Resources

Resources

Resources

Discover the requirements and regulations regarding retirement, social security, medicare, and much more below.

2024 Reference Guide

Retirement Accounts and Contribution Limits
  • SEP IRA: Contribution limit is the lesser of $69,000 or 25% of compensation.
  • SIMPLE IRA: Contribution limit is $16,000, with a catch-up contribution of $3,500 for those aged 50 or older.
  • IRA/Roth IRA: Contribution limit is $7,000, with a $1,000 catch-up for those aged 50 or older.
  • 401(k), 403(b), 457, and SARSEPs: Elective deferral limit is $23,000, with a $7,500 catch-up for those aged 50 or older.

Health Savings Account (HSA)
  • Minimum deductible amounts and maximum out-of-pocket amounts are specified for single and family coverages, along with HSA contribution limits.

Education Savings
  • Coverdell Education Savings Accounts: Contribution limit is $2,000.
  • 529 Plans: Can be used for college, apprenticeship, trade school expenses, and up to $10,000/year for private K-12 tuition.

Income Tax Rate Schedules
  • Detailed tax brackets for single taxpayers, married filing jointly, and trusts & estates, including the tax rates and income ranges.

Business and Self-Employment
  • Information on self-employment tax, Medicare tax, and the taxation of net business income for pass-through entities and corporations.

Estate & Gift Tax
  • Individual estate and gift tax exclusions are set at $13,610,000, with an annual gift tax exclusion per recipient of $18,000.

Important Dates & Deadlines
  • Deadlines for IRA contributions, Roth conversions, and estimated tax payments are provided.

New Legislation
  • Highlights of the SECURE Act 2.0, including changes to RMD starting ages, catch-up contribution limits, and provisions for part-time employees.

Additional Information
  • The document also touches on the Corporate Transparency Act, affecting small businesses and reporting requirements.

2024 Social Security Reference

Social Security Basics

  • Social Security Employment Tax: Workers and their employers each pay 6.2% towards Social Security (7.65% including Medicare).
  • Minimum Eligibility Requirements: To qualify for benefits on your own record, you need a minimum of 40 credits, equivalent to ten years of work that’s eligible for Social Security. You earn one credit for each $1,730 in earnings (2024), up to four credits per year.

 

Full Retirement Age (FRA)

  • Minimum deductible amounts and maximum out-of-pocket amounts are specified for single and family coverages, along with HSA contribution limits.

Taxation of Benefits

  • Coverdell Education Savings Accounts: Contribution limit is $2,000.
  • 529 Plans: Can be used for college, apprenticeship, trade school expenses, and up to $10,000/year for private K-12 tuition.


Cost of Living Adjustment (COLA)

  • Detailed tax brackets for single taxpayers, married filing jointly, and trusts & estates, including the tax rates and income ranges.


Recent Legislation

  • Information on self-employment tax, Medicare tax, and the taxation of net business income for pass-through entities and corporations.


Future of Social Security

  • Individual estate and gift tax exclusions are set at $13,610,000, with an annual gift tax exclusion per recipient of $18,000.


Applying for Social Security

  • Deadlines for IRA contributions, Roth conversions, and estimated tax payments are provided.


Recent Legislation

  • Highlights of the SECURE Act 2.0, including changes to RMD starting ages, catch-up contribution limits, and provisions for part-time employees.


Additional Information

  • The document also touches on the Corporate Transparency Act, affecting small businesses and reporting requirements.

2024 Medicare Reference

Medicare Part A (Hospital Insurance)

  • Covers inpatient hospital care, skilled nursing facility care, hospice, lab tests, surgery, and home health care.
  • Monthly Premium: $0 for most individuals over 65 (premium-free Part A) due to paying Medicare taxes while working.
  • Deductibles and co-payments apply for hospital stays and skilled nursing facility care.


Medicare Part B (Medical Insurance)

  • Covers doctor services, outpatient care, durable medical equipment, and preventive services.
  • Premiums are income-based, ranging from $174.70 to $594.00 per month, with a $240 annual deductible.
  • Coinsurance of 20% after the deductible is met.


Medicare Part D (Prescription Drug Plan)

  • Offers coverage for prescription drugs through private insurers, with costs and coverage varying by plan.
  • Includes an initial deductible, co-payments, and a coverage gap (“donut hole”).
  • Premiums are income-based, with additional costs added to the plan premium based on income levels.


Medicare Advantage (Part C)

  • Offers Part A and B coverage through private companies, often including additional benefits like prescription drugs, vision, and dental.
  • Monthly premiums, deductibles, and service charges vary by plan.


Medigap Policies

  • Private insurance that covers gaps in Parts A and
    B coverage, such as deductibles and co-payments.
    Does not work with Medicare Advantage Plans.
    Plans C and F, which cover the Part B deductible, are no longer available to new beneficiaries as of 2020.


Enrollment Periods

  • Initial Enrollment Period: 7-month period around your 65th birthday.
  • General Enrollment: January 1st to March 31st for Part A and B, with coverage starting July 1st.
  • Medicare Advantage and Part D Open Enrollment: October 15th to December 7th.


Planning Considerations

  • Health costs are a significant expense for individuals over 65, with traditional Medicare covering about 60% of medical costs in retirement.
  • Estimated retirement health care costs for a couple starting at age 65 can range significantly based on coverage and health status.
    The guide emphasizes the importance of understanding Medicare options, enrollment periods, and potential out-of-pocket costs to effectively plan for healthcare expenses in retirement.

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