RP & EB Chapter 11

List and describe the six major categories of benefits administered by the social security association

Retirement Benefits, Disability benefits, family benefits, survivors benefits, Medicare, Supplemental Security Income Benefits

How are Social Security funds collected

Deducted from payroll

What individuals are covered workers under the social security system

Individuals who have worked 10 years contributing to the SS pool (not working under the table)

List the beneficiaries of social security benefits

Disabled person under 65, Retired person 62 or older, spouse of a retired/disabled person who is at least 62 - pg 585

How is a person's social security retirement benefit calculated

The SSA calculates a person's Average indexed monthly earnings during the 35 years the applicant earned the most $. SSA then applies a formula to these earning to come up with a person's retirement benefits

How does retiring early or retiring late affect the calculation of social security benefits

Early - SS benefit is lower, Late- SS benefit is higher

How are SS benefits taxed

Depends on the recipients MAGI. No tax up to 25k, 50% 25k-34k and 85% above 34k. MFJ - Nothing up to 32k, 50% between 32-44, 85% over that

What other benefits are available from Social Security other than retirement benefits

Disability, Family Benefits, Survivor's Benefits

Discuss the maximum family benefit

When a person dies, the deceased's survivors receive a percentage of the deceased's benefits ranging from 75-100%. There is a limit on what a family can receive, and that is called the maximum family benefit

What social security benefits does Medicare provide

Health Insurance for everyone 65 and older, and those who are disabled and on SS below 65

Descirbe supplemental security income benefits and when they are available

Makes monthly payments to those with low income or assets. to receive SSI, the beneficiary must be 65 and either disabled or blind

How does marriage or divorce affect SS benefits

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