file a restricted application at age 63. Yes/No?
No. You must be FRA and be born by the magic date of Jan 1, 1954.
114
Sam's PIA is $2,500. Amanda's PIA is $750. What is Amanda's spousal boost at her FRA?
$1250 - $750 = $500
115
Medicare advantage is known as Part_____?
C
116
Steve's PIA is $2,000. Susan's PIA is $1,100 What is Susan's spousal boost at her FRA?
$1000-$1100= ZERO. No spousal boost.
117
A child (age 10) and a young mom/dad are both entitled to SSB if the other parent begins benefits? T or F
True. It is a child in care benefit
118
Can a person utilize the "do over" provision after receiving benefits for 2.5 years?
No
119
At age 60, widow benefits are reduced by ____%
28.5
120
A widow can begin drawing widow benefits at age 60 and switch to benefits on her own record later. True or False?
True. Deemed filing does not apply to surviving spouses.
121
A decision to draw off an ex-spouse cannot be changed. Yes/No?
No, it can be changed.
122
Automatic COLA increases became law in:
a. 1970
b. 1972
c. 1974
b. 1972
123
What CPI index is currently used to compute COLA?
a. CPI - E
b. CPI - U
c. CPI - W
c. CPI - W
124
Number of credits required for SS Retirement Benefits:
a. 35
b. 40
c. 45
b. 40
125
Max credits you can earn in one year is _____.
4
126
Credits are based on _______.
earnings.
127
1 Credit = $_____ FICA wages/earnings
$1,470
128
$1,470 = ___ credit(s)
1
129
John earns $25,000 on January 2. He dies on January 3. John will earn _______ credits for the year. How many credits would John earn if he died December 16? July 1st?
1, 4, 3
You need to be alive in the quarter to earn credits.
130
Earnings are indexed for inflation through age ____.
59
131
2nd SS bend point _________.
32% over $996 through $6,002
132
3rd SS bend point _________.
15% over $6,002 up to AIME
133
Delayed retirement credits if you wait beyond your full age, to age ____.
70
134
Reduction for the first 36 reduction factors
5/9 of 1%
135
Reduction for each month greater than 36
5/12 of 1%
136
Assuming FRA is 66, benefits are reduced by ___% if begun at age 62.
25
137
Folks born in 1960 or later, will see a reduction of ____% if benefits begin at age 62.
30
138
Nancy decided to claim SSB at age 62. At Harold’s surprise birthday party, he told her that when she reaches age 66, she will be eligible for full benefits. True or false?
False
139
Mike is age 62 and entitled to monthly benefits of $1,500 effective March 2021. Mike’s total earnings for 2021 are expected to be $21,450. How many month's of benefit will be withheld? Excess earnings?
To determine the excess earnings:
$21,450 - $18,960 = $2,490
$ 2,490 / 2 = $1,245
$1,245 are the excess earnings that must be withheld from the 2021 benefits. Social Security will withhold 1 month of benefits until he files his annual report in 2022.
140
Mike is age 62 and is receiving a monthly benefit of $1,416 (PIA is $2,000), effective March 2021. Mike is married to Suzy. Suzy is also age 62 and is receiving a monthly benefit of $658 ($1,000 * 65.833%) from Mike’s work record. Mike’s total earnings for 2021 are expected to be $26,450. How many months are withheld? Excess earnings?
To determine the excess earnings:
$26,450
$18,960
$ 7,490 / 2 = $3,745. $3,745 are the excess earnings that must be withheld from Mike and Suzy’s 2021 benefits. Social Security will withhold 2 months of benefits from Mike and Suzy until Mike files his annual report in 2022.
141
Sam retires on 12/31/20 and begins SSB on 1/1/21. He turns 62 on January 2, 2021. Sam receives a $100,000 check for severance pay and accrued sick and vacation time in January 2021. Is the $100,000 considered as earnings for the earnings test? What if Sam is on recall?
The $100,000 is NOT subject to the earnings test.
If he was on recall, it is included.
142
Barbara, age 62, retires in February 2021 and begins SSB in September 2021. Barbara receives compensation of $100,000 in March 2021. Is the $100,000 considered as earnings for the earnings test?
Yes, it is all in the same year. Barbara will be subject to a monthly test.
