If you have not yet received information on your Cash Balance Plan, you will very shortly.

You will have to make a VERY important and irrevocable decision, AND… you have very little time to determine what options are best for you.

The only way to truly determine what your best options are is to carefully analyze it. We can help you decide which option may work best for you.

(Take a minute to watch the video!)

You would never take a prescription without first having tests and a diagnosis. Why would you make such an important decision without first comparing the option?

 

Call us today for a FREE objective evaluation!

814-536-1040

IRA and Retirement Plan Limits for 2017

             2017-sign

IRA contribution limits

The maximum amount you can contribute to a traditional IRA or Roth IRA in 2017 is $5,500 (or 100% of your earned income, if less), unchanged from 2016. The maximum catch-up contribution for those age 50 or older remains at $1,000. (You can contribute to both a traditional and Roth IRA in 2017, but your total contributions can’t exceed these annual limits.)

 

Traditional IRA deduction limits for 2017

The income limits for determining the deductibility of traditional IRA contributions in 2017 have increased. If your filing status is single or head of household, you can fully deduct your IRA contribution up to $5,500 in 2017 if your MAGI is $62,000 or less (up from $61,000 in 2016). If you’re married and filing a joint return, you can fully deduct up to $5,500 in 2017 if your MAGI is $99,000 or less (up from $98,000 in 2016). And if you’re not covered by an employer plan but your spouse is, and you                file a joint return, you can fully deduct up to $5,500 in 2017 if your MAGI is $186,000 or less (up from $184,000 in 2016).

 

If your 2017 federal income tax filing status is: Your IRA deduction is limited if your MAGI is between: Your deduction is eliminated if your MAGI is:
Single or head of household $62,000 and $72,000 $72,000 or more
Married filing jointly or qualifying widow(er)* $99,000 and $119,000 (combined) $119,000 or more (combined)
Married filing separately $0 and $10,000 $10,000 or more

*If you’re not covered by an employer plan but your spouse is, your deduction is limited if your MAGI is $186,000 to $196,000, and eliminated if your MAGI exceeds $196,000.

 

Roth IRA contribution limits for 2017

The income limits for determining how much you can contribute to a Roth IRA have also increased for 2017. If your filing status is single or head of household, you can contribute the full $5,500 to a Roth IRA in 2017 if your MAGI is $118,000 or less (up from $117,000 in 2016). And if you’re married and filing a joint return, you can make a full contribution in 2017 if your MAGI is $186,000 or less (up from $184,000 in 2016). (Again, contributions can’t exceed 100% of your earned income.)

 

If your 2017 federal income tax filing status is: Your Roth IRA contribution is limited if your MAGI is: You cannot contribute to a Roth IRA if your MAGI is:
Single or head of household More than $118,000 but less than $133,000 $133,000 or more
Married filing jointly or qualifying widow(er) More than $186,000 but less than $196,000 (combined) $196,000 or more (combined)
Married filing separately More than $0 but less than $10,000 $10,000 or more

Employer retirement plans

              

Most of the significant employer retirement plan limits for 2017 remain unchanged from 2016. The maximum amount you can contribute (your “elective                            deferrals”) to a 401(k) plan in 2017 is $18,000. This limit also applies to 403(b), 457(b), and SAR-SEP plans, as well as the Federal Thrift Plan. If you’re age 50 or older,  you can also make catch-up contributions of up to $6,000 to these plans in 2017. [Special catch-up limits apply to certain participants in 403(b) and 457(b) plans.]

If you participate in more than one retirement plan, your total elective deferrals can’t exceed the annual limit ($18,000 in 2017 plus any applicable catch-up contribution). Deferrals to 401(k) plans, 403(b) plans, SIMPLE plans, and SAR-SEPs are included in this aggregate limit, but deferrals to Section 457(b) plans are not. For example, if you participate in both a 403(b) plan and a 457(b) plan, you can defer the full dollar limit to each plan—a total of $36,000 in 2017 (plus any catch-up contributions).

The amount you can contribute to a SIMPLE IRA or SIMPLE 401(k) plan in 2017 is $12,500, and the catch-up limit for those age 50 or older remains at $3,000.

 

Plan type: Annual dollar limit: Catch-up limit:
401(k), 403(b), governmental 457(b), SAR-SEP, Federal Thrift Plan $18,000 $6,000
SIMPLE plans $12,500 $3,000

Note: Contributions can’t exceed 100% of your income.

The maximum amount that can be allocated to your account in a defined contribution plan [for example, a 401(k) plan or profit-sharing plan] in 2017 is $54,000, up from $53,000 in 2016, plus age 50 catch-up contributions. (This includes both your contributions and your employer’s contributions. Special rules apply if your employer ponsors more than one retirement plan.)

Finally, the maximum amount of compensation that can be taken into account in determining benefits for most plans in 2017 is $270,000 (up from $265,000 in 2016), and the dollar threshold for determining highly compensated employees (when 2017 is the look-back year) is $120,000, unchanged from 2016.

 

 

 

 

 

Watch the video…

We have been getting great reviews on this new interactive retirement planning tool. We can instantly review various “what if” scenarios to help you determine if you’re on track or not.

 

According to Social Security, women live longer than men, often earn less, and rely on Social Security for most of their retirement income. Approximately 700,00 people apply for spouse’s benefits annually, and over 90 percent of them are women.

Social Security has established a Web site solely to assist women with Social Security Administration benefits. The Web site (www.ssa.gov/women/) gives information to women at all different stages of their lives.

