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one involves means test the other does not one involves means test the other does not
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They are called Transfer Payments
No ... those of use who are quickly approaching those golden years should not have to worry if those programs are going to be funded or not. Put all Congressmen on the s…ame plan, and I assure you there will be no annual authorization required.
In simplest terms, it is a privately held retirement plan which rewards you for doing something that you should be doing anyway....saving for your old age. Social Security is… mandatory. An IRA is voluntary.With Social Security, your contributions are mandatory. With an IRA, you control how much you contribute.With an IRA, you choose what you want your money invested in and your contributions are tax exempt.With an IRA you can designate one or more beneficiaries, and leave it to whomever you choose.Social Security pays barely enough to survive, which is why many retirees have part-time jobs to make ends meet. A properly managed IRA can set you up in comfort for your Golden Years, that is, if you have enough extra income to contribute.There is one catch. If you take your money out of the IRA before retirement you will pay a 37% penalty for early withdrawal. There is also a Roth IRA in which the contributions are made after income taxes are paid and the money can be withdrawn at any time, tax free. A regular IRA is not tax free, but it is tax deferred. By deferring the taxes until retirement age, the investment grows at a much faster rate. I began mine at age 25, and I wish I had done it at 18, but how many 18-year-olds think about retirement?
Acceptance of Medicare has no effect on your eligibility for Social Security.
That depends on what kind of coverage you elect. Medicare Part A (hospitalization) is paid out of the FICA contributions you made during your working years, so there is no c…ost to you when you retire or become disabled. Medicare Part B (government-administered outpatient, doctors' visits, etc.) costs $110.50 per month in 2010 and 2011, or Medicare Part C (Medicare Advantage Plans, run by private insurance companies) costs $110.50 and up. Medicare beneficiaries may choose either Part B or Part C or neither, but not both. Medicare Part D (government-subsidized drug benefit) costs vary from less than $20 per month to $130 per month or more, depending on coverage offered. Many Medicare Advantage Plans provide at least some drug coverage. If you decide to carry Medicare Parts B, C, or D, the monthly premium(s) is/are deducted from your benefit check. Many low-income individuals qualify for government subsidies to pay part or all of Parts B and D coverage.
For most persons, Medicare Part A (Hospital Insurance Benefits, or HIB) is free. Medicare Part B (Supplemental Medical Insurance Benefits, or SMIB) premiums are typically ded…ucted from one's Social Security benefits.
July, 1965. President Harry S. Truman was given the first Medicare card issued.
Medicare, which is an insurance program, was enacted through a bipartisan vote of Congress, with the support of the administration of President Lyndon Johnson.
The (OASDI) Old Age Survivor and Disability Insurance (FICA) (social security and Medicare taxes) all mean the same tax.
Payroll taxes on employers and employees.
Social Security provides cash payments, and Medicare provides health care, to citizens age 65 and older or permanently and totally disabled. Both programs are funded by payrol…l taxes.
Social Security provides cash payments for persons who are at least age 62 and those who are "permanently and totally disabled." Medicare provides health insurance for persons… over age 65 and persons who are "permanently and totally disabled." For either program, the individual must have 40 credits of "covered employment" (i.e., calendar quarters during which they paid into the program). Both are funded by payroll taxes and administered by the Federal government.
That depends on your definition of "socialist." Social Security and Medicare are financed by participants and their employers, so in that sense are probably not socialist. Med…icaid, which is financed by public funds (taxes and borrowed money), could probably be considered socialist. However, in that sense, fire protection and law enforcement could also be considered socialist.
designed to help the elderly
Help older Americans pay for health care