CH 19 - Social Security Flashcards Preview

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Flashcards in CH 19 - Social Security Deck (16)
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1
Q

What workers are NOT covered by Social Security? (4)

A
  • Fed employees (pre-1984)
  • ministers who elect out
  • state and local who elect out
  • American citizens who work abroad for foreign affiliates of U.S. employers
2
Q

A person is considered FULLY insured if they have _____ quarters of coverage. A person is currently insured for death benefits only if they have _____ quarters of coverage.

A

A). 40

B). 6 out of 13

3
Q

There is one quarter of coverage for $_______ in earnings.

A

$1,300

4
Q

What is the average indexed monthly earnings(AIME) based on?

A

Highest 35 years of your wage history and is indexed for inflation up to age 60.

5
Q

Average indexed monthly earnings (AIME) is capped at…

A

the taxable wage base.

6
Q

Which of the following provide higher benefits for lower wages due to compensation being capped at the taxable wage base?

A). AIME

B). PIA

A

PIA

7
Q

Who gets Social Security retirement benefits? (6)

A
  1. worker age 62
  2. spouse age 62
  3. spouse any age with under 16 children
  4. dependents under 18 children
  5. unmarried divorced spouse of 10 years
  6. family maximum may apply if 3 or more benefits
8
Q

provisional income formula

A

AGI + (tax exempt interest) + ( half of Social Security benefit )

9
Q

How are Social Security benefits taxed?

A). single

B). married

A

single = $25K (50%) and $34K (85%)

married = $32K (50%) and $44K (85%)

10
Q

What is the impact of taking Social Security benefits prior to full retirement age?

A

5/9 of 1% for each of the first 36 months

5/12 of 1% for each next 24 months

11
Q

What is Social Security delayed retirement?

A

those born in 1943 or later gets is an 8% increase until age 70

12
Q

Benefits are reduced $___ for every $___ over the threshold AFTER full retirement age.

Benefits are reduced $___ for every $___ over the threshold THE YEAR OF full retirement age.

A

A). $1 / $2

B). $1 / $3

13
Q

The earnings test reduces benefits for Social Security beneficiaries under FULL retirement age if wages from employment exceed $_______.

A

$16,920

14
Q

There are special rules for the calendar year for which an individual attains FULL retirement age. You only count the ___________ attaining full retirement age for the earnings test.

A

months before

15
Q

Social Security retirement benefits are increased as the ________ increases.

A

consumer price index (CPI)

16
Q

What is the taxable wage base for 2017 is…

A

$127,200.