CWMC Module 27: Social Security Competency Test

1.

To be eligible to draw Social Security benefits, a person must:

A.

Be at least 62 years of age
B.

Have acquired at least 40 credits
C.

Be fully retired
D.

Be on Medicare
E.

Be married

Correct Answer
A. Be at least 62 years of age

Explanation
To be eligible to draw Social Security benefits, a person must be at least 62 years of age. This is because the Social Security Administration has set the minimum age requirement for individuals to start receiving benefits. The age of 62 is considered the earliest age at which individuals can begin receiving reduced benefits. However, it's important to note that waiting until full retirement age (usually between 66 and 67) can result in higher monthly benefit amounts.

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2.

Social Security survivor benefits can be paid to which of the following? (check all that apply)

A.

A disabled widow or widower as early at age 50
B.

Dependent parents age 62 or older
C.

Children who were disabled before age 22 and are still disabled
D.

Divorced spouses, under certain circumstances
E.

Anyone who cannot work

Correct Answer(s)
A. A disabled widow or widower as early at age 50
B. Dependent parents age 62 or older
C. Children who were disabled before age 22 and are still disabled
D. Divorced spouses, under certain circumstances

Explanation
Social Security survivor benefits can be paid to a disabled widow or widower as early as age 50, dependent parents age 62 or older, children who were disabled before age 22 and are still disabled, and divorced spouses under certain circumstances. These individuals are eligible to receive survivor benefits based on their relationship to the deceased individual and their specific circumstances.

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3.

When referring to Social Security, what is considered "full retirement age"?

A.

At the completion of 40 years of work
B.

At the completion of paying into the Social Security program for 40 years
C.

It depends on a person's date of birth
D.

Age 65
E.

Just depends when the individual retires

Correct Answer
C. It depends on a person's date of birth

Explanation
The "full retirement age" for Social Security benefits varies depending on a person's date of birth. It is not a fixed age such as 65. The Social Security Administration has a chart that determines the full retirement age based on the year of birth. This age is the point at which individuals can receive their full Social Security benefits without any reduction.

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4.

If a 68-year-old person receiving Social Security benefits returns to work, which of the following would be true?

A.

Earnings are exempt from FICA withholdings
B.

Benefit check is reduced by the amount of earnings
C.

50% of earnings are not subject to FICA withholdings
D.

A portion of the benefit may be taxable
E.

None of the income is taxable

Correct Answer
D. A portion of the benefit may be taxable

Explanation
If a 68-year-old person receiving Social Security benefits returns to work, a portion of the benefit may be taxable. This is because if the person's combined income (including their earnings and half of their Social Security benefits) exceeds a certain threshold, a portion of their Social Security benefits may become subject to federal income tax. The exact amount that is taxable depends on the individual's specific income level.

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5.

If a retired person has not reached full retirement age, is receiving Social Security benefits, and then returns to work, which of the following would be true?

A.

A portion of the benefit must be repaid
B.

A portion of the benefit may be taxable
C.

For every $2 benefit received, $1 must be repaid
D.

All of the above
E.

None of the above

Correct Answer
D. All of the above

Explanation
If a retired person has not reached full retirement age, is receiving Social Security benefits, and then returns to work, all of the following would be true: a portion of the benefit must be repaid, a portion of the benefit may be taxable, and for every $2 benefit received, $1 must be repaid.

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6.

Which of the following may be needed when applying for Social Security benefits? (check all that apply)

A.

Birth certificate
B.

Social Security card
C.

Tax returns
D.

Proof of U.S. citizenship or lawful immigration status
E.

Credit report

Correct Answer(s)
A. Birth certificate
B. Social Security card
D. Proof of U.S. citizenship or lawful immigration status

Explanation
When applying for Social Security benefits, several documents may be required to verify eligibility. A birth certificate is needed to confirm the applicant's date of birth. A Social Security card is necessary to provide the Social Security number. Proof of U.S. citizenship or lawful immigration status is essential to establish the individual's eligibility to receive benefits. Tax returns and credit reports are not typically required for applying for Social Security benefits.

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7.

The original intent of Social Security was to provide:

A.

Financial benefits for retired workers over age 65
B.

Payments for people released from poor houses
C.

Funds for people who have disabilities
D.

Benefits for survivors of deceased workers
E.

A comfortable living for every American over age 62

Correct Answer
A. Financial benefits for retired workers over age 65

Explanation
The original intent of Social Security was to provide financial benefits for retired workers over age 65. This means that the primary purpose of Social Security was to ensure that retired individuals who have reached the age of 65 receive financial support to help them meet their basic needs and maintain a decent standard of living. It was not intended to provide payments for people released from poor houses, funds for people with disabilities, benefits for survivors of deceased workers, or a comfortable living for every American over age 62.

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8.

When is the appropriate time for a person to apply for Social Security benefits if he/she is fully qualified to receive them? (check all that apply)

A.

On the person's 63rd birthday
B.

6 months prior to retiring from work
C.

3 months prior to when you want benefits to begin
D.

If disabled, as soon as possible
E.

When the person turns 70½

Correct Answer(s)
C. 3 months prior to when you want benefits to begin
D. If disabled, as soon as possible

Explanation
The appropriate time for a person to apply for Social Security benefits if they are fully qualified to receive them is 3 months prior to when they want the benefits to begin. This allows for the processing time of the application and ensures that the benefits will start when desired. Additionally, if the person is disabled, it is recommended to apply as soon as possible to begin receiving the necessary support.

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9.

Why should employers care if Money Coaches answer questions about Social Security for active employees? (check all that apply)

A.

Saves HR staff’s time so they don’t have to answer the questions
B.

Keeps employees’ from researching the answers on the job
C.

Helps answer questions employees have for their aging parents
D.

Makes it easier for employees to prepare for retirement
E.

Boosts employee participation in company's retirement plan since employees realize they can’t live solely on Social Security income

Correct Answer(s)
A. Saves HR staff’s time so they don’t have to answer the questions
B. Keeps employees’ from researching the answers on the job
C. Helps answer questions employees have for their aging parents
D. Makes it easier for employees to prepare for retirement
E. Boosts employee participation in company's retirement plan since employees realize they can’t live solely on Social Security income

Explanation
Money Coaches answering questions about Social Security for active employees can save HR staff's time by relieving them from answering these questions. It also prevents employees from researching the answers on the job, which can affect their productivity. Additionally, it helps employees answer questions their aging parents may have about Social Security, making it a valuable resource for them. Moreover, by providing information about Social Security and retirement planning, it makes it easier for employees to prepare for retirement. Lastly, it can boost employee participation in the company's retirement plan as they realize that relying solely on Social Security income may not be sufficient.

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Cwmc Module 27: Social Security Competency Test

To be eligible to draw Social Security benefits, a person must:

Social Security survivor benefits can be paid to which of the following? (check all that apply)

When referring to Social Security, what is considered "full retirement age"?

If a 68-year-old person receiving Social Security benefits returns to work, which of the following would be true?

If a retired person has not reached full retirement age, is receiving Social Security benefits, and then returns to work, which of the following would be true?

Which of the following may be needed when applying for Social Security benefits? (check all that apply)

The original intent of Social Security was to provide:

When is the appropriate time for a person to apply for Social Security benefits if he/she is fully qualified to receive them? (check all that apply)

Why should employers care if Money Coaches answer questions about Social Security for active employees? (check all that apply)