143
Amber, single after divorcing Harold for the third time, annually receives $75,000 in IRA distributions and $100,000 from lottery winnings. Amber is 64. Is this income considered in the earnings test?
No, neither source is earned income.
144
Veronica begins SSB at age 62 in September. Veronica earned $250,000 from January through August 31. Her monthly earnings from
```
Sept. through Dec.:
September - $0
October - $1,500
November - $2,500
December - $750
```
Will Veronica’s SSB be impacted due to her earnings? (MET)
Yes, she will lose her November benefit. $18,960/12 = $1580. She only loses the month in which she is over - NOVEMBER.
145
Sam exercised stock options resulting in $75,000 income on W-2. This income is reported under Code V on Form W-2. Is this income included in the earnings test?
Stock option income is NOT included in the earnings test.
146
Beth turns 66 on September 16th. Beth has been receiving SSB since age 62. Beth just landed a big client and received a bonus of $250,000 on September 14th. Will this income count in the earnings test?
It will NOT count in the earnings test - it is the month Beth achieves FRA.
147
Sam decides to begin benefits in January. His 66th birthday is in February. Sam receives W-2 income of $46,000 in January. Will Sam receive a SSB for the month of January?
$50,520 is the earnings test the year of FRA.
148
Samantha begins SSB at age 68. Will Samantha receive any Delayed Retirement Credits? Her FRA is 66. If so, how much?
2 years - 16 % increase
149
Alex is considering beginning benefits at age 70, as he will receive DRCs of ___? However, at a welcome to the neighborhood party, Harold told Alex to begin benefits at age 72, thereby receiving an additional two years of DRCs. Harold learned of the additional DRCs at a football tailgate party. Is Harold’s advice correct? Is there a limit on DRCs?
32%
Harold is incorrect
Limit on DRCs is up to age 70
150
George waited to age 70 and received DRCs of 32%. Is this increase permanent?
Yes
151
Harold told Winton and Claire (married together) that they cannot both wait to age 70 and receive the maximum Delayed Retirement Credits. Agree?
Disagree - they can both wait until age 70 to max DRCs.
152
The Medicare Hold Harmless Provision
The Medicare hold harmless provision prevents a recipient's Social Security benefits from being reduced due to Medicare Part B premiums. ... To qualify, recipients must receive Social Security benefits and have their Medicare Part B premiums paid by those benefits for a minimum of two months in the previous calendar year.
153
Disability Benefits - What is SGA?
Substantial Gainful Activity (SGA)
154
Year disability benefits were added to the SS program ________.
1956
155
Disability trial work period amount $______.
940
156
Disability $_________ (non-blind), $_________ (blind)
$1310 / $2190
157
Disability eligibility must meet ___/___.
20 quarters of coverage in the 40 quarter period before becoming disabled (i.e. worked 5 out of the last 10 years)
158
Disability eligibility: must be under _______ ________ _________.
full retirement age
159
SSI stands for?
Supplemental Security Income
160
SSI max benefit 2021
$794
161
SSI payments DO/DO NOT not come from SS trust fund.
DO NOT
162
What does SSDI stand for?
Social Security Disability Insurance
163
Medicare Qualification
Age ____ or older. You are a U.S. citizen or legal resident and you’ve lived in the U.S. for at least ___ consecutive years
65 / 5
164
Medicare Qualification
Those receiving Social Security disability benefits for at least ____months
24
165
Medicare part B standard monthly premium$_________.
148.50
166
SSDI supports individuals who are disabled and have a ______ _______ _______, either through their own employment or a family member (spouse/parent).
qualifying work history
167
AIME is $8,500. Compute PIA
a. 996 * .9 = 896.40
b. 5,006 * .32 = 1,601.92
c. 2,498 * .15 = 374.70
Total - $2,873.02
168
Jimmy’s PIA is $2,600. Compute amount of benefit payable at age 63 and zero months.
36 months to age 66
66years - 63 years = 3
3 x 12 = 36 mos
$2,600*.8=$2,080
.8 from EARLY RETIREMENT REDUCED BENEFIT RATES
169
Two benefits NOT taxable
Supplemental Security Income (SSI)
| Lump-sum death benefit
170
(4) taxable SS benefits
Retirement, Survivor, Disability, Children
171
Only ___ states tax some (or all) SS benefits.
