CFP - 5.2 Retirement SS Flashcards
(29 cards)
What is the total FICA tax amount?
15.3%
Breakdown the FICA taxes
15.3% total
- 65% employer
- 65% employee
- 2% SS
- 45% Medicare
0.9% Additional Medicare paid by employee
Fully insured SS coverage consists of _____ credits of coverage, or 1 credit for each year over age 21.
40
A worker earns one credit of coverage for every $______ of compensation earned, up to a maximum of _____ credits per year.
$1,320
4
Currently insured coverage is achieved if the worker has earned ____ credits of coverage during the ____ calendar quarters ending with death, most recently became eligible for disability benefits, or became entitled to retirement insurance benefits.
6
13
What is the SS lump sum death benefit amount?
$255
The maximum reduction of SS benefits is _____% for a worker whose full retirement age is 67.
30%
When taking SS benefits early, PIA is reduced _______ per month for the first _____ months, then ______ for any additional months.
5/9 of 1%
36
5/12 of 1%
The spouse at FRA is entitled to receive ____% of the worker’s PIA, otherwise it is ____%
50%
32.5 - 35%
A divorced spouse can receive retirement benefits if:
The ex-spouse is _____ or older.
The ex-spouse was married to the worker for _____ or more years and is ________.
The worker is age _____ (whether retired or not)
62
10, still unmarried
62
Are FICA and Medicare tax capped?
FICA is capped at $128,400, Medicare is not
A child of a SS insured worker can receive benefits if…
They are dependents of the retiree and:
- Unmarried, under 18 (under 19 if in HS)
- Any age if disabled before the age of 22
A caretaker spouse of retiree is eligible for SS at any age if the dependent child is under…
16
A caretaker parent is eligible at any age for a child disabled before the age of…
22
Survivors benefits can be paid to a surviving spouse age ____ or older.
60
Survivors benefits can be paid to a surviving disabled spouse age ____ or older.
50
SS disability benefit is equal to _____% of the worker’s PIA.
100%
Earnings test only applies to people who…
Have not yet reached normal retirement age
A person under NRA can earn up to $_______ without impacting benefits.
$17,040
A person under NRA earning more than $17,040 will have $_____ in benefits withheld for every $_____ in earnings over the limit.
$1 withheld for every $2 earned
A person who attains NRA in 2018 can earn up to $_______ in the period before the month in which NRA is reached. $____ in benefits will be withheld for every $_______ in earnings above the limit.
$45,360
$1 withheld for every $3 earned
How is SS taxed for single filers at the following provisional income levels:
$0 - $25k
$25k - $34k
$34+
0%
50%
85%
How is SS taxed for MFJ filers at the following provisional income levels:
$0 - $32k
$32k - $44k
$44+
0%
50%
85%
What is provisional income?
MAGI plus half of SS benefits
