Social secuirty

Question 1

SS eligibly

Answer 1

40 quarters of coverage

Question 2

SS reduction of benefits

Answer 2

Benefits reduced for retiring before FRA 2 years: 10%
3 years: 20%
4 years: 25%
5 years: 30%

Question 3

SS increase in benefits

Answer 3

8% increase each year after FRA benefits delayed until age 70

Question 4

SS beneficiaries at RETIREMENT

Answer 4

Participant,
child under 18,
spouse with child under 16,
spouse at FRA

Question 5

SS beneficiaries for SURVIVORSHIP
Fully insured

Answer 5

Child under 18
Spouse with child under 16
Spouse at FRA
Ex spouse if not remarried
dependent parent

Question 6

SS beneficiary SURVIVORSHIP
Currently insured

Answer 6

Child under 18
Spouse with child under 16

Question 7

SS beneficiary for disability

Answer 7

Participant
Child under 18
Spouse with child under 16
Spouse at FRA

Question 8

Medicare

Answer 8

Health insurance for people 65 and older

Question 9

Medicare part A

Answer 9

Hospital insurance
Coverage: inpatient hospital care, skilled nursing care, home health care, hospice

Question 10

Medicare part B

Answer 10

Covers dr visits, lab tests, med equipment

Question 11

What’s excluded from Medicare

Answer 11

Part A: custodial care (LTC)
Part B: dental, cosmetic, hearing aids, eye exams, routine physicals

Question 12

Medicare part D

Answer 12

Drug coverage

Question 13

Taxation of Disability Insurance

Answer 13

• If EMPLOYEE pays premium with AFTER TAX dollars
  
  • premiums are NOT deductible
  • Benefits are TAX FREE
• If EMPLOYEE pays premiums with PRE TAX dollars
  
  • benefits are taxable
• If EMPLOYER pays the premium
  
  • premiums are deductible to employer
  • benefits are TAX FREE

Question 14

Taxation of Life Insurance Premiums

Answer 14

• premiums paid by employer are taxable income if employee coverage is OVER $50k
• insurance premiums paid my employer are deductible by employer

Question 15

when are annuities LIFO vs FIFO

Answer 15

Annuities BEFORE 1982 - FIFO
Annuities AFTER 1982 - LIFO

Question 16

Taxation of Social Security

Answer 16

up to 85% taxable
Thresholds based on AGI + non taxable interest + 50% of SS benefit
1st Hurdle: $32k MFJ, $25K Single
2nd Hurdle: $44k MFJ, $34k Single