13
172
Amount of benefits included in income is dependent on _________ income.
provisional
173
Spousal benefits - you must be at least age ____ and duration of marriage _____months or more.
62, 12
174
The 50% bracket for a married couple begins at what level of provisional income?
$32,001
175
The 50% bracket for Single (HOH) begins at what level of provisional income?
$25,001
176
As of December 31, 2018, the SS trust fund reached $____ in assets. The trust fund assets are invested in ____________.
$2.8T, US Treasury Securities
177
WEP Reduction Factors 20-30 years
```
30 or more 90%
29 85%
28 80%
27 75%
26 70%
25 65%
24 60%
23 55%
22 50%
21 45%
20 or less 40%
```
178
John reaches his FRA in November 2020. At his nephew’s graduation party, Harold told John that his spouse can receive spousal benefits while his benefits have been suspended. Is Harold correct? Yes or No
No
179
If a spouse never worked, is he or she entitled to spousal benefits?
Yes
180
John earns $25,000 on January 2. He dies on January 3. John will earn __ credits for the year. How many credits would John earn if he died December 16? July 1st?
1, 4, 3
181
FRA for folks born between 1943-1954:
a. 65
b. 62
c. 67
d. 66
d. 66
182
Earnings are indexed for inflation through age ____.
59
183
Earnings beyond FRA are not included in the computation. Yes or No?
No
184
AIME - $7,500. Third bend point is:
a. 90% of $996
b. 32% of $6,002
c. 15% of (AIME less $6,002)
c. 15% of (AIME less $6,002)
185
SSB are based on ____ years of earnings
35
186
Assuming FRA is 66, benefits are reduced by ___% if begun at age 62.
25
187
Folks born in 1960 or later, will see a reduction of ____% if benefits begin at age 62.
30
188
Nancy decided to claim SSB at age 62. At a surprise birthday party, she was told her that when she reaches age 66, she will be eligible for full benefits. True or false?
False
189
Sam retires on 12/31/20 and begins SSB on 1/1/21. He turns 62 on January 2, 2021. Sam receives a $100,000 check for severance pay and accrued sick and vacation time in January 2021. Is the $100,000 considered as earnings for the earnings test?
What if Sam is on recall?
No
Yes
190
Barbara, age 62, retires in February 2021 and begins SSB in September 2021. Barbara receives compensation of $100,000 in March 2021. Is the $100,000 considered as earnings for the earnings test?
Yes
191
Amber, single after divorcing Harold for the third time, annually receives $75,000 in IRA distributions and $100,000 from lottery winnings. Amber is 64. Is this income considered in the earnings test?
No
192
Sam decides to begin benefits in January. His 66th birthday is in February. Sam receives W-2 income of $46,000 in January. Will Sam receive a SSB for the month of January?
Yes
193
Beth turns 66 on September 16th. Beth has been receiving SSB since age 62. Beth just landed a big client and received a bonus of $250,000 on September 14th. Will this income count in the earnings test?
No
194
Samantha begins SSB at age 68. Will Samantha receive any Delayed Retirement Credits? Her FRA is 66. If so, how much?
16%
195
Alex is considering beginning benefits at age 70, as he will receive DRCs of _____%? However, at a welcome to the neighborhood party, Harold told Alex to begin benefits at age 72, thereby receiving an additional two years of DRCs. Harold learned of the additional DRCs at a football tailgate party. Is Harold’s advice correct?
Is there a limit on DRCs?
32%
No
Yes, age 70
196
George waited to age 70 and received DRCs of ____%. Is this increase permanent?
32%
197
Spousal benefits are equal to ____% of covered worker’s PIA?
50
198
Husband’s PIA is $2,215. Wife’s spousal benefit at age 66 is $_______? Benefit at age 62 is $_______?
$1,107
| $775
199
Steve begins benefits at age 62 and takes a 25% reduction. His PIA is $2,000. Steve receives $1,500 at age 62. His wife, Beth, begins spousal benefits at her FRA. Beth will receive ½ of Steve’s age 62 benefit. True or false?
