The contributions that a worker makes to Social Security through his or her taxes Quizlet

-All the past surplus social security contributions have been split up by the federal government to pay for other government expenses

-Since 2008 (when Baby Boomers qualified for early retirement), the number of retirees has expanded rapidly and benefits being paid will increase rapidly

-In recent years, benefits being paid out of the social security fund have begun to exceed contributions to the fund; thus, the annual social security surplus will disappear

-Suppose that eventually the annual social security contributions into the fund amount to only 85% of annual social security benefits that need to be paid out; then the federal government will need to find new ways to finance the additional 15% of social security benefits

-Based on current birth rates and future retirement rates, it is projected that eventually there will be only two workers for each retiree

-With no changes to the system, eventually annual benefits paid to the retirees will greatly exceed contributions to the fund

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,012 solutions

Intermediate Accounting

14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

1,471 solutions

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Financial Accounting

4th EditionDon Herrmann, J. David Spiceland, Wayne Thomas

1,097 solutions

ch 7

56 terms

MarMaginn

ch 6

51 terms

MarMaginn

ch 5

63 terms

MarMaginn

ch 17

65 terms

MarMaginn

Intermediate Accounting

14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

1,471 solutions

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,012 solutions

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Financial Accounting

4th EditionDon Herrmann, J. David Spiceland, Wayne Thomas

1,097 solutions

Terms in this set (107)

What would be the difference in the tax consequences of an $18,000 withdrawal from a Roth IRA versus a traditional IRA if $15,000 represents long-term capital gains, $2,000 is short-term capital gains, and $1,000 is interest? Assume a tax rate of 30% and a capital gains tax rate of 10%.
A) $5,200 more in taxes with a traditional IRA B) $4,800 more in taxes with a traditional IRA C) $5,400 more in taxes with a traditional IRA D) $5,400 more in taxes with a Roth IRA

What is Social Security tax quizlet?

Who pays the Social Security tax quizlet?

What is Social Security benefits quizlet?

Where does funding for Social Security come from quizlet?