This survey from the Employee Benefit Research Institute offers some sobering statistics on the financial unpreparedness of the majority of Americans when it comes to their retirement. Sadly rather than a Darwinian solution our "leadership" in Washington will continue to attack and punish responsibility and success by taxing those of us who eschew the 120" TV in favor [...]
One of the most attractive features of the Roth - the ability to avoid Required Minimum Distributions ("RMDs") - is under attack by the Obama White House. Under the clever euphemism of "harmonizing Roth RMD rules with other retirement accounts" President Obama's fiscal 2015 budget calls for a provision that would require Roth IRAs to [...]
One of the biggest challenges in determining when to claim SS benefits is determining which strategy would maximize the monthly inflow. However many who claim SS benefits do so not because of maximization efforts but because the cash is needed immediately. One strategy that seemingly reconciled the competing ends was benefit repayment. Recipients would receive [...]
If The American Dream is home ownership then The American Nightmare is digging out from the mortgage. Fortunately Uncle Sam saves the day once again in his never-ending quest to save us from ourselves. Last week The Consumer Financial Protection Bureau as mandated under the 2010 Dodd-Frank financial reform bill released its first major rule to shape [...]
The Internal Revenue Service is allowing 401(k) and similar employer-sponsored retirement plans to make loans and hardship distributions to victims of Hurricane Sandy and members of their families as part of the Obama administration's efforts to bring all available resources to bear to support state and local partners affected by Hurricane Sandy. The IRS said [...]
A tentative settlement reached in October of Jimmo v. Sebelius (a class action lawsuit brought against the federal government) will make Medicare a bigger player in funding LTC. Under the settlement the U.S. Department of Health and Human Services will relax Medicare's requirements for enrollees seeking coverage for institutional or in-home skilled nursing and therapy services. Currently the standard [...]
2013 2012 401(k) / 403(b) Elective Deferrals $17,500 $17,000 Catch-up Elective Deferrals $5,500 $5,500 Eligible Compensation $255,000 $250,000 Annual Contribution Plan Limit $51,000 $50,000 IRA Contribution $5,500 $5,000 IRA Catch-up Contribution $1,000 $1,000 Social Security Wage Base $113,700 $110,100
Next week we'll find out the Cost of Living Adjustment ("COLA") for 2013 afforded to recipients of Social Security benefits. Given today's low interest rate (and low inflationary assuming you don't eat or drive a car!) environment projections are for a similarly low bump up to monthly checks. The independent American Institute for Economic Research is forecasting [...]
Food for thought courtesy of the WSJ. Happy Labor Day!!
Whether you agree or disagree with George Will he offers some rather tasty food for thought.