Tag Archives: veritable

SSI, SSDI, and Special Needs Planning

There is a veritable alphabet soup used in the field of estate planning when it comes to acronyms. Some of these acronyms look very similar, and they may be used to represent programs and legal devices that accomplish similar aims, so there can be a lot of confusion. With this in mind, let’s look at the distinctions between SSDI and SSI. SSDI When you are working and paying taxes, one of the taxes that you pay is the FICA payroll tax. Some people scratch their heads when they see a significant chunk of their income going toward this tax. It can be frustrating to see that money go out the window. However, you can take heart, because it is going to benefit you in the long run if you are fortunate enough to reach the typical age of retirement. When you pay FICA taxes you are earning retirement credits, and you can accumulate up to four per year. When you have at least 40 retirement credits, you will qualify for Medicare coverage when you reach the age of 65. Medicare is a health insura

What Is the Difference Between SSDI and SSI?

You see a veritable jumble of acronyms referred to when you are looking into legal subjects. These acronyms make it easy to talk about concepts, programs and legal devices that have wordy titles. In this post we will look at two of them: SSDI and SSI. Social Security Disability Insurance When you are working, you invariably see a chunk of your pay devoted to something called FICA. This is the portion of your tax dollar that goes toward Medicare and Social Security. If you pay into the program sufficiently throughout your working career, you will become eligible when you reach the appropriate age. To qualify for Medicare and Social Security you accumulate retirement credits. You can earn up to four credits per year, and you become eligible when you have accrued at least 40 credits. In 2014, taxpayers get one credit for every $1200 that they earn. The age of eligibility for Medicare is 65, and your age of full eligibility for Social Security depends on your year of birth. People born be