For the most part, there is nothing good to say about inflation, and it is a frequently discussed topic these days. Many Social Security recipients are definitely impacted by rising prices, but there is some good news looming over the horizon. Social Security Cost-of-Living Adjustments (COLAs) Each year, the Social Security Administration can increase benefits to account for the cost of living. Calculations are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers … [Read more...] about Elder Law Insight: High Social Security COLA Anticipated for 2023
Retirement Planning
Securing a Strong Retirement Act Has Been Approved By House
We have been providing updates about the Securing a Strong Retirement Act that would alter the individual retirement account parameters. It was introduced last year, and the prospects for enactment have always been good, because legislators from both parties are in favor of it. This measure is often referred to as “SECURE Act 2.0” because it expands on the SECURE Act that was enacted in December of 2019. It has now been passed in the House of Representatives by a 414-5 vote, so it is one … [Read more...] about Securing a Strong Retirement Act Has Been Approved By House
IRS Has Lowered Retirement Account RMD Requirement
Your 401(k) or individual retirement account is supposed to provide income that you can draw from during your retirement years. However, if you do well financially and make some strong moves along the way, you may never need the money. At that point, your account will fit into your estate plan. The IRS has recently implemented a change that will allow you to keep more money in the account if you have a traditional IRA or a 401(k), and we will explain the details in this post. Required … [Read more...] about IRS Has Lowered Retirement Account RMD Requirement
Consider the Tax Climate When You Pick a Retirement Spot
If you live in Connecticut, you may want to retire to a location that has a milder climate, and this is understandable. In addition to the weather, you should also consider the tax climate when you are choosing a retirement destination. Income Taxes on Retirement Income There are 41 states in the union with state-level estate taxes, so you do not have to pay taxes on any type of income if you live in any one of nine states. They are Texas, Florida, Nevada, South Dakota, New Hampshire, … [Read more...] about Consider the Tax Climate When You Pick a Retirement Spot
Report: Expect Nice Social Security COLA in 2022
Social Security recipients can see cost-of-living adjustments (COLAs) that will increase their benefits when inflation justifies it. The inflation rate has been low over recent years, so the adjustments have been minimal. Last year, the COLA was just 1.3 percent, and it was 1.6 percent the previous year. This sounds disappointing, but there were no adjustments at all in 2010, 2011, and 2016. The COLA in 2017 was a microscopic .3 percent. This time around, the adjustment is going to be … [Read more...] about Report: Expect Nice Social Security COLA in 2022
Biden Administration Eyes Social Security Reform
President Biden has a number of legislative priorities that he will push for during the next two years, and Social Security reform is one of them. People on one side of the spectrum will look at the proposed changes favorably, but those at the top may not share their opinion. Minimum Benefit Increase Your Social Security benefit is based on the 35 years during which you earned the most amount of money. There is a maximum amount that can be taxed for Social Security purposes, and in 2021, the … [Read more...] about Biden Administration Eyes Social Security Reform
SECURE Act 2.0 Could Trigger Big Retirement Plan Changes
Individual retirement accounts are used by most Americans to prepare for their senior years, and they are also passed along to beneficiaries. As elder law and estate planning attorneys, we keep a finger on the pulse of legislative statutes that impact the IRA guidelines. The SECURE Act was enacted on December 20, 2019, and it went into effect in 2020. Now, a bipartisan piece of legislation that is being dubbed SECURE Act 2.0 has been introduced into the House. We will look at the proposed … [Read more...] about SECURE Act 2.0 Could Trigger Big Retirement Plan Changes
Medicare Costs Updated for 2021
As elder law attorneys, we keep a finger on the pulse of matters that are important to senior citizens. Clearly, Medicare is an important piece to the puzzle, and when you are planning for retirement, you should be fully cognizant of the out-of-pocket costs. Each year, there are updates to the relevant figures. The changes for 2021 are now available, and will share them in this post. Retirement Credits to Qualify for Medicare Some people assume that you automatically qualify for Medicare … [Read more...] about Medicare Costs Updated for 2021
Can I Work and Collect Social Security?
You should fully understand the Social Security parameters when you are looking ahead toward your retirement years, because you will have decisions to make. We were going to provide some important details in this post, but first, we will take a quick look at the way that you qualify. When you work and pay those annoying FICA or self-employment taxes, you get something back for your contributions eventually. You earn retirement credits when you pay these taxes, and in 2020, you get one credit … [Read more...] about Can I Work and Collect Social Security?
SSA: Beneficiaries Will Get COLA in 2021
The Social Security Administration has released some updated figures for 2021, and we will take a look at them in this post. Medicare should be releasing their changes in the near future, and we will pass along that information as soon as it becomes available. Cost Of Living Adjustment (COLA) Prices tend to go up year after year, and the Social Security Administration (SSA) acknowledges this fact of life. The Department of Labor maintains the Consumer Price Index to keep a finger on the pulse … [Read more...] about SSA: Beneficiaries Will Get COLA in 2021
