IRS
RMDs by year-end deadline
The IRS recently published a reminder for those aged 73 and older of the deadline to take required minimum distributions (RMDs) from individual retirement arrangements (IRAs) and other retirement plans. The SECURE 2.0 Act raised the age at which account…
Considering Income Tax Rates in Retirement
Many of us have looked to retirement as a time when we become free–well, more free–of the federal income tax burden we carried during our working years. For many retirees, that is the case, But for higher earners and those…
Tomorrow is World Elder Abuse Awareness Day (WEAAD)
A recent post on IRS Newswire focused attention on the rising threat of impersonation scams targeted at older adults by scammers pretending to be government officials and attempting to obtain sensitive, personal information including social numbers. The details of this…
2025 contribution limits for HSAs
The IRS has announced the 2025 contribution limits for Health Savings Accounts (HSA), Health Reimbursement Arrangements (HRA), and High Deductible Health Plans (HDHP). The inflation-adjusted annual limit amounts for 2025 are smaller if you compare them to the largest-ever increase…
Who pays the most and least in taxes
Does the average American pay too much in taxes? A recent poll from AP-NORC found “only about 18% of adults correctly identified the group facing the highest federal tax burden, which is high-income Americans.” Alex Muresianu, a senior policy analyst…
New Limits for ABLE Accounts Now in Effect
Amid the slew of changes for 2024, the IRS announced new limits on the amount of savings available to holders of Achieving a Better Life Experience (ABLE) accounts. ABLA accounts allow states to create tax-advantaged savings programs for eligible people…
The IRS has postponed the catch-up contribution requirements until 2026.
Recently, the IRS announced the new catch-up contribution requirement under the SECURE 2.0 Act. The new rule affects older, higher-paid 401(k) participants to make catch-up contributions into an after-tax Roth account instead of the pre-tax traditional accounts. Although Congress meant…
Retirement Tax Planning: Avoiding Surprises
If you’re a new or soon-to-be retiree, you need to be aware of some of the nuances concerning your cash flow in this life phase. Specifically, you need to adjust your financial plans to account for the chunk that will…
2023 will be a savers year
Although the stocks and bonds market will continue to be volatile next year by all indications; however, retirement savers will have a banner year. Why? The IRS is increasing savings limits on many retirement savings vehicles. John F Wasik discusses…
Retirement savers got some surprising news
The Internal Revenue Service announced that the amount individuals can contribute to their 401(k) plans in 2023 has increased to $22,500, up from $20,500 for 2022. The IRS also issued guidance regarding the cost‑of‑living adjustments affecting dollar limitations for pension…