Social Security

Question 1

3 things Social Security provides

Answer 1

1. Retirement Income
2. Survivor Benefits
3. Disability Benefits

Question 2

What does FICA stand for? What does it do?

Answer 2

Federal Insurance Contributions Act

(Authorizes taxes that fund SS and Medicare)

Question 3

3 Sources of FICA Taxes

Answer 3

Employees - 7.65%

Employers - 7.65%

Self Employed - 15.3% (Both)

Question 4

How many SS credits can one earn in a year?

Answer 4

4

Question 5

For SS retirement benefits, how many credits must be earned?

Answer 5

40 (ten years)

Question 6

True or False

A spouse can qualify for SS retirement based on their work history OR as the spouse of a retired worker receiving SS retirement benefits

Answer 6

True; A spouse can get up to 50% of the benefit of full SS earning spouse or their own SS benefit. Whichever one is higher.

Question 7

What does Normal Retirement Age mean?

Answer 7

It’s the age when a retiree is eligible to receive 100% of their Primary Insurance Amount (PIA)

Question 7

True or False

A divorced spouse can earn retirement benefits based on SS record of former spouse

Answer 7

True; Must have been married 10 years and be at least 62 yrs old

Question 8

Primary Insurance Amount (PIA)

Answer 8

The 100% or full benefit amount that an insured person is eligible to receive at Normal Retirement Age

Question 9

True or False

A person may take “early retirement” Social Security Benefits as early as age 60

Answer 9

False; the youngest age for early retirement is 62

Question 10

What is the maximum age a person can work while also maximizing Social Security benefits?

Answer 10

70 years old

Question 11

The SSA’s definition of disability (to qualify for SS disability benefits)

Answer 11

The inability to engage in ANY substantial gainful activity by reason of a medically determinable physical or mental impairment

Question 12

Persons who qualify for SSDI benefits and ___ become eligible for Medicare as long as they continue to be disabled.

Answer 12

receive payments for 24 months

Question 13

3 types of Disability Benefits from Social Security

Answer 13

1. Social Security Disability Insurance
   -monthly cash payments based on worker’s earnings history
2. Supplemental Security Income
   -no prior work requirements; limited applicability
3. Medicare

Question 14

Who beyond the retired or disabled worker is eligible to receive Social Security Benefits? (3 types of people)

Answer 14

1. Spouse of retired/disabled worker
   -must be 62, or
   -caring for child under 16 or who was disabled before 22
2. Former spouse of retired/disabled worker
   -must be 62, unmarried, & marriage must have 10 years, or
   -any age caring for child (under 16; disabled before 22)
3. Unmarried child of worker
   -under 18 (or 19 if in high school)
   -disabled before 22

Question 15

How long is the waiting period for SSDI benefits to begin?

Answer 15

5 months

Question 16

How much (%) is the maximum Family Benefit Limit generally?

Answer 16

150%-180% of the amount the worker would receive at normal retirement age (FBL includes the benefit paid to the worker)

Question 17

True or False

In order to qualify for Social Security disability benefits, the individual must have attained fully insured status

Answer 17

False; not fully insured status – disability insured status (not the same)

Question 18

What does “currently insured” for survivorship benefits mean?

Answer 18

Has earned some credits but not enough to be “fully insured”

Question 19

True or False

Unlike retirement benefits, the number of credits required to be fully insured for survivorship purposes depends on the age at which the worker died

Answer 19

True

Question 20

Persons who may be eligible for survivorship benefits at the death of a fully insured worker include the following (4 things)

Answer 20

1. Current spouse
2. Former spouse
3. Unmarried dependent children
4. Dependent parents

Question 21

True or False

Retirement, disability, and survivorship monthly benefits are indexed for inflation through the use of cost of living adjustments

Answer 21

True

Question 22

Up to what percentage of Social Security benefits can be subject to income taxation?

Answer 22

85%