Section 831 of the Bipartisan Budget Act of 2015 addresses which of the following?

Phase out the file-and-suspend and restricted application Social Security claiming strategies

How someone’s full retirement benefit is calculated based on his/her earnings history

The Department of Defense spending budget

Phase out the file-and-suspend and restricted application Social Security claiming strategies

Section 831 helps wealthy people get more Social Security income

Section 831 of the BBA 2015 phases out which of the following over time?

Use of the restricted application to obtain spousal income while delaying own retirement benefit

Application of the file-and-suspend strategy

Strategies for couples and divorced retirees to potentially get more Social Security income

How many, and which years of earnings, are used to calculate the Social Security Benefit?

35 years of your highest earnings

35 years of your most recent earnings

30 years of your highest earnings

35 years of your highest earnings

30 years of your most recent earnings

Which of the following are not impacted by Section 831 of the BBA 2015?

Widow(er) benefits and claiming strategies

Phase out the file-and-suspend strategy

Phase out the restricted application (for spousal benefit)

Widow(er) benefits and claiming strategies

Divorced benefits and claiming strategies

With respect to the BBA 2015, which of the following are correct age(s) and dates for phase-out triggers of the two Social Security claiming techniques?

Age 66 by April 29, 2016 for file-and-suspend benefits

Age 62 by end of December 2015 for use of restricted application for spousal benefit

Age 62 by April 29, 2016 for use of restricted application for spousal benefit

The file-and-suspend claiming strategy:

Will no longer be available to retirees who were younger than 66 by April 29, 2016.

Is a claiming strategy that allows couples to collect spousal Social Security income while allowing their own retirement benefit to increase due to delayed retirement credits.

Was first used after passage of the Senior Citizens Freedom to Work Act of 2000.

Which of the following phrases best mirrors President Obama's 2015 budget proposal reason for including and passing Section 831 within the BBA 2015?

To prevent duplicative or excessive Social Security benefit payments

To provide more Americans with the opportunity to get more Social Security payments

To provide non-wage earning spouses ways to get more Security payments

To reduce excessive payments on widows(ers) benefits

How Well Do You Understand Social Security And The 2015 Income Claiming Rule Changes?

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| Written by Teresa Acosta

Teresa Acosta

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Quizzes Created: 3 | Total Attempts: 334

Questions: 10 | Attempts: 71 | Updated: Mar 18, 2023

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How Well Do You Understand Social Security And The 2015 Income Claiming Rule Changes? - Quiz

Note: "Bipartisan Budget Act of 2015" abbreviated as "BBA 2015"

Questions and Answers

1.

Section 831 of the Bipartisan Budget Act of 2015 addresses which of the following?
- A.
  
  How someone’s full retirement benefit is calculated based on his/her earnings history
- B.
  
  The Department of Defense spending budget
- C.
  
  Phase out the file-and-suspend and restricted application Social Security claiming strategies
- D.
  
  Section 831 helps wealthy people get more Social Security income
Correct Answer
C. Phase out the file-and-suspend and restricted application Social Security claiming strategies

Explanation
Section 831 of the Bipartisan Budget Act of 2015 addresses the phase out of the file-and-suspend and restricted application Social Security claiming strategies. These strategies allowed individuals to delay their Social Security benefits while still allowing their spouse to claim spousal benefits. However, Section 831 of the Act eliminated these strategies, affecting how individuals can claim and maximize their Social Security benefits.

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2.

Section 831 of the BBA 2015 phases out which of the following over time?
- A.
  
  Use of the restricted application to obtain spousal income while delaying own retirement benefit
- B.
  
  Application of the file-and-suspend strategy
- C.
  
  Strategies for couples and divorced retirees to potentially get more Social Security income
- D.
  
  All of the above are correct
Correct Answer
D. All of the above are correct

Explanation
Section 831 of the BBA 2015 phases out the use of the restricted application to obtain spousal income while delaying one's own retirement benefit, the application of the file-and-suspend strategy, and strategies for couples and divorced retirees to potentially get more Social Security income over time. This means that these strategies will no longer be available or will be gradually eliminated as the section is implemented.

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3.

How many, and which years of earnings, are used to calculate the Social Security Benefit?
- A.
  
  35 years of your most recent earnings
- B.
  
  30 years of your highest earnings
- C.
  
  35 years of your highest earnings
- D.
  
  30 years of your most recent earnings
Correct Answer
C. 35 years of your highest earnings

Explanation
The Social Security Benefit is calculated using 35 years of your highest earnings. This means that the Social Security Administration looks at your earnings history for the 35 years in which you earned the most money. They use these earnings to calculate your average monthly earnings, which is then used to determine your Social Security benefit amount.

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4.

