by Richard F. O’Boyle, Jr., LUTCF, MBA
As another year winds down – and another begins – it behooves us to take a look at our current retirement plans and make necessary adjustments.
Retirement Plan Contributions for 2013
You may have limited time to maximize their contributions to the retirement plan for fiscal year 2013. Most people can hide money in traditional IRAs and Roth IRA at the latest on April 15, 2014 (for the fiscal year 2013), but some plans have to be completed before the December 31, 2013.
The annual limit for traditional IRAs and Roth IRA is $ 5,500 for 2013 ($ 6.500 if over 50 years) - and must be deposited on April 15, sponsored by the company in 2014 and plans Union / nonprofit profit such as 401 (k), 403 (b) and 457 plans allow 2013 contributions up to $ 17,500 or $ 23,000 (50 or older).
If you have not maximized their contribution 401 (k) for this year, you may want to change your contribution rate before the end of the year. You can increase the percentage of your salary that is provided (and reduce your net pay). Contributions to deferred plans reduce your current taxable income.
Retirement Plan Contributions for 2014
The IRS has made contributions to retirement plans for 2014 at the same levels as 2013. But the thresholds for qualifying for Roth IRAs is increasing slightly. If your adjusted gross income is less than $ 129,000 (for singles) or $ 191,000 (for married people filing jointly), then you are eligible to contribute to a Roth IRA. Eligibility begins to phase out if you earn more than $ 114,000 (single) and $ 181,000 (couples).
Tax strategies year end
If you want to reduce your taxable income for 2013, you can consider paying more expenses you can deduct. For example, some people will pay in advance their real estate taxes, insurance premiums owner or make mortgage payments in advance as would normally be expected in early 2014.
Deductions for medical expenses
By 2013 the amount of medical expenses required to reach the deductible threshold has increased for people under 65 must have medical expenses greater than or equal to 10% of your adjusted gross income in order to be able to deduct them. People over 65 have only spending 7.5% until 2017.
Mandate Individual Health Insurance
Starting in 2014, individuals are required to have health insurance either through their employer or individually. In order to establish an individual plan instead of January 1, 2014 effective date, people shopping in the market for government insurance (http://www.healthcare.gov) and for New Yorkers (http: //www.nystateofhealth.com) must register for (and pay for) a plan before 23 December 2013. the actual mandates kicks the March 31, 2014.
Health Savings Account Contributions
If you have a high deductible plan health insurance that includes a savings account health preferred tax, you can still maximize their contributions for 2013. The contribution limit for 2013 is $ 3,250 for individuals and $ 6.450 for families. The maximum takes into account both the employee and employer contributions to HAS. For over 55 years the maximum increased by $ 1,000.
Social Security and Medicare in 2014
The Social Security Administration benefits will increase 1.5% in 2014. Premiums for Medicare Part B will remain at $ 104.90 per month, but high-income people will see the surcharge for Part B and Part D increase slightly.
The annual limit for traditional IRAs and Roth IRA is $ 5,500 for 2013 ($ 6.500 if over 50 years) - and must be deposited on April 15, sponsored by the company in 2014 and plans Union / nonprofit profit such as 401 (k), 403 (b) and 457 plans allow 2013 contributions up to $ 17,500 or $ 23,000 (50 or older).
If you have not maximized their contribution 401 (k) for this year, you may want to change your contribution rate before the end of the year. You can increase the percentage of your salary that is provided (and reduce your net pay). Contributions to deferred plans reduce your current taxable income.
Retirement Plan Contributions for 2014
The IRS has made contributions to retirement plans for 2014 at the same levels as 2013. But the thresholds for qualifying for Roth IRAs is increasing slightly. If your adjusted gross income is less than $ 129,000 (for singles) or $ 191,000 (for married people filing jointly), then you are eligible to contribute to a Roth IRA. Eligibility begins to phase out if you earn more than $ 114,000 (single) and $ 181,000 (couples).
Tax strategies year end
If you want to reduce your taxable income for 2013, you can consider paying more expenses you can deduct. For example, some people will pay in advance their real estate taxes, insurance premiums owner or make mortgage payments in advance as would normally be expected in early 2014.
Deductions for medical expenses
By 2013 the amount of medical expenses required to reach the deductible threshold has increased for people under 65 must have medical expenses greater than or equal to 10% of your adjusted gross income in order to be able to deduct them. People over 65 have only spending 7.5% until 2017.
Mandate Individual Health Insurance
Starting in 2014, individuals are required to have health insurance either through their employer or individually. In order to establish an individual plan instead of January 1, 2014 effective date, people shopping in the market for government insurance (http://www.healthcare.gov) and for New Yorkers (http: //www.nystateofhealth.com) must register for (and pay for) a plan before 23 December 2013. the actual mandates kicks the March 31, 2014.
Health Savings Account Contributions
If you have a high deductible plan health insurance that includes a savings account health preferred tax, you can still maximize their contributions for 2013. The contribution limit for 2013 is $ 3,250 for individuals and $ 6.450 for families. The maximum takes into account both the employee and employer contributions to HAS. For over 55 years the maximum increased by $ 1,000.
Social Security and Medicare in 2014
The Social Security Administration benefits will increase 1.5% in 2014. Premiums for Medicare Part B will remain at $ 104.90 per month, but high-income people will see the surcharge for Part B and Part D increase slightly.
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