False
200
Albert’s PIA is $2,500. Albert begins benefits at age 70 and receives $3,300. How much will his spouse, Betty, receive as a spousal benefit at her FRA?
$1,250
201
At a camping excursion Harold told Ron and Kathy (married together) that they can both receive spousal benefits at the same time. Is this permissible?
No
202
FICA
Federal Insurance Contributions Act
203
FICA Tax (Employed and Self-Employed)
7.65%
| Self-Employed 15.3%
204
Y or N?
| A decision to draw off an ex-spouse cannot be changed.
No
205
A widow can begin drawing widow benefits at age 60 and switch to benefits on own record later. T or F
True
206
At age 60, widow benefits are reduced by ____%.
28.5
207
Can a person utilize the “Do Over” provision after receiving benefits for 2.5 years?
No
208
A child, age 10, and a young mom/dad are both entitled to SSB if the other parent begins benefits?
T or F
T
209
Cindy can file a restricted application at age 63.
| Yes or No?
No
210
WEP will not apply if the worker has ____ years of substantial earnings.
30
211
The Windfall Elimination Provision will impact the benefits computed under all three Bend Points. True or false?
False
212
The Government Pension Offset provision may reduce spousal benefits to zero after what percentage offset is applied?
Two-thirds
213
Betty has been a schoolteacher all her working career. Her husband, Steve, just turned FRA and began receiving SSB of $2,000 per month. Which provision will impact the amount of SSBs Betty can receive as a spouse? WEP or GPO?
GPO
214
Darlene is entitled to a public employee pension as she worked as a teacher and is also entitled to SSB from her drug trafficking business. Which provision impacts the amount of SSB?
WEP
215
Peg decides to take her benefits at age 62 and receives $750. Her PIA is $1,000 per month. Her husband, Pete, is FRA. How much will he receive in spousal benefits at FRA, age 68 or age 70? Pete’s PIA is $2,500. Pete desires to wait to age 70 to draw off his record. What steps must Pete, (DOB 1/1/53), take to achieve his goal of receiving spousal benefits at FRA?
$500
| Pete can file a restricted application
216
Benefits will increase by COLA adjustments and DRCs if begun after FRA. True or False?
True
217
Both spouses can file restricted applications and collect spousal benefits at the same time. True or False?
False
218
At age 64, Alan can file a restricted application. True or false?
False
219
Oops, Tom believes that he made a mistake by filing for benefits at age 62. He is now age 64. Tom wishes to wait to age 70 to maximize benefits to his wife when he is gone. In a dream (nightmare), Harold told Tom that the “do over” strategy is still available. Tom is skeptical and decided to speak with a NSSA® Certificate Holder. Can Tom utilize the “do over”? Is there a time restriction?
NO
| 12 MONTHS
220
At age 64, Chris desires to claim spousal benefits. Her FRA is 66. Her husband, Tony, is 66 years old and wants to wait to age 70. Remaining option for Chris to claim a spousal benefit?
Tony must turn on benefits
221
A surviving spouse may file for surviving spouse benefits at age 60 and then switch to benefits on own work record as early as age 62. True or false?
True
222
When Cynthia begins benefits, her 3 minor children are also entitled to benefits. What provision will limit the amount of benefits paid to Cynthia and her 3 children? Does this provision apply to ex-spouses?
FAMILY MAXIMUM
| No
223
Cynthia, a widow, was receiving $2,250 in benefits as a surviving spouse. She remarries at age 63 to Harold’s twin brother, Hal, in her retirement community. Will Cynthia’s widow benefits continue after remarriage? What if Cynthia was not collecting surviving spouse benefits when remarried. Can she still collect widow benefits?
Yes
| Yes
224
Robert passed away at age 67. He was not receiving SSB, but was eligible for $2,100 per month. His wife, Sue, is confused as Robert was not receiving any SSBs when he passed away. Sue is concerned that either she is not entitled to any widow benefits or will only receive his PIA. What level of benefits will Sue receive as a widow at FBA?
$2,100
225
Year SS payments began ________.
1937
226
FICA wage cap for 2021
$142,800
227
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If FRA is 66 reduction if benefits start...
Age 62
Age 63
Age 64
Age 65
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62 - 25%
63 - 20%
64 - 13.3%
65 - 6.7%
