With inflation picking up, Social Security benefits will jump a whopping 5.9% in 2022. Benefit recipients will see the raise beginning with the checks to be issued the first week of January 2022. Unfortunately, the Medicare Part B premium that is automatically deducted from Social Security check will rise from $148.50 to $170.10 for the […]
PAYING FOR NURSING CARE – PROTECTING INCOME
In a related article, I review Medicaid “resource assessment” rules that allow you to protect certain assets when your spouse enters a nursing home. These rules are designed to make sure that the spouse in the community is not rendered penniless by having to deplete all of the couple’s resources to pay for a nursing […]
New Tax Break for Estate and Trust Beneficiaries
To understand this change, I’ll give a little background. When a person dies, their income tax year ends on the day of their death, and a new taxpayer called an “estate” comes into being. For federal income tax purposes, the estate files a Form 1041. On Form 1041, the estate has to report any income […]
No RMDs in 2020
The 880-page Coronavirus Aid, Relief, and Economic Security (CARES) Act signed by the President on March 27, 2020, includes a number of measures designed to stimulate the economy. One provision allows retirees to forgo taking Required Minimum Distributions (RMDs) from IRAs or 401(k)-type plans for calendar year 2020. This isn’t the first time that they […]
THE SECURE ACT
It has been awhile since made a post, but this development deserves your immediate attention. As you may be aware, the Setting Every Community Up for Retirement Enhancement Act of 2019 commonly being called the SECURE Act was signed into law December 20, 2019 and the changes discussed in this email apply to those who […]
