Financial Planner

Category - Retirement Savings and Income Planning

Becky’s parents have died in a car crash, she is five. Her grandparents are 59 years old and now care for her. Granddad is considering taking on some work to earn a little extra money. He is wondering how an extra job may affect the benefits they receive for Becky’s care, what do you tell him about working?
  1. Any type of work will stop benefit eligibility.
  2. As long as he earns less than $7,005 per year, he is eligible for benefits.
  3. As long as he earns less than $14,160 per year, he is eligible for benefits.
  4. He is eligible for benefits regardless of the amount of income he earns.
Explanation
Answer: C - For a grandchild to be considered a child by grandparents after parents have died, they must not earn more than $14,160 per year to maintain benefit eligibility. This rule also applies for grandchildren who were legally adopted by the surviving spouse as well. However, once the grandparents are of retirement age, they can earn $37,680 without losing benefits as of 2009.
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