If you file for Social Security and start collecting benefits, but then feel you have made a mistake, how long do you have to withdraw your application and pay the benefits back?
- A.
  
  2 years
- B.
  
  5 years
- C.
  
  1 year
- D.
  
  3 years
Correct Answer
C. 1 year

Explanation
If you file for Social Security and start collecting benefits, you have 1 year to withdraw your application and pay the benefits back. This means that if you realize you made a mistake in applying for Social Security, you have a one-year window to reverse the decision and return the benefits you have received. After this one-year period, it becomes more difficult to undo the application and repay the benefits.

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5.

If divorced, what is the minimum amount of years you must have been married to collect an ex-spousal benefit?
- A.
  
  5 years
- B.
  
  2 years
- C.
  
  10 years
- D.
  
  12 years
Correct Answer
C. 10 years

Explanation
To collect an ex-spousal benefit, one must have been married for a minimum of 10 years. This requirement ensures that the marriage was of a significant duration, providing some level of financial interdependence between the spouses. It also aims to prevent individuals from seeking benefits from short-term marriages. Therefore, to be eligible for an ex-spousal benefit, a marriage must have lasted at least 10 years.

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6.

When were Social Security income benefits first taxed and by how much?
- A.
  
  1994, up to 85% could be taxed
- B.
  
  1983, up to 50% could be taxed
- C.
  
  1983, up to 85% could be taxed
- D.
  
  1994, up to 50% could be taxed
Correct Answer
B. 1983, up to 50% could be taxed

Explanation
In 1983, the Social Security income benefits were first taxed, and individuals could be taxed up to 50% of their benefits. This means that half of the Social Security income received by individuals was subject to taxation.

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7.

Which of the following are not impacted by Section 831 of the BBA 2015?
- A.
  
  Phase out the file-and-suspend strategy
- B.
  
  Phase out the restricted application (for spousal benefit)
- C.
  
  Widow(er) benefits and claiming strategies
- D.
  
  Divorced benefits and claiming strategies
Correct Answer
C. Widow(er) benefits and claiming strategies

Explanation
Section 831 of the BBA 2015 impacts the file-and-suspend strategy, the restricted application for spousal benefits, and divorced benefits and claiming strategies. However, it does not impact widow(er) benefits and claiming strategies.

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8.

With respect to the BBA 2015, which of the following are correct age(s) and dates for phase-out triggers of the two Social Security claiming techniques?
- A.
  
  Age 66 by April 29, 2016 for file-and-suspend benefits
- B.
  
  Age 62 by end of December 2015 for use of restricted application for spousal benefit
- C.
  
  Age 62 by April 29, 2016 for use of restricted application for spousal benefit
- D.
  
  Both A and B
Correct Answer
D. Both A and B

Explanation
Both A and B are correct. According to the BBA 2015, individuals must be at least 66 years old by April 29, 2016, in order to be eligible for file-and-suspend benefits. Additionally, individuals must be 62 years old by the end of December 2015 to use the restricted application for spousal benefits. Therefore, both A and B provide the correct ages and dates for the phase-out triggers of these two Social Security claiming techniques.

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9.

The file-and-suspend claiming strategy:
- A.
  
  Will no longer be available to retirees who were younger than 66 by April 29, 2016.
- B.
  
  Is a claiming strategy that allows couples to collect spousal Social Security income while allowing their own retirement benefit to increase due to delayed retirement credits.
- C.
  
  Was first used after passage of the Senior Citizens Freedom to Work Act of 2000.
- D.
  
  All of the above
Correct Answer
D. All of the above

Explanation
The correct answer is "All of the above" because all three statements mentioned in the question are true. The file-and-suspend claiming strategy will no longer be available to retirees who were younger than 66 by April 29, 2016. It is a claiming strategy that allows couples to collect spousal Social Security income while allowing their own retirement benefit to increase due to delayed retirement credits. Additionally, it was first used after the passage of the Senior Citizens Freedom to Work Act of 2000.

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10.

Which of the following phrases best mirrors President Obama's 2015 budget proposal reason for including and passing Section 831 within the BBA 2015?
- A.
  
  To prevent duplicative or excessive Social Security benefit payments
- B.
  
  To provide more Americans with the opportunity to get more Social Security payments
- C.
  
  To provide non-wage earning spouses ways to get more Security payments
- D.
  
  To reduce excessive payments on widows(ers) benefits
Correct Answer
A. To prevent duplicative or excessive Social Security benefit payments

Explanation
The correct answer is "To prevent duplicative or excessive Social Security benefit payments." This phrase mirrors President Obama's 2015 budget proposal reason for including and passing Section 831 within the BBA 2015 because it highlights the goal of preventing duplicate or excessive payments, which aligns with the objective of the budget proposal.

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