Cwmc Module 27: Social Security Competency Test

Approved & Edited by ProProfs Editorial Team
The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.
Learn about Our Editorial Process
| By Alice Whinnery
A
Alice Whinnery
Community Contributor
Quizzes Created: 20 | Total Attempts: 1,979
Questions: 9 | Attempts: 106

SettingsSettingsSettings
Cwmc Module 27: Social Security Competency Test - Quiz


This quiz is part of LFE Institute's CWMC (Certified Workplace Money Coaching) course. It will test your proficiency in the Social Security Module (Module 27) of the program. The questions are all multiple choice, and are designed to be a review of this Module. Let LFE know when you've successfully completed this test and are ready to begin the next Module.
Correct answers required for passing grade: 8/9


Questions and Answers
  • 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.

    Rate this question:

  • 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.

    Rate this question:

  • 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.

    Rate this question:

  • 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.

    Rate this question:

  • 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.

    Rate this question:

  • 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.

    Rate this question:

  • 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.

    Rate this question:

  • 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.

    Rate this question:

  • 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.

    Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Feb 19, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 27, 2009
    Quiz Created by
    Alice Whinnery
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.