Final answer:
Harry's reduced retirement benefits, which he begins to receive at age 62, will not increase when he reaches the normal retirement age. They are permanently reduced and subject to federal income taxes. The correct answer is Harry's benefits remain the same when he reaches the normal retirement age.
option e is the correct
Step-by-step explanation:
The question you're asking about concerns Harry's reduced retirement benefits he starts receiving at age 62 and what happens to these benefits when he reaches normal retirement age. According to the information available and current Social Security regulations, when a person opts to take retirement benefits before their full retirement age (which is 67 for anyone born after 1959), the benefits are permanently reduced.
Once you start receiving these early retirement benefits, they do not increase when you reach the normal retirement age. Therefore, the correct answer to your question is that Harry's benefits will remain the same when he reaches the normal retirement age.
It is important to note that while Social Security benefits provide a crucial source of income for retirees, they are indeed subject to federal income taxes depending on your overall income level. Furthermore, these reduced benefits are not deducted from future benefits after age 67; rather, the reduction is a result of taking benefits early. These benefits also do not increase the tax deductions available to Harry.