Link to Printable PDF: 2025 02 February Newsletter Steady Growth in Real Wages Wages rose strongly with inflation beginning in mid-2021, but the pace of price increases was faster than wage increases, leading to a loss of buying power despite higher income. Real wages — adjusted for inflation — actually declined during this period. For example, at the height of inflation in June 2022, wages increased at an annual rate of 6.7%, but real wages declined by 2.4%. Inflation has dropped … [Read more...]
What’s New for 2025?
To help you stay informed, here are five changes you can look forward to in the new year. Higher catch-up contributions for some. As of January 1, individuals ages 60 through 63 may be able to make increased catch-up contributions (if offered) to their workplace plan. The catch-up amount for people age 50 and older is $7,500 for 2025, but for people ages 60 through 63, the limit will be $11,250.1 Cap on out-of-pocket Medicare drug costs. A bit of welcome news for people with Medicare Part … [Read more...]
Three Market-Moving Economic Indicators to Watch
Among all of the economic indicators released each month, three reports in particular can move the market: the Employment Situation, gross domestic product, and Personal Income and Outlays. The Employment Situation Each month, the Bureau of Labor Statistics (BLS) publishes the Employment Situation Summary report based on information from the prior month. The data for the report is derived primarily from two sources: (1) a survey of approximately 60,000 households, or about 110,000 … [Read more...]
Erb Financial: January Newsletter 2025
Link to Printable PDF: 2025 01 January Newsletter Do You Have a New Year's Resolution? One out of three U.S. adults typically plan to make New Year's resolutions. Younger people are more likely to make resolutions, and they tend to place more emphasis on finances, happiness, and mental health, whereas older people tend to emphasize physical health. Experts suggest that it's easier to keep resolutions that are specific and measurable, and it can be helpful to reward yourself for meeting … [Read more...]
Tax Preparation Checklist 2024
View, Download, or Print - Tax Preparation Checklist 2024 Tax Preparation Checklist - 2024 Tax Year WE MAKE FILING LESS TAXING Copy of both sides of your Driver’s license or State ID. Joint filers need both IDs. (Not necessary if we already have your unexpired IDs on file.) Wage Statements (W-2) and 1099 Forms Pension, IRA, or Annuity Statements (1099-R) Social Security Income Statements (SSA-1099) Interest & Dividend Income Statements (1099-INT & 1099-DIV) … [Read more...]
Would You Be Prepared for an Unplanned Early Retirement?
Most of us would prefer not to think about an unexpected (and unwelcome) early retirement, but it does happen frequently. In fact, nearly half of current retirees retired earlier than planned, and of that group, more than 60% did so due to changes at their company or a hardship, such as disability.1 For that reason, it's a good idea to take certain steps now to help prepare for the unexpected. What you can do now Save as much as possible in tax-advantaged accounts. If you're forced … [Read more...]
Home Energy Rebates Could Save You Money
The Inflation Reduction Act of 2022 included two provisions allowing rebates for home energy efficiency retrofit projects and home electrification and appliance projects. These home energy rebate programs are to be administered by state energy offices, with the U.S. Department of Energy (DOE) providing guidance and oversight. Many states have applied for or have received optional early funding to jumpstart their home energy rebate programs. Rebates are available in some states starting in … [Read more...]
What is a self-employed retirement plan?
A self-employed retirement plan is a tax-deferred retirement savings program for self-employed individuals. In the past, the term "Keogh plan" or "H.R. 10 plan" was used to distinguish a retirement plan established by a self-employed individual from a plan established by a corporation or other entity. However, self-employed retirement plans are now generally referred to by the name that is used for the particular type of plan, such as SEP IRA, SIMPLE IRA, SIMPLE 401(k), or self-employed 401(k) … [Read more...]
What is a SIMPLE?
There are many types of employer-sponsored retirement plans. One that may appeal to small businesses and to self-employed individuals is the savings incentive match plan for employees (SIMPLE) because, as the name implies, it is easy to set up and administer, and employers are allowed to take a tax deduction for the contributions that are made. SIMPLEs can be established by small businesses that have 100 or fewer employees (who were paid at least $5,000 or more in compensation during the … [Read more...]
Retirement Planning – Employee/individual contribution limits
Retirement Planning Employee/individual contribution limits Elective deferral limits 2024 2025 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1 [Includes Roth 401(k) and Roth 403(b) contributions] Lesser of $23,000 or 100% of participant's compensation Lesser of $23,500 or 100% of participant's compensation SIMPLE 401(k) plans and SIMPLE IRA plans1 Lesser of $16,000 or 100% of participant's compensation Lesser of $16,500 or 100% of participant's … [Read more...]
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