When you are planning for retirement, you may consider moving to another state for one reason or another. If you are making this decision, you should certainly take taxation into consideration, and there are some potentially significant taxes that you may overlook. State Income Taxes on Retirement Income In most states, you have to pay state-level income taxes on pension payments and 401(k) and individual retirement account income. However, there are nine states that do not have state-level … [Read more...] about Will You Pay Taxes on Retirement Income?
Social Security Benefit Increase Is Possible
Elder law attorneys pay close attention to legislative measures that can impact benefits for senior citizens. With a new administration, some potential changes to Social Security are being floated. President Biden has stated that he would like to increase Social Security benefits and replenish the Social Security trust fund. As it stands right now, the program is fully funded so benefits can be paid through 2037, but adjustments must be made to fully fund the program beyond that date. Biden … [Read more...] about Social Security Benefit Increase Is Possible
IRA News: SECURE Act 2.0 May Become a Reality
We focus on matters that are of interest to senior citizens, and the laws that regulate individual retirement accounts are quite relevant. In December of 2019, the SECURE Act was enacted, and it established some new parameters for 2020 and subsequent years. In October of this year, a bipartisan measure that has been dubbed SECURE Act 2.0 was introduced, and it would mandate additional changes to the IRA guidelines. We will look at these provisions in this post, but first, we will review the … [Read more...] about IRA News: SECURE Act 2.0 May Become a Reality
What Is the 2021 Social Security COLA?
Government benefits for seniors are adjusted annually, and a new year is just around the corner. Some updated figures have been released, and we will share them in this post so you can stay a step ahead of the pack. Cost of Living Adjustment (COLA) The Social Security Administration uses the Department of Labor’s Consumer Price Index to consider cost-of-living increases. We are using the term “consider” because it is not a given; there were no increases for three of the last 11 years. In … [Read more...] about What Is the 2021 Social Security COLA?
Understand Government Retirement Benefit Programs
They say that days seem to drag on forever, but years pass far too quickly. Without question, it can be kind of shocking to sit back and see how rapidly time flies. This applies especially to the approach of your senior years. The sooner you start to prepare yourself, the better. One step will be to educate yourself about the government retirement benefits that you can expect to receive. With this in mind, we will look at some key facts about Social Security and Medicare. To warn you in … [Read more...] about Understand Government Retirement Benefit Programs
Answering a Common Social Security Question
If you find that your Social Security check is not going to be enough to fund your lifestyle as a senior citizen, what do you do? The logical course of action would be to continue working until you reach the point where it is simply not necessary anymore. One very common question that arises with regard to working and Social Security involves a potential reduction in Social Security benefits. The age of full Social Security eligibility varies depending on the year of your birth. For those … [Read more...] about Answering a Common Social Security Question
Mortgages Payments and Retirement
One of the reasons that so many people want to have their mortgage paid by the time that they retire is that trying to make mortgage payments when you are living on a retirement income can be very difficult. Though paying off your mortgage before you retire may be exactly the right thing for you to do, it may be better to invest that money in other ways. Before you decide if you should pay off your mortgage, there are a few things that you may want to consider, such as the return on your … [Read more...] about Mortgages Payments and Retirement
Bad News for Social Security Recipients
Misconceptions abound when it comes to retirement programs for senior citizens. Before you look into the subject, you may believe that a comfortable retirement is waiting for you. Medicare will cover all health needs and income from Social Security will be adequate to live on. In reality, Social Security payouts are not very robust. The exact amount that you receive will be calculated based on the 35 years during which you earned the most amount of money. Only a certain amount can be taxed for … [Read more...] about Bad News for Social Security Recipients
How Soon Can I Receive a Social Security Benefit?
To be comprehensively prepared for the future, you should carefully consider the different stages of life that you will pass through as you get older. Your retirement plan will certainly address the active years that you have always looked forward to, and then there are the twilight years that will follow. You should plan ahead proactively as you take steps to prepare for the eventualities of aging. Social Security The Social Security program is very important for a significant percentage of … [Read more...] about How Soon Can I Receive a Social Security Benefit?
A Look at the “Stretch IRA” Transfer Technique
If you plan ahead intelligently with the assistance of a good estate planning lawyer you will be aware of your options for transferring your assets to your loved ones. One of the options available in appropriate circumstances is the "stretch IRA" transfer technique. Individual retirement accounts come with tax deferral advantages built-in. This is intended to assist individuals who are planning ahead for their senior years. However, it is possible to take steps to allow a beneficiary to take … [Read more...] about A Look at the “Stretch IRA” Transfer Technique
