This document provides information about social security and retirement planning. It discusses how social security is funded through FICA taxes and the requirements to qualify for social security benefits, such as having 40 credits which is equivalent to 10 years of work. It also outlines the ages at which you can begin receiving reduced or full social security benefits and explains different retirement account options like 401ks, IRAs, and annuities to help save for retirement. The key takeaway is the importance of saving and planning early for retirement.

1. ESTATE PLANNING

2. SOCIAL SECURITY
Funded by FICA taxes
Federal Insurance
Contribution Act
You pay
6.2%
Employer Pays
6.2%

3. SOCIAL SECURITY
You pay
12.4%
If Self Employed:

4. HOW DO I QUALIFY FOR SS?
40 Credits (10 years) = Fully Insured
$1200 = 1 credit

5. Fully Insured = 40 credits
Currently insured = 6 credits in last
three years
Transitionally insured= age 72
without 40 credits
Not insured = Younger than 72 with
fewer than 6 credits

6. SOCIAL SECURITY ESTIMATE
www.ssa.gov/estimator

7. HOW OLD DO I HAVE TO BE?
67 = Full benefit age
May begin to receive benefits as early as age 62
Benefits reduced by 6%
May elect to delay to after age 67
Benefits increase of 8%
71

8. RETIREMENT NEST EGG

9. WOMEN AND RETIREMENT
• Do not earn as much
• Do not fully match employer 401k
contributions
• Live longer

10. TAX SHELTERED ACCOUNTS
Invest Pre-tax Money
Don’t pay taxes until you
withdraw money during
retirement.

11. EMPLOYER-SPONSORED
RETIREMENT PLANS
Qualified plans are approved by the IRS and
qualify for special tax treatment under the
regulations of the Employer Retirement
Income Security Act (ERISA)
ERISA Regulates employer sponsored plans

12. DEFINED-CONTRIBUTION PLAN
Lump-sum at retirement
Employees contribute a defined amount of
money each pay check
401k Private
Corporations

13. MORE PLANS
403(b) Nonprofit
Organizations
457 State and Local
Governments

14. CATCH-UP PROVISION
Age 50 or older
add an additional
$5500/year

15. ALTERNATE PLAN
Employee stock-ownership plan
(ESOP) = company donates stock to
a trust that is allocated to individual
employees

16. INDIVIDUAL RETIREMENT ACCOUNT
IRA’s = account to hold investments
• Contribute lump sum from another
IRA
• Contribute lump sum from another
qualified plan
• Annual contributions

17. SELF EMPLOYED RETIREMENT PLANS
 Keogh
 IRA’s
 SEP-IRA’s

18. ANNUITY
Insurance for
retirement
Joint-and-survivor annuity
Annuity for husband and wife

20. “Live like no one else
so that later you can
live like no one else!”
– Dave Ramsey