Social Security and Medicare: Maximizing Retirement Benefits / Edition 1

by Theodore J. Sarenski

Overview

The long-term future of the American Social Security system which provides retirement, disability, and survivor benefits to millions, is uncertain. This is triggering big concerns for many workers who are paying into the system and need to make decisions about their retirement. This book features real-world situations around Social Security and Medicare to help financial professionals provide better advise to their clients on their personal financial plans.

Key topics include:

• What Medicare will and will not do
• Managing Medicare gaps
• Analyzing the wide menu of Social Security benefits
• Social Security benefits for workers and families: retirement, survivor, disability, and death benefit
• Tax impact of Social Security premiums and benefits
• Impact of the 3.8 percent Medicare surtax on investment income
• Recent changes to the Medicare law

Product Details

ISBN-13:	9781119737254
Publisher:	Wiley
Publication date:	07/15/2020
Series:	AICPA
Pages:	192
Product dimensions:	8.40(w) x 10.80(h) x 0.70(d)

About the Author

Theodore J. Sarenski, CPA.PFS, CFP, is chief executive officer and president of Blue Ocean Strategic Capital. As the founding member of Blue Ocean Strategic Capital, he oversees all aspects of the company's operations, including the investment committee's management of portfolio assets. He has written articles for the Journal of Accountancy, the CPA Journal, the Journal of Taxation and the AICPA Wealth Management Insider. Sarenski has lectured at Syracuse University. In addition, he is a featured planner on Syracuse's NBC affiliate, WSTM-3, taking viewers' calls regarding financial planning and investment topics and offering planning concepts to the viewers on the nightly news program.

Table of Contents

Chapter 1 1-1

How the Social Security System Operates 1-1

FICA tax 1-4

Medicare tax 1-6

Medicare tax on earned income 1-7

Medicare tax on net investment income 1-10

Not everyone is covered under Social Security 1-13

Summary 1-15

Chapter 2 2-1

Benefit Eligibility 2-1

Summary 2-8

Chapter 3 3-1

Social Security Retirement Benefits 3-1

Retirement benefits 3-3

AIME 3-5

Calculating the PIA 3-7

Reduction in benefits for claiming benefits early 3-11

Delaying Social Security retirement benefits 3-14

Spousal retirement benefits 3-16

Working after retirement 3-23

Summary 3-25

Chapter 4 4-1

Social Security Survivors' Benefits 4-1

No benefits in the month of death 4-3

Children's benefits 4-10

Dependent parent's benefits 4-12

Summary 4-13

Chapter 5 5-1

Disability Income Benefits 5-1

Characteristics attributable to disabled-worker beneficiaries 5-3

Medical eligibility for Social Security disability income benefits 5-13

When SSDI benefits will end 5-20

Summary 5-23

Appendix A Chapter 5, A-1

OASDI and SSI Program Rates & Limits 2019 Chapter 5, A-1

Appendix B Chapter 5, B-1

OASDI and SSI Program Rates & Limits 2018 Chapter 5, B-1

Chapter 6 6-1

Taxation of Social Security Benefits 6-1

How benefits are reported 6-3

Summary 6-10

Chapter 7 7-1

Medicare 7-1

Original Medicare 7-3

Medicare premiums and coinsurance rates Medicare Part A 7-7

Current Medicare premiums and deductibles 7-8

Are the premiums tax-deductible? 7-17

Skilled nursing care under Medicare Part A 7-20

Home healthcare coverage Under Medicare Part A 7-22

Hospice coverage Under Medicare Part A 7-25

Medicare Part B coverage 7-27

Medicare Part C Advantage plans 7-29

Medicare Part D - Prescription drugs 7-31

Medicare supplemental (Medigap) insurance 7-34

Summary 7-38

Chapter 8 8-1

The Future of Social Security and Medicare 8-1

The system is strained 8-2

Fixing the problems 8-9

Summary 8-11

Appendix A A-1

Fact Sheet A-1

Index Index 1

Solutions Solutions 1

Chapter 1 Solutions 1

Chapter 2 Solutions 2

Chapter 3 Solutions 3

Chapter 4 Solutions 4

Chapter 5 Solutions 6

Chapter 6 Solutions 8

Chapter 7 Solutions 9

Chapter 8 Solutions 11