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

What to do when your monthly Social Security check isn’t enough

Fstop123 | E + | Getty Images As the cost of everyday goods swells, retirees living on a fixed income are likely feeling especially squeezed. The recent cost-of-living adjustment to Social Security checks of around 6% this year is not enough of a shield for many with grocery and energy, including gasoline, prices seeing their … Read more

Target date retirement funds work up to a point. When to reconsider

A retirement-savings option that can be smart at the outset of your career probably needs to be reexamined down the road. Target-date funds, as they’re called, offer a way to put your savings on autopilot: Holdings gradually shift away from riskier assets like stocks and toward more conservative investments (bonds and, perhaps, cash) as you … Read more

Living only on Social Security can be difficult. These resources can help

Catherine McQueen | Moment | Getty Images Many Americans enter their retirement years with little or no savings. As a result, most or all of the money they receive comes from their Social Security check. Around 12% of men and 15% of women rely on the benefit for 90% or more of their income, according … Read more

Medicare will soon start covering the cost of at-home Covid tests

Frederic J. Brown | AFP | Getty Images Medicare beneficiaries will be able to get at-home Covid tests at no cost beginning early this spring, the government announced Thursday. The initiative comes after Medicare was not part of a Biden administration mandate that private insurers cover the cost of over-the-counter tests – up to eight … Read more

Why ‘early retirement is one of the worst money mistakes’ you’ll regret, says Harvard economist

As an economist, it’s not in my DNA to draw blows. So I want to be honest: for most Americans, early retirement is not just a decision to take the longest vacation of their lives – it’s one of the biggest money mistakes they will regret. The reason is simple: We as a group are … Read more

Saving less for retirement now may cost you ‘tens of thousands’ later

PeopleImages | E + | Getty Images Identify the retirement account for you One big reason why people often do not save money toward retirement is that their employer does not provide a retirement savings plan, Royal said. But this does not necessarily need to stop you from investing toward your retirement years, he said. … Read more