Money Talk

MARCH 24, 2022

I recently taught a 90-minute personal finance class for women age 50+. Depending on household income/assets and lifestyle decisions, income taxes and housing costs may increase or decrease. 401(k)s), tax-deferred accounts (e.g., IRAs), taxable accounts, rental real estate, other assets (e.g.,

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401(k) Finance Entertainment Taxes 278

Money Talk

APRIL 20, 2023

Off-Farm Job Employer Benefits - These include a defined benefit pension, an employer retirement savings plan (e.g., Individual Retirement Account (IRA)- There are two types: traditional (funded with before-tax dollars) and Roth (funded with after-tax dollars). health insurance). barn, silo, riding arena), farm equipment (e.g.,

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401(k) Pension Retirement Plan Taxes 246

Money Talk

SEPTEMBER 30, 2022

Many are middle income taxpayers who diligently saved and invested for 4-5 decades in tax-advantaged plans. As I wrote in my book Flipping a Switch , some older adults must “plan for higher taxes in the future, especially when required minimum distributions (RMDs) kick in.” IRMAA surcharges. to $573.30 for Medicare Part B and $12.40

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401(k) Taxes Pension Deductible 245

Money Talk

DECEMBER 22, 2021

Pension COLAs - Pension benefits for some retirees are also indexed for inflation. An example is pensions for federal government workers and military retirees and disabled veterans. Other pensions have frozen or suspended COLAs for their retirees (e.g., the New Jersey state pension plan).

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Money Talk

MARCH 15, 2023

Three Types- Fixed annuities are like CDs, only tax-deferred, and guarantee a certain interest rate for a specified time period. Variable annuities are like mutual funds, only tax-deferred, and their owners select underlying mutual funds, called subaccounts, which determine an annuity’s performance. Medicaid planning, 2.

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401(k) Life Insurance Taxes Insurance 244

Money Talk

MAY 4, 2023

Inflation-induced price hikes on goods and services are like a regressive sales tax and hurt those with low incomes the most. This means that more young adults will enter college, careers, or the military with personal finance knowledge. Below is a brief description of the ten trends that I discussed: Inflation- The U.S.

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Education Finance Pension Taxes 245

Money Talk

JANUARY 18, 2023

This includes Social Security recipients, retirees with COLA-adjusted pensions, and workers with COLAs stipulated in their job or union contracts. Marginal Tax Brackets - Income ranges in the seven marginal tax brackets ranging from 10% to 37% are inflation-based. When inflation rises, workers can save more money.

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401(k) Banking Deductible Deductions 246

Money Talk

NOVEMBER 9, 2023

when there are no more early withdrawal penalties on money removed from tax-deferred accounts) and the start of required minimum distributions (RMDs). Many people are in a lower marginal tax bracket during their gap years (especially after leaving a primary career) than they will be later when RMD withdrawals must begin.

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Pension Taxes Deductible Deductions 191

Money Talk

SEPTEMBER 12, 2024

A married couple has four monthly income streams: $2,500- husband’s pension, $2,000- husband’s Social Security, $800- wife’s pension, and $1,500- wife’s Social Security for a total of $6,800 ($81,600 annually). The wife’s pension and Social Security would go away, however, which could still result in a decrease in household income.

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Pension Pension Benefit Taxes Entertainment 162

Money Talk

OCTOBER 11, 2023

Tax Write-Off for Self-Employment Tax - On line 15 of Schedule 2 (for a 1040 form), self-employed workers can write off the deductible portion of their self-employment tax (calculated on Schedule SE), which will lower adjusted gross income (AGI), a trigger for many other taxes.

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Employment Deductible Deductions Taxes 215

Money Talk

APRIL 11, 2024

The 2023 income tax filing deadline is only days away (April 15, 2024 in most of the U.S.). It will be a busy weekend for many taxpayers and tax preparers who are filing tax returns or tax filing extensions. money that has been taxed) and can be withdrawn at any time for any reason tax-free and penalty-free.

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401(k) Taxes Retirement Plan Pension 185

Money Talk

JULY 25, 2024

It is also easier to keep personal and business finances separate by maintaining dedicated bank accounts and credit cards for business transactions. Stick to a Schedule - Invoicing clients promptly and following up on overdue payments can maintain healthy cash flow and avoid disruptions to personal finances. of net business income.

