Social Security
Social Security benefits are subject to federal income tax if the beneficiary files an individual tax return and his or her annual income is greater than what?
$25,000
Joint filers will pay federal income tax on their Social Security benefits if their income exceeds what?
$32,000
What year was the Social Security program signed into law?
1935 by President Roosevelt.
The surviving spouse of a fully insured deceased worker without dependent children is eligible for Social Security survivor benefits as early as what age?
60, however, benefits are reduced if taken prior to age 65.
The primary insurance amount determines the full amount of retirement benefits for an eligible person at what age?
65
The underage child of a deceased worker will be given what percent of the Primary Insurance Amount?
75%
About how many years does it take to accrue a total of 40 quarters of credit?
About 10 Years
How is Social Security funded?
By payroll taxes collected from employees, employers, and those who are self-employed.
If a worker has earned at least 6 quarters of coverage in the 13 quarters immediately preceding death or disability, they are considered to be what?
Currently Insured.
"The inability to engage in any gainful activity by reason of any medically determinable physical or mental impairment which has lasted, or could be expected to last, for a continuous period of 12 months or result in death" is known as what?
Disability
What is the term for when an individual is eligible for two retirement income benefits but is only allowed to collect one?
Dual Benefit Liability
The age at which retirement benefits are equal to the covered workers PIA is known as what?
Full Retirement Age (FRA)
What two types of insured statuses qualify individuals for Social Security benefits?
Fully Insured and Currently Insured.
If a worker has earned the required number of quarters (40 quarters) of coverage they are considered to be what?
Fully Insured.
What does Medicare Part A cover
Hospital Insurance .
What does Medicare Part C cover?
Medicare Advantage.
What does Medicare Part D cover?
Prescription Drug Plans
What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive?
Primary Insurance Amount or PIA
What does Medicare Part B cover?
Supplementary Medical Insurance.
The period of time from the insured's death until the surviving spouse is permitted to receive retirement income benefits is known as what?
The Blackout Period
True or False: An individual collecting retirement income benefits at full retirement age is still allowed to work, and there is no longer any reduction or offset from Social Security income.
True
True or False: Benefits are paid to the children of a deceased worker during the blackout period until the youngest child reaches age 18.
True
True or False: Social Security was established during the great depression to assist the masses of people who could not afford to sustain their way of life because of unemployment, disability, illness, old age, or death.
True
True or False: The lump sum death benefit is $255 and has been capped at that amount for over 60 years.
True
True or False: Once a worker is eligible, he or she must satisfy a five month waiting period before benefits are payable.
True: Payments would begin in the sixth month.
True or False: Railroad workers are not eligible to participate in Social Security.
True: They are covered under a separate federal program called the railroad retirement system.
True or False: Fully insured status alone does not provide for disability benefits.
True: This benefit is provided only if a worker is fully insured and meets the definition of disability.
What are Social Security benefits based on?
What an individual worker has contributed to the program.