The groups of women that they have information for are:

 

Working Women                                                              Beneficiaries

Brides                                                                                   New Mothers

Divorced Spouses                                                            Caregivers

Widows

 

They also offer links to other Web sites that might be of interest to women as well. It’s a good idea to have a pad of paper and a pen handy when you sit down to page through these sites and put together a list of questions to ask us next time you come in.

This site is just one of many on the web that can help you find the direction you need to go in to achieve the goals you have set for yourself or to help you out of jam when life hands you one of its curveballs.

As always these tips are general in nature, and are intended to give you some ideas and guidelines as to things you should be aware of.

Please don’t take any actions without consulting us, or other appropriate professionals!

If you are holding individual stocks in a retirement account as well as in a regular non-retirement account, it is important to be aware of having the correct stock in the right account.

For example, stocks paying high dividends should go into your retirement account, since those dividends would otherwise be taxed right away at the regular income tax rate. If they were in your regular account, they would lose the benefit of tax-free growth.

Also, aggressive growth stocks should largely be left in the regular account for two reasons. One, they usually don’t pay big dividends and two, stocks sold in the regular account are taxed at the capital-gains rate while those sold in a retirement account are taxed at the higher income tax rate.

Always remember that in no matter what account you hold your equity investments they should be well diversified so as not to expose yourself to too a high a risk.

As always these tips are general in nature, and are intended to give you some ideas and guidelines as to things you should be aware of.

Please don’t take any actions without consulting us, or other appropriate professionals!

People in retirement often wonder what to do when you need money to live on, or to make a major purchase or go on vacation; or before retirement, for buying a house or to pay for college, or whatever.

Some people say that you should look at taking money out of a tax deferred vehicle for things like this while others say you should take tax deferred money out last. We’ve heard advisors say things like “you’ll be in a lower tax bracket in retirement, so you should keep socking away money into tax deferred accounts. Others say the exact opposite, and you shouldn’t put money into tax deferred accounts.

What’s the right answer?

 FIGURE IT OUT BY CRUNCHING THE NUMBERS!

We just had a client come in to see us who moved here from out of state, and had been told to accumulate money in certain accounts because she would be in a “lower bracket” in retirement. Well, because she hadn’t done the math, she found out that by doing what she did, she pushed herself into a HIGHER bracket in retirement, and cost herself a bundle in needless taxes!

Another client was told NOT to accumulate money in tax deferred accounts because he’d end up paying the same or more in taxes when he took the money out. When he came in to see us, we had the unpleasant task of telling him he had overpaid his taxes for years and years based on his advisor’s advice given without the benefit of CRUNCHING THE NUMBERS!

So, the tip is to never go by rules of thumb or people’s guesses when it comes to making big decisions with your money! You have to plan in a careful and thoughtful manner, and be sure to CRUNCH THE NUMBERS!

As always, these tips are general in nature, and are intended to give you some ideas and guidelines as to things you should be aware of. Please don’t take any actions without consulting us, or other appropriate professionals!

Income Solver Brochurehttps://www.facebook.com/AssetPlanning/photos/pb.162916080404800.-2207520000.1472811701./1317850064911390/?type=3&theater

 

 

One of the hardest factors in planning for retirement is trying to accurately judge how much money you will need to live on in the future. Because of inflation, what you can afford today you might not be able to afford when you retire. Unfortunately, there is no way to predict what inflation rates will be in the future.

A good rule of thumb in figuring out your future purchasing power is to use the “Rule of 72”. This is a formula that will help you calculate what you can expect to spend on consumer goods in the future. Here’s how it works.

Divide 72 by the inflation rate to see how many years it will take for the cost of something to double. So, 72 divided by 4 (we’ll use 4% for the inflation rate, even though it’s averaged about 3.5% over the last several decades) equals 18. So, in 18 years the price of goods would be expected to double. For example, say you are buying a pair of shoes today for $50, according to the “Rule of 72” the same pair of shoes will cost you $100 in 18 years.

Take a few moments and calculate what some of your expenses would be sown the road. It can be a real eye-opener as to what your retirement picture will look like.

People in retirement often wonder what to do when you need money to live on, or to make a major purchase or go on vacation; or before retirement, for buying a house or to pay for college, or whatever.

Some people say that you should look at taking money out of a tax deferred vehicle for things like this while others say you should take tax deferred money out last. We’ve heard advisors say things like “you’ll be in a lower tax bracket in retirement, so you should keep socking away money into tax deferred accounts. Others say the exact opposite, and you shouldn’t put money into tax deferred accounts.

The right answer?  FIGURE IT OUT BY CRUNCHING THE NUMBERS!

We just had a client come in to see us who moved here from out of state, and had been told to accumulate money in certain accounts because she would be in a “lower bracket” in retirement. Well, because she hadn’t done the math, she found out that by doing what she did, she pushed herself into a HIGHER bracket in retirement, and cost herself a bundle in needless taxes!

Another client was told NOT to accumulate money in tax deferred accounts because he’d end up paying the same or more in taxes when he took the money out. When he came in to see us, we had the unpleasant task of telling him he had overpaid his taxes for years and years based on his advisor’s advice given without the benefit of CRUNCHING THE NUMBERS!

So, the tip for this month is to never go by rules of thumb or people’s guesses when it comes to making big decisions with your money! You have to plan in a careful and thoughtful manner, and be sure to CRUNCH THE NUMBERS!

As always, these tips are general in nature, and are intended to give you some ideas and guidelines as to things you should be aware of. Please don’t take any actions without consulting us, or other appropriate professionals!

Income Solver Brochure