Archives for Retirement

The Rules Are Changing For 401(k)s In 2020

The Rules Are Changing For 401(k)s In 2020

December 18, 2019

The Rules Are Changing For Your 401(k) In 2020 If you’re still working and contributing to a 401(k) or similar workplace retirement plan, there is some good news for the upcoming year. If you’re under age 50, the amount you can contribute to your 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is now $19,500 for 2020—a $500 increase over 2019. Additionally, for those who are age 50 or over by December 31, 2020, the catch-up amount is now $6,500, up by $500 (and the first increase since 2015). Keep in mind that you can still
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Are you monitoring your Social Security statement?

Are you monitoring your Social Security statement?

November 25, 2019

Did you know that Americans have the ability to request and view their Social Security statement? Monitoring your account is an important piece of the retirement puzzle, and checking your statement is essential to ensuring your future benefits accurately reflect the earnings that you have accumulated throughout your working life.1 Originally, the Social Security Administration (SSA) would send statements periodically via mail with account information. With modern technology advancements, the SSA made the change from mailing statements to delivering statements electronically. While most may find that digital access to your information is a greater convenience, a report by the SSA
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The IRA Had a Birthday Last Month

The IRA Had a Birthday Last Month

October 24, 2019

The IRA can provide many gifts as part of a comprehensive retirement plan. The Individual Retirement Account (IRA) turned 45 on Labor Day. On September 2, 1974, the Employee Retirement Income Security Act, or ERISA, was enacted into law, introducing broad safeguards to protect employee savings in both defined benefit plans like pensions, and defined contribution plans. The intent of Congress in initially establishing IRAs was to provide a tax-advantaged retirement savings plan for those workers at businesses that weren’t able to offer pensions. The IRA also made it possible to preserve the tax-deferred status of qualified plan assets when
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Annual Medicare Open Enrollment Begins October 15 and Runs Through December 7

Annual Medicare Open Enrollment Begins October 15 and Runs Through December 7

September 24, 2019

    If you’re already enrolled in Medicare it may be time to evaluate your current coverage, make changes or switch plans during the open enrollment period from October 15 through December 7. If you have a Medicare Prescription Drug Plan, and are considering making changes from Original Medicare (Parts A and B) to a Medicare Advantage Plan, or vice versa, now is your chance to make changes or enroll. Medicare health and drug plans are allowed to make changes to their offerings each year, including changes to costs, coverage, and what pharmacies and providers are in their network. If
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Make Room for Rising Healthcare Costs as Part of Your Retirement Planning

Make Room for Rising Healthcare Costs as Part of Your Retirement Planning

August 19, 2019

  Does your retirement plan include strategies to plan for, manage, and even reduce healthcare costs in retirement? It is projected that an average healthy 65-year-old couple retiring this year will incur total lifetime healthcare costs of $387,644 in today’s dollars, according to research by HealthView Services, a provider of retirement healthcare, long-term care and Social Security optimization tools for the financial services industry. The figures were released in early July. To no surprise, as the couple ages, costs will be significantly higher later in retirement than at the beginning. In the first year of retirement, the couple’s total annual
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Congress Looks to Provide More Options for Retirement Savers

Congress Looks to Provide More Options for Retirement Savers

July 22, 2019

While changes to traditional IRAs, RMDs offer some benefits, there are tradeoffs.   Broad proposals are in the works in the retirement savings arena to ease rules on tax-deferred savings vehicles, make it easier for employers to offer 401(k)-type savings plans and also convert balances into annuities for lifetime income. In late May, the House of Representatives overwhelmingly passed the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE). Key provisions within the SECURE Act offer more flexibility for when distributions would have to be taken out of tax-deferred accounts. On the flip side, the Act takes direct
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What’s the difference between an IRA and a Roth IRA?

What’s the difference between an IRA and a Roth IRA?

May 21, 2019

Common financial wisdom tells us that as a paid member of the American workforce, you should contribute the maximum to your 401(k), 403(b), 457(b) or similar retirement plan, especially if your organization matches a percentage of your contributions. But not every company has one of these plans. As an individual taxpayer with earned income, you have other options available to you in order to save for retirement, including the IRA or “Individual Retirement Account.”   An IRA is a type of account which acts as a shell or holder. Within the IRA, you can invest in many different types of
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