RMA Social Security & Medicare Benefits 5

Question 1

How many years of indexed earnings does the Social Security Administration use to calculate a worker's average indexed monthly earnings (AIME)?

Accepted Answer

35 highest years

Answer

AIME is based on the worker's 35 highest years of indexed earnings, with zeros filling any missing years.

Question 2

In the calendar year a client reaches full retirement age, how are benefits withheld under the earnings test for earnings above the higher annual limit?

Accepted Answer

$1 for every $3 earned

Answer

In the year of reaching FRA, $1 is withheld for every $3 above the higher limit, counting only earnings before the FRA month.

Question 3

What is the maximum percentage of a client's Social Security benefits that can be included in federal taxable income?

Accepted Answer

85%

Answer

Depending on provisional income, up to 85% of Social Security benefits may be subject to federal income tax.

Question 4

A client stops working at 67 and loses employer group health coverage based on current employment. How long is the Special Enrollment Period to sign up for Part B without penalty?

Accepted Answer

8 months

Answer

The Part B Special Enrollment Period lasts 8 months after employment or the employment-based coverage ends, whichever comes first.

Question 5

A client at full retirement age voluntarily suspends retirement benefits. What happens to the benefit their spouse receives on the client's record?

Accepted Answer

It is also suspended

Answer

Since the Bipartisan Budget Act of 2015, a voluntary suspension also suspends benefits payable to others on the worker's record (except a divorced spouse).

RMA Practice Test

RMA Practice Test

RMA Social Security & Medicare Benefits 5