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Employment Health Insurance Pension Finance 162

Money Talk

AUGUST 10, 2022

Tax on Social Security Benefits - Income from unretiring may push older taxpayers into the income range where tax is due on a portion of Social Security benefits. Tax Withholding Adjustments - Adding income from employment to what could be multiple streams of income in later life (e.g., food, gas, utilities, housing, etc.)

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Disability Insurance Taxes Health Insurance Pension 246

Money Talk

AUGUST 30, 2022

Chapter 3 - Three tricky retirement expenses to project in advance are health care, housing, and taxes and the four Ls of spending in later life are Lifestyle, Longevity, Legacy, and Liquidity. a pension and Social Security). health care, long-term care, inflation, death of a spouse, family responsibilities, and divorce).

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Retirement Plan Taxes Finance Pension 246

Employee Benefits

NOVEMBER 15, 2023

So far, it has been delivered to approximately 80,000 of its UK employees. Kerry Shiels, pension and benefits director at BT, says: “It is very important that employees understand their BT pension and the retirement decisions they will need to make in the lead up to, and at, retirement.

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Pension Education Retirement Plan Finance 116

Employee Benefits

NOVEMBER 15, 2023

Need to know: Employers can tailor content and communication channels to different employee groups to help with their pensions knowledge. Losing the jargon will make the language of pensions easier to understand and more relevant to staff. They could invest in financial coaching for a more personal approach to pensions education.

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Pension Retirement Plan Education Finance 111

Money Talk

JANUARY 19, 2022

For example, workers with a guaranteed pension and/or a high investment risk tolerance might want to have more stock exposure in a TDF and would chose a target date farther off in the future. Make Tax-Advantaged Gifts - Consider “bunching” charitable donations with other tax deductions (e.g.,

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Flexible Spending Account Taxes Pension Deductions 187

Money Talk

JANUARY 26, 2022

One of the most daunting financial aspects of retirement, especially for people who have been diligent savers throughout their working years, is taking required minimum distributions (RMDs) from their tax-deferred retirement savings accounts beginning at age 72. New RMD tables went into effect in 2022, so this is a good time to discuss RMDs.

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401(k) Taxes Retirement Plan Finance 189

Employee Benefits

OCTOBER 23, 2023

lost pension pots in the UK, worth around £26.6 billion WEALTH at work explains how employees can track down lost pensions and provides guidance on whether to consolidate The total value of lost pension pots has grown from £19.4 million lost pension pots sitting unclaimed because they’ve been simply lost or forgotten about.

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Pension Electronics Finance Government 105

Money Talk

JULY 29, 2022

bank and investment accounts, pension, Social Security) should have a two-factor (a.k.a., Keeping current” also means paying attention to scams that feed off current events such as COVID-19, tax season, wars, and natural disasters. Another hygiene practice is using strong passwords with a variety of types of characters.

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Banking Media Pension Finance 275

Employee Benefits

JANUARY 17, 2023

With increasing costs continually putting pressure on household finances, 2023 is set to be a financially challenging year for many. It’s therefore now more important than ever to support employees to take control of their finances to successfully navigate the cost-of-living crisis. Track your finances. Create a budget.

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Finance Pension Banking Retail 98

Employee Benefits

MARCH 6, 2024

WEALTH at work, a leading financial wellbeing and retirement specialist has run financial education workshops for staff in hundreds of organisations and is encouraging people to consider using this saving in National Insurance if they can, to increase their monthly pension contributions. When made into a pension contribution it is worth £206.39

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Pension Insurance Salary Taxes 98

Employee Benefits

JULY 25, 2023

Transitioning to a superior provider is no longer a hassle: If you’re contemplating changing your current workplace pension scheme, the process isn’t as challenging as you might think. Many pension companies (we’re one of them!) What is a workplace pension? are prepared to assist you with the heavy lifting.

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Pension Net Pay Taxes Salary 96

Employee Benefits

JUNE 26, 2023

With interest rates on the rise, we often get asked at our financial education sessions, is it best to pay off your mortgage or pay into your pension? He concludes, “Many employers offer financial education in the workplace, to help their staff to understand their finances so they are better prepared to make decisions like these.”

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Pension Finance Education Taxes 98

Employee Benefits

DECEMBER 19, 2023

It’s now more important than ever to support employees to take control of their finances. Create a budget – The first step to taking control of your finances is to create a budget. Start saving early – Starting to save when you are younger into ISAs and a pension means that the money has lots of time to grow.

