Resources
Resources
Discover the requirements and regulations regarding retirement, social security, medicare, and much more below.
2024 Reference Guide
Retirement Accounts and Contribution Limits
Health Savings Account (HSA)
Education Savings
Income Tax Rate Schedules
Business and Self-Employment
Estate & Gift Tax
Important Dates & Deadlines
New Legislation
Additional Information
- 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.
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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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