Social Security And Medicare

Question 1

What determines your Social Security benefit?

Answer 1

Your highest 35 years of indexed earnings and the age you claim.

Question 2

When can you first claim retirement benefits?

Answer 2

Age 62, with a permanent reduction.

Question 3

What is Full Retirement Age (FRA)?

Answer 3

Age 66–67 depending on birth year; benefits are unreduced if claimed at FRA.

Question 4

What is the maximum benefit at age 70 in 2025?

Answer 4

Approximately $4,873/month (subject to annual COLA updates).

Question 5

Are benefits adjusted for inflation?

Answer 5

Yes, via the annual Cost of Living Adjustment (COLA).

Question 6

What is a spousal benefit?

Answer 6

Up to 50% of your spouse’s FRA benefit if higher than your own.

Question 7

Can you receive a spousal benefit and your own benefit?

Answer 7

You receive the higher of the two, not both.

Question 8

When can survivor benefits begin?

Answer 8

As early as age 60 (or 50 if disabled), with reduced amounts before FRA.

Question 9

Can survivor benefits be switched to your own later?

Answer 9

Yes—you can take one benefit early and switch to the other later for a higher amount.

Question 10

Can ex-spouses receive benefits?

Answer 10

Yes, if the marriage lasted at least 10 years and the recipient is unmarried and age 62+.

Question 11

How much is your benefit reduced if you claim at 62?

Answer 11

About 25–30% depending on your FRA.

Question 12

What’s the benefit of delaying past FRA?

Answer 12

8% delayed retirement credits each year up to age 70.

Question 13

Should everyone delay benefits?

Answer 13

No—it depends on life expectancy, cash flow, and spousal coordination.

Question 14

Can you suspend benefits once started?

Answer 14

Yes—after FRA, you can suspend to earn delayed credits.

Question 15

What happens if you earn too much while claiming before FRA?

Answer 15

Benefits are reduced by $1 for every $2 over the earnings limit.

Question 16

Are Social Security benefits taxable?

Answer 16

Yes—up to 85% of benefits may be taxable depending on income.

Question 17

What is the provisional income formula?

Answer 17

AGI + nontaxable interest + 50% of Social Security.

Question 18

What are the income thresholds for taxation of benefits (2025)?

Answer 18

Single: $25k/$34k | Married: $32k/$44k.

Question 19

What is a tax planning strategy to reduce taxation on Social Security?

Answer 19

Roth conversions and tax-free withdrawals can reduce provisional income.

Question 20

Can QCDs help reduce Social Security taxation?

Answer 20

Yes—they lower AGI and provisional income.

Question 21

What is Medicare Part A?

Answer 21

Hospital insurance—usually premium-free if you paid into the system.

Question 22

What is Medicare Part B?

Answer 22

Outpatient coverage with a monthly premium.

Question 23

What is Medicare Part D?

Answer 23

Prescription drug coverage.

Question 24

What is Medicare Advantage (Part C)?

Answer 24

A bundled plan that includes A, B, and sometimes D—administered by private insurers.

Question 25

When does Medicare eligibility begin?

Answer 25

At age 65, regardless of Social Security claiming age.

Question 26

What is IRMAA?

Answer 26

Income-Related Monthly Adjustment Amount—higher premiums for Medicare Parts B and D for high-income earners.

Question 27

When is IRMAA applied?

Answer 27

Based on MAGI from two years prior.

Question 28

Can you appeal IRMAA?

Answer 28

Yes, if your income dropped due to a qualifying life event (e.g., retirement).

Question 29

What is the Medicare Initial Enrollment Period?

Answer 29

A 7-month window around your 65th birthday (3 months before, the month of, and 3 months after).

Question 30

What is the Medicare General Enrollment Period?

Answer 30

Jan 1–Mar 31 each year for late enrollees.

Question 31

What is the Medicare Special Enrollment Period?

Answer 31

Available if you delayed due to employer coverage—avoid late penalties.

Question 32

Analogy for FRA vs early claiming?

Answer 32

Claiming early is like cashing in a lottery ticket now instead of waiting for the full prize.

Question 33

Analogy for IRMAA?

Answer 33

Think of it like a surcharge for VIP income status—Medicare notices if you’re flush.

Question 34

Reframe for ‘I’ll just claim early to be safe.’

Answer 34

You could miss out on 25–30% more for the rest of your life—let’s zoom out and run the numbers.

Question 35

Analogy for survivor benefit timing?

Answer 35

Like picking the stronger horse to ride long term—you can switch later for the bigger benefit.

Question 36

Reframe for ‘Medicare is free, right?’

Answer 36

Part A is usually free, but B and D are more like memberships with monthly dues.