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Finance Banking Pension Insurance 104

Employee Benefits

JANUARY 19, 2023

As the cost of living crisis continues, it is now more important than ever that new parents understand how their finances will be affected and what actions they can take. WEALTH at work, a leading financial wellbeing and retirement specialist, highlights some top tips to help new parents stay in control of their finances: 1.

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Finance Parental Leave Pension Salary 105

Money Talk

JUNE 29, 2024

Below are seven key take-aways: Benefit Payments - Retirement benefits are determined by the amount workers earn and pay in FICA (Federal Insurance Contributions Act) tax, which often shows on paychecks as OASDI. Total FICA tax is 15.3% The 7.65% tax is divided: 6.2% quarters of coverage) when they work and pay FICA tax.

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Taxes Pension Finance Insurance 135

Money Talk

AUGUST 31, 2023

pension, Social Security, annuities, dividends/capital gains, full- or part -time employment, self-employment) minus fixed (e.g., America’s 401(k) Experiment - 2023 is the 45 th anniversary of tax-deferred 401(k) retirement savings plans that workers fund with voluntary contributions from their pay. insurance premium) expenses.

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401(k) Pension Food Finance 159

Money Talk

JANUARY 26, 2023

lawn care, tax preparer, hair dresser), natural gas for home heating, electricity, and auto and homeowners insurance. pensions, Social Security, annuities) can “ride it out.” In informal polls of my students, LinkedIn connections, and Facebook friends, higher expenses that stood out to them were food (e.g., $5+ 5+ for 12 eggs!),

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Finance Pension Government Banking 186

Money Talk

AUGUST 16, 2023

Tax on Social Security Benefits - Those who work and claim benefits will trigger taxes with a combined income above $25,000 (individuals) or $32,000 (married couples filing jointly). Continued FICA Tax - Like all workers, employed older adults must pay Social Security/ Medicare tax. Other benefits also continue.

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Taxes Pension Deductible Deductions 130

Employee Benefits

JUNE 20, 2024

Four in ten (41%) say they don’t feel supported in their workplace when it comes to getting help to understand their finances. Worryingly, 54% would seek guidance about their pension from someone unqualified like family and friends, or no one at all, and only 14% would speak to their employer. There are 2.8

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Pension Finance Taxes Salary 103

Employee Benefits

SEPTEMBER 14, 2023

However, many don’t realise the significant difference a small increase to their pension savings can make. For example, someone in their 20s, saving an extra 1% a year with their employer matching this, may be able to increase their pension pot in retirement by 25%. They are all 25 years old and plan to retire at age 68.

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Pension Take Home Pay Salary Taxes 64

Employee Benefits

JULY 12, 2024

Unported Deed, resized Emma Reynolds, the elected Labour MP for Wycombe, has been appointed parliamentary secretary for both the Department of Work and Pensions (DWP) and HM Treasury. The new joint role is part of the new government’s recognition that pensions are the responsibilities of both departments.

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Pension Finance Government Employee Benefits 59

Employee Benefits

NOVEMBER 8, 2022

Prime Minister Rishi Sunak has appointed Laura Trott MBE as minister for pensions, after predecessor Alex Burghart officially held the role for less than one month. Trott was appointed on 27 October, and the Department for Work and Pensions (DWP) made the announcement on 7 November via its official Twitter account.

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Pension Pension Benefit Government Taxes 59

Employee Benefits

APRIL 23, 2024

The FCA announced that more over 55s are accessing their pensions, and over half are cashing out their pension pots completely. Jonathan Watts-Lay, Director, WEALTH at work – a leading financial wellbeing and retirement specialist comments; “It’s concerning that so many pensions are being cashed out in full.

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Pension Taxes Finance Education 59

Employee Benefits

JANUARY 4, 2023

At its simplest, it could simply mean providing online or workplace-based resources which employees can access in order to boost their understanding of their finances. Advice means speaking with an accredited expert who can actively advise and help the individual through managing their finances. What are the benefits? .

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Education Health and Welfare Pension Finance 105

Employee Benefits

NOVEMBER 25, 2022

Huddersfield-based children’s Hospice charity Forget Me Not has launched a salary sacrifice pension arrangement in order to look after the financial wellbeing of its 140 employees. This is then paid into their pension account before national insurance and tax is taken from their salary.

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Pension Salary Taxes Finance 59