As we look ahead to 2025, millions of Americans who rely on Social Security benefits will encounter a noteworthy adjustment in their monthly payments. The Social Security Administration (SSA) has announced a 2.5% cost-of-living adjustment (COLA) that will take effect in January 2025. This adjustment aims to provide financial relief to beneficiaries in the face
Personal
As we approach the year 2025, significant changes are on the horizon regarding inherited Individual Retirement Accounts (IRAs). These modifications come as part of the IRS’s ongoing efforts to streamline retirement benefits and tax regulations, primarily affecting non-spousal beneficiaries who now face mandatory annual withdrawals from inherited IRAs. Understanding these changes is crucial for heirs
Retirement savings have become a major concern for many Americans, with approximately 40% of the workforce falling short in their planning efforts. Despite the general sentiment that retirement should be a time of relaxation and enjoyment, the harsh reality is that inadequate savings often lead to financial stress. As of 2022, Congress took significant steps
Natural disasters wreak havoc not only on landscapes and infrastructure but also on the financial stability of those affected. With recent events, such as Hurricane Helene and Hurricane Milton devastating numerous states, the IRS provides a potential lifeline in the form of tax relief through the casualty loss tax deduction. However, navigating the complexities surrounding
With the Medicare open enrollment period for 2025 commencing on October 15 and running until December 7, it is crucial for beneficiaries to take proactive steps in evaluating their healthcare plans. Despite the importance of this annual opportunity, research from the Kaiser Family Foundation (KFF) indicates that only about 30% of Medicare enrollees review their
As parents strive to foster financial literacy in their children, one effective tool is the Roth Individual Retirement Account (IRA). This account not only sets the stage for a secure financial future but also creates foundational saving habits early on. However, persuading children to prioritize saving for a distant retirement rather than indulging in immediate
As the calendar inches toward 2026, financial advisors are increasingly alert to the impending tax cliff brought about by the expiration of the Tax Cuts and Jobs Act (TCJA) of 2017. Originally implemented to stimulate economic growth through temporary tax reductions, many of the reforms introduced—including lower income tax brackets, expanded standard deductions, and increased
In 2025, American retirees will experience a modest increase in their Social Security benefits, thanks to a cost-of-living adjustment (COLA) of 2.5% as confirmed by the Social Security Administration (SSA). However, an equally significant but perhaps lesser-discussed change will affect higher-income workers—the adjustment to the taxable maximum for Social Security payroll taxes. This adjustment highlights
On Thursday, the Social Security Administration (SSA) announced a cost-of-living adjustment (COLA) of 2.5% for the year 2025. This adjustment is particularly noteworthy as it marks the lowest increase beneficiaries have witnessed since 2021, when COLA was a meager 1.3%. Such adjustments are crucial for social security beneficiaries, including retirees and individuals with disabilities, as
As the year winds down, Social Security beneficiaries are gearing up for the announcement of the annual cost-of-living adjustment (COLA) for 2025. Projections indicate that the increase may disappoint many who rely on these benefits for their daily needs. According to insights from Mary Johnson, a respected independent analyst specializing in Social Security and Medicare,