Social Security & Government Benefits for Older Adults Flashcards
7 cards from real CFG practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Social Security & Government Benefits for Older Adults flashcards as text
The Social Security 'earnings test' applies to beneficiaries who claim benefits before full retirement age. What happens to the withheld benefits?
Answer: They are credited back and increase the monthly benefit at full retirement age
Benefits withheld due to the earnings test are credited back to the beneficiary in the form of a higher monthly benefit once they reach full retirement age.
What is the Social Security combined income threshold above which up to 85% of benefits may be subject to federal income tax for a single filer?
Answer: $34,000
For single filers with combined income above $34,000, up to 85% of Social Security benefits may be subject to federal income tax.
Which government program specifically provides federal health insurance coverage to individuals with disabilities who have received Social Security Disability Insurance (SSDI) for 24 months?
Answer: Medicare
After receiving SSDI for 24 months, disabled individuals automatically qualify for Medicare regardless of age.
When a divorced individual claims Social Security spousal benefits based on an ex-spouse's record, which condition must be met?
Answer: The marriage must have lasted at least 10 years
To claim divorced spousal benefits, the marriage must have lasted at least 10 years, the claimant must be unmarried, and both parties must be at least age 62.
The 'file and suspend' Social Security strategy was largely eliminated by the Bipartisan Budget Act of 2015. What restriction did this act impose?
Answer: A spouse cannot claim benefits on a suspended worker's record
Under the Bipartisan Budget Act of 2015, when a worker suspends benefits, all benefits based on that worker's record — including spousal benefits — are also suspended.
In the context of Social Security planning for older clients, what does the concept of 'break-even age' refer to?
Answer: The age at which total lifetime benefits from delaying equal total benefits from claiming early
The break-even age is the point at which cumulative lifetime benefits from a delayed claiming strategy equal those from earlier claiming, typically in the mid-to-late 70s.
Which of the following best describes the 'Special Enrollment Period' (SEP) for Medicare Part B?
Answer: An 8-month window to enroll after employer group health coverage ends
The SEP for Medicare Part B provides an 8-month window after employer-sponsored group health coverage ends for individuals who delayed enrollment due to active employment.