Financial Aspects of Aging Flashcards
7 cards from real CSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Aspects of Aging flashcards as text
A 72-year-old retiree wants to minimize Required Minimum Distributions (RMDs). Which strategy is most appropriate?
Answer: Convert traditional IRA funds to a Roth IRA before age 73
Converting traditional IRA funds to a Roth IRA eliminates future RMDs since Roth IRAs are not subject to RMD rules during the owner's lifetime.
Which Medicare supplement (Medigap) plan covers 100% of Medicare Part A coinsurance and hospital costs after benefits are used up?
Answer: Plan G
Medigap Plan G covers 100% of Medicare Part A coinsurance and all hospital costs, making it the most comprehensive plan available to new enrollees after Plan F was discontinued.
A widow aged 60 wants to claim Social Security survivor benefits. What is the reduction she will face compared to full survivor benefits?
Answer: 28.5%
Widow(er)s who claim survivor benefits at age 60 receive approximately 71.5% of the deceased spouse's benefit, representing a 28.5% reduction.
Which type of trust is commonly used to protect assets from Medicaid spend-down while still allowing the grantor to receive income?
Answer: Medicaid Asset Protection Trust (MAPT)
A Medicaid Asset Protection Trust (MAPT) is an irrevocable trust that removes assets from the grantor's countable resources for Medicaid while allowing income to flow to the grantor.
What is the primary purpose of a 'spend-down' strategy in Medicaid planning?
Answer: To reduce countable assets below the Medicaid eligibility threshold
Medicaid spend-down involves reducing countable assets to the state-defined threshold so a person qualifies for Medicaid long-term care coverage.
A senior owns a home worth $350,000 and is considering a reverse mortgage. Which statement is TRUE about Home Equity Conversion Mortgages (HECMs)?
Answer: The loan becomes due when the last borrower permanently leaves the home
HECMs become due and payable when the last surviving borrower permanently leaves the home, whether through death, sale, or moving to a care facility.
Which Social Security claiming strategy was eliminated by the Bipartisan Budget Act of 2015?
Answer: File and suspend combined with restricted application for a married couple
The 'file and suspend' strategy combined with a spouse's restricted application to collect spousal benefits was eliminated by the Bipartisan Budget Act of 2015.