RFC Social Security & Medicare Planning 3 — Questions and Answers
Question 1: 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:
- $300
- $600 (Correct answer)
- $900
- $450
Correct 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.
Question 2: 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?
- 5%
- 10% (Correct answer)
- 20%
- 1%
Correct 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.
Question 3: For Social Security purposes, a divorced spouse can claim benefits on an ex-spouse's record if the marriage lasted at least:
- 5 years
- 7 years
- 10 years (Correct answer)
- 20 years
Correct 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.
Question 4: Income-Related Monthly Adjustment Amounts (IRMAA) for Medicare Parts B and D are based on modified adjusted gross income from how many years prior?
- Current year
- 1 year prior
- 2 years prior (Correct answer)
- 3 years prior
Correct answer: 2 years prior
IRMAA surcharges are calculated using MAGI from two years prior; for 2024 premiums, the SSA uses 2022 tax return data.
Question 5: 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?
- Government Pension Offset (GPO)
- Windfall Elimination Provision (WEP) (Correct answer)
- Earnings Test
- Delayed Retirement Credit reduction
Correct 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.
Question 6: Which of the following is a key difference between Medicare Supplement (Medigap) plans and Medicare Advantage (Part C) plans?
- Medigap plans include prescription drug coverage; Advantage plans do not
- Medigap plans can be used with any Medicare-accepting provider nationwide; Advantage plans typically use networks (Correct answer)
- Advantage plans are standardized across all insurers; Medigap plans vary by company
- Medigap plans are administered by private insurers under government contracts; Advantage plans are government-run
Correct 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.
Question 7: Social Security benefits become taxable at what income threshold (combined income) for a single filer in 2024?
- $15,000
- $25,000 (Correct answer)
- $32,000
- $44,000
Correct 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.
RFC Social Security & Medicare Planning 3
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: