Choice between pre-tax and Roth 401(k) plans trickier than you think

Prathanchorruangsak | Istock | Getty Images Whether you’re a current employee or changing jobs, you may need to choose between pre-tax and Roth 401 (k) contributions, and it may be trickier than you expect. Here’s the difference: Pre-tax 401 (k) deposits reduce your adjusted gross income, and the money grows tax-deferred, meaning you’ll pay levies … Read more

Inflation is the ‘top problem’ facing America, survey shows

A worker stocks items inside a grocery store in San Francisco, California, May 2, 2022. David Paul Morris | Bloomberg | Getty Images Meanwhile, President Joe Biden also has faced blowback over continued inflation and plans to address the issue. A Twitter exchange between Biden and Amazon founder Jeff Bezos began on Friday when the … Read more

Your new ‘retirement’ home could be a cruise ship

Jeff Farschman, 72, is a serial cruiser from Delaware who spends months at sea in retirement. Jeff Farschman For nearly two decades, Jeff Farschman, 72, has spent his golden years like many other adventurous retirees – enjoying leisure cruises to exotic ports of call. But unlike many of his fellow cruise passengers, Farschman basically lives … Read more

Worried about a recession? Here’s how to prepare your portfolio

FG Trade | iStock | Getty Images More from FA Playbook: Here’s a look at other stories impacting the financial advisor business. “We all understand that markets go through cycles and recession is part of the cycle that we may be facing,” said certified financial planner Elliot Herman, partner at PRW Wealth Management in Quincy, … Read more

I bonds to deliver a record 9.62% interest for the next six months

Marko Geber | DigitalVision | Getty Images If you’re eyeing ways to fight swelling prices, I bonds, an inflation-protected and nearly risk-free asset, may now be even more appealing. I bonds are paying a 9.62% annual rate through October 2022, the highest yield since being introduced in 1998, the US Department of the Treasury announced … Read more

A possible reduction for Medicare Part B premiums is still in play

Choreograph | iStock | Getty Images For Medicare beneficiaries wondering whether their Part B premiums could be reduced, the waiting continues. More than three months after Health and Human Services Secretary Xavier Becerra ordered a reassessment of this year’s $ 170.10 standard monthly premium – a bigger-than-expected jump from $ 148.50 in 2021 – it … Read more

Social Security taxes up to $147,000 in wages. That could change

Golibtolibov | Istock | Getty Images Taxing the wealthy is a big topic in Washington these days. President Joe Biden recently proposed in his 2023 annual budget a so-called billionaire minimum income tax that would increase levies on the country’s wealthiest households. Under the plan, people with a net worth of $ 100 million or … Read more

Why Biden’s billionaire minimum income tax may be a tough sell

Josh Gottheimer, DN.J., talks to reporters in Washington, Nov. 4, 2021. Elizabeth Frantz | Reuters President Joe Biden has proposed a new tax on the ultra-wealthy as part of his 2023 federal budget, aiming to reduce the deficit by about $ 360 billion. Some experts say it’s unlikely to gain traction in Congress. The “billionaire … Read more

Last chance for some retirees to avoid a 50% RMD penalty is April 1

If you turned age 72 during the second half of 2021, the deadline for your first annual required withdrawal from retirement accounts is April 1. In many cases, it’s the last chance to avoid a hefty penalty. These required minimum distributions, known as RMDs, apply to both traditional and Roth 401 (k) plans, 403 (b) … Read more