Which of the following statements concerning the reduction of Social Security benefits is (are) correct?

Besides early retirement, there are two other situations in which beneficiaries can have their benefits reduced: through the retirement earnings limitations test and through taxation of benefits.

A person generally can continue to work even though he or she is considered "retired" under Social Security; however, those earnings for a person under normal retirement age must not exceed certain limitations.

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Question

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Zechariah Curtis

23 February, 12:51

Which of the following statements concerning the reduction of Social Security benefits is (are) correct?

Besides early retirement, there are two other situations in which beneficiaries can have their benefits reduced: through the retirement earnings limitations test and through taxation of benefits.

A person generally can continue to work even though he or she is considered "retired" under Social Security; however, those earnings for a person under normal retirement age must not exceed certain limitations.

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

+3

Answers (1)

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Eva Weaver · Answer 1

b) 2 only

Explanation:

The Social Security Act set up the Old Age and Survivors Insurance Trust Fund (OASI), from which retired individuals receive their payments. These benefits are subject to taxes, and can be withheld if a debt is incurred or an over-payment occurs.