The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases. The following table presents various limits adjusted for 2023 that you might be subject to.
Hear ye, hear ye: Twenty Twenty-Three hereby demands a blood oath of undying loyalty! After all, that’s how it’s supposed to work, isn’t it? The people must throw their full, unquestioning support behind the new monarch before the body of the prior ruler is even cold. So, too, are we, as investors, expected to banish all of last year’s heartburn and frustration entirely from our memories into the disturbingly full dustbin of market history and pin all of our hopes and dreams to the prospects of the year ahead...as if this were our first time being led down this particular garden path!
As distinct as we each are, we all appear the same to cyber security thieves: as fair game. To them, it’s about our Social Security numbers, birth dates, account login credentials, and other personal information. But by following a few simple, yet key steps, we can fight back against identity & data theft.
We welcome the New Year with a new law aimed at changing the way we think about retirement savings. President Biden signed the SECURE 2.0 bill on December 29, 2022, making the retirement package law. The package includes 90+ new provisions, including those designed to broaden access to workplace retirement plans and raise the age when required minimum distributions begin. Here are the top 10 takeaways we want you to be aware of.
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 revised existing rules around retirement saving, including raising the age of required minimum distributions (RMDs) and eliminating age limits for traditional IRA contributions. There is now a new bill dubbed “SECURE Act 2.0”, that builds on the first to improve retirement savings opportunities for workers. If it has broad bipartisan support, there is a significant likelihood that it will pass this year, either as a standalone or as part of broader legislation.
Now's the time to compare Medicare plans for 2023. Visit Medicare.gov through December 7 to compare plans and make any changes. If you decide to change plans, your new coverage will start January 1. Why compare plans for next year? Plans change, and your health care needs, or situation may have changed, too. Think about what benefits matter to you and find a Medicare plan that fits your needs.
ARE YOU NOT ENTERTAINED?!?
Forgive me; no sooner had the words hit the page than it occurred to me that “entertained” is almost certainly not the word you would have chosen. Stunned perhaps? Or maybe nauseous would have been a better choice. A twenty-five percent bear market decline in stocks disrupted by sporadic and occasionally quite violent counter-trend rallies; a huge spike in the number of one to two percent swings up or down in the market from one day to the next and some of the largest intra-day reversals ever seen.
When deciding whether to rollover your 401(k) to an IRA, you should weigh the pros and cons to determine the option that protects your assets. A Rollover IRA is an account that allows you to move funds from your prior employer-sponsored retirement plan into an IRA. Carefully consider all your available options, which may include but not be limited to keeping your assets in your former employer's plan; rolling over assets to a new employer's plan; or taking a cash distribution (taxes and possible withdrawal penalties may apply).
