Get to know your 401k plan rules

Have you ever heard the quote by Peter Lynch, “Behind every stock is a company. Find out what it’s doing?” Well, I am going to alter that and say, behind every 401k there is a plan. Find out what is in it. Read it. I am speaking from experience here. Knowing your 401k plan rules …

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Social Security offices reopen to the public

In another sign that the pandemic is receding, and life is returning to normal, Social Security Administration (SSA) offices reopened to the public in early April. During the height of the pandemic offices were closed and services could only be accessed online or by phone. Here’s what to expect when Social Security offices reopen. Don’t …

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Reviewing pandemic changes to required minimum distribution rules

At 72 years old (70 ½ if you turned 70 ½ before January 1, 2020), you are required to withdraw a minimum amount annually from your IRA or retirement plan account. This is known as a Required Minimum Distribution. If you continue working for your employer and are not a 5% owner, you can hold …

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IRS releases 2022 limits on retirement plans

Like many other figures, the contribution limits and phase out ranges for retirement plans are adjusted annually for inflation. The IRS has recently released new 2022 limits on retirement plans. Here are some highlights of the new changes: Contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the Thrift Savings Plan …

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The new and improved social security statement

The social security statement has been improved to assist you in making sound decisions about your financial future with clear and plain language for easier reading, use and comprehension. Don’t miss: Are you financially safe in a disaster? The information provided is for adults who do not yet receive benefits. It gives you a glimpse …

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Social Security 2022 benefits increase announced

Another increase! The Social Security Administration announced another cost-of-living adjustment (COLA) to social security benefits. Around 70 million people who receive Social Security benefits will receive a benefit increase of 5.9% to accommodate for the rising cost-of-living due to inflation. The annual COLA is tied to the increase in Consumer Price Index which is determined …

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IRS gives retirees a longer life in 2022

In early 2020, the CARES Act dropped the required minimum distribution (RMD) requirement for year 2020. However, if you received a RMD from your retirement account in prior years, you may realize that life expectancy tables are used to calculate your annual RMD amount. Don’t miss: IRS transcripts masked for identity protection To calculate an …

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Taxable social security wages are rising for 2021

The Social Security Administration announced a 2021 increase to the amount of wages subject to the old age, survivors, and disability insurance (OASDI) tax. The wage limit was $137,700 for 2020 but will rise to $142,800 starting in 2021. This amount changes each year with the national average wage index. The current Social Security (OASDI) …

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Loans from an IRA – Can you take them?

We see a lot of questions regarding loans from an IRA account. The short answer is you are not allowed to take a loan from an IRA or IRA-based plans such as SEPs, SARSEPs and SIMPLE IRA plans. You also are not permitted to roll over an outstanding loan balance from a retirement plan into …

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Transfer tax and foreign items adjust for inflation in 2021

Transfer tax and foreign tax figures are among those that are adjusted annually for cost-of-living increases. Thomson Reuters Checkpoint has calculated these figures for the year 2021 using the chained Consumer Price Index from August 2020. Don’t miss: Reasonable compensation for S-Corporation shareholder employees The annual gift tax exclusion will remain at $15,000 and the …

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