Social Security & Medicare Planning Flashcards

Under the Government Pension Offset (GPO), a surviving spouse who receives a $900/month non-covered government pension will have their Social Security survivor benefit reduced by:

Answer: $600

The GPO reduces Social Security spousal or survivor benefits by two-thirds of the non-covered government pension, so 2/3 × $900 = $600 reduction.

A client enrolls in Medicare Part B three months after their Initial Enrollment Period ended without a qualifying Special Enrollment Period. The Part B premium will be increased by what percentage per 12-month delayed period?

Answer: 10%

The Part B late enrollment penalty is 10% for each full 12-month period the individual was eligible but did not enroll, and this penalty generally applies for life.

For Social Security purposes, a divorced spouse can claim benefits on an ex-spouse's record if the marriage lasted at least:

Answer: 10 years

A divorced spouse must have been married for at least 10 years to be eligible for divorced spousal or survivor benefits on the ex-spouse's Social Security record.

Income-Related Monthly Adjustment Amounts (IRMAA) for Medicare Parts B and D are based on modified adjusted gross income from how many years prior?

Answer: 2 years prior

IRMAA surcharges are calculated using MAGI from two years prior; for 2024 premiums, the SSA uses 2022 tax return data.

A client has both Social Security and a pension from employment not covered by Social Security. Which rule may reduce their Social Security retirement benefit?

Answer: Windfall Elimination Provision (WEP)

The Windfall Elimination Provision (WEP) reduces the Social Security retirement or disability benefit of workers who also receive a pension from non-covered employment.

Which of the following is a key difference between Medicare Supplement (Medigap) plans and Medicare Advantage (Part C) plans?

Answer: Medigap plans can be used with any Medicare-accepting provider nationwide; Advantage plans typically use networks

Medigap plans allow beneficiaries to see any provider that accepts Medicare nationwide, while Medicare Advantage plans generally restrict enrollees to a network of providers.

Social Security benefits become taxable at what income threshold (combined income) for a single filer in 2024?

Answer: $25,000

For single filers, up to 50% of Social Security benefits may be taxable when combined income (AGI + nontaxable interest + half of SS benefits) exceeds $25,000.