What happens to the surplus payroll taxes generated by Social Security?
A) The surplus money is deposited into individual workers' personal savings accounts
B) The surplus money is used to buy U.S. Treasury notes
C) The surplus money is deposited into supplemental retirement accounts for current beneficiaries
D) The surplus money is deposited into the General Fund
E) None of the above

Question

Quizplus · Accepted Answer

The surplus payroll taxes generated by Social Security are used to buy U.S. Treasury notes, essentially loaning the money to the federal government. This creates a surplus within the Social Security Trust Fund, which can be drawn upon in the future to pay for benefits if payroll taxes collected in a given year are not enough to cover the cost of benefits. The surplus funds in the Social Security Trust Fund are not deposited into individual workers' accounts or used to supplement retirement accounts for current beneficiaries. The surplus funds are also not deposited into the General Fund.

What Happens to the Surplus Payroll Taxes Generated by Social