Exam prep.xlsx

# Consider stacey from our previous examples recall

• Test Prep
• 39

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Consider Stacey from our previous examples. Recall that she has AIME of \$5,000 and a monthly benefit (PIA) of \$2,119.10 at her NRA (67). Stacey decides to retire and file for benefits on her 69th birthday. What would be her benefit under this scenario?

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PIA Permant Reduction Income Months till retirment Temp reduction Monthly benefit Consider Stacey from our previous examples. Recall that she has AIME of \$5,000 and a monthly benefit (PIA) of \$2,119.10 at her NRA (67). If she retires 30 months early, she will have a monthly reduction of \$353.18, which means a permanently reduced monthly benefit of \$1,765.92 (\$2,119.10 - \$353.18). Stacey decided to do some consulting just after she filed for benefits and she earned \$21,500 annually. What is her monthly Social Security benefit in the first year of her consulting?
210000 210000 250000 250000 297000 275000 275000 220000 220000 18333.3333333333

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3200 20 0.25 30 533.3333333333 75000 6250 6250 5000 1.50% 30 22 1650
5000 50% 30 24 2000 -1500 45 83 66 7% 204 0.0058333333 \$178,643.60 252 0.0058333333 (\$312.87)

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400000 50% 6% 18500 275000 6000 18500 24000 3.00% 8250 26,750 32,750 85000 100% 5% 18500 275000 4250 5.00% 4250 8,500 700000
50% 8% 18500 275000 6000 24500 4.00% 11000 35,500 700000 50% 8% 18500 275000 6000 24500 4.00% 11000 35,500 19,500 5.00% 6.25% 7.00% 7.00%

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75 15 13
60 38 87% 63% No Yes ? 50 20 20 Company B Identical 13% 13% 17% 17% 60% 21% 90% 51% 0 5.70% 25740 4.30% 102960 5.40% 128,700 5.70% <20% of TWB 20-80% of TWB 80-100% of TWB @ TWB

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128,700 5.70% 350,000 7% 19250 8339.1 105,000 5.40% 50.00% 350,000 6% 18,500 3.00% 8250 5100 31,850
Vesting for Defined Benefit plans 500 25 Vesting for Defined Contribution plans

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65 90 20000 12500 35 75 90 40 15 5500 115000 101000 121000 20000 1650 3300 5500 165000
189000 199000 10000 5500 11000 424000 78000 251000 5000 805.5 1313.6 0 2119.1 42.38% 2119.1 30 353.1833333333 0 353.1833333333 1765.9166666667

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2119.1 30 441.4791666667 0 441.4791666667 1677.6208333333 2119.1 67 69 2458.156
2119.1 353.18 21500 30 185.8333333333 1580.0866666667

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Year 1 210000 210000 Year 2 250000 250000 Year 3 297000 275000 Max: 275000 415(b) 200 220000 Stacey's An 220000 Monthly 18333.33
FAC 4800 Years of Service 25 Replacement Ratio 0.3 Cap 30 Monthly Benefit 1200 \$ Past 6 Years: 75000 3-year FAC: 6250 5-year FAC: 6250 FAC 5000 % FAC 1.50% Cap 30 Years service 22 Monthly Benefit: 1650

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FAC 5000 Replacement ratio 50% Cap 30 Years service 24 Monthly Benefit: 2000 PV (PMT) -1500 Current Age 45 life expectancy 83 retirement age 66 investment return 7% PV (N) 204 PV(I/Y) 0.0058333333 Value needed at retirement \$178,643.60 CPT (N): 252 CPT (I/Y): 0.0058333333 Monthly Company payment (\$312.87)
Salary 400000 Employer Match 50% Emplyer Cap 6% Salary Limit 18500 Employer Salary Limit 275000 Catch Up contribution 6000 Employee Total Under 50 18500 Employee Total Over 51 24000 Employer % Salary 3.00% Employer Total 8250 Total Under 50 26,750 Total Over 50 32,750 Salary 700000 Employer Match 50% Emplyer Cap 8% Salary Limit 18500 Employer Salary Limit 275000 Employee Total Under 50 18500 Employer % Salary 4.00% Employer Total 11000 Total Under 50 29,500 Salary 700000

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Employer Match 50% Emplyer Cap 8% Salary Limit 18500 Employer Salary Limit 275000 Catch Up contribution 6000 Employee Total Over 51 24500 Employer % Salary 4.00% Employer Total 11000 Total Over 50 35,500 Salary 700000 Employer Match 50% Emplyer Cap 8% Salary Limit 18500 Employer Salary Limit 275000 Catch Up contribution 6000 Employee Total Over 51 24500 Employer % Salary 4.00% Employer Total 11000 Total 401(k) contribution 35,500 Profit Sharing Plan contribution 19,500 NHCE 8.25% ADP 1.25 10.31% ADP 2.0 10.25% HCE 10.31%
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• Spring '14
• VOSS,JAMESA

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