Big Changes in Social Security and Retirement Plans for 2018

Big Changes in Social Security and Retirement Plans for 2018

 

From 401(k) plans to individual retirement accounts to Social Security, the federal government has been busy in recent weeks adjusting numbers for 2018. Whether you’re an employee or business owner, senior management or nonexempt staff, these changes may affect how you approach retirement in the coming months and years.

Social Security: New ceilings

First, let’s start with what is not changing. The 7.65 percent Social Security deduction remains the same. And as before, it’s doubled to 15.30 percent for the self-employed.

However, the maximum earnings subject to Social Security rises from $127,200 to $128,700, a $1,500 increase. The Society for Human Resource Management estimates that this change means 12 million more workers will be paying more Social Security tax than before. The 1.45 percent Medicare portion, which has no ceiling, remains unchanged.

Those who are working while collecting Social Security catch a small break: The SSA is raising slightly the amount people can earn before losing a portion of Social Security benefits. The new amounts are $10 or $40 a month, depending on the recipient’s status.

Another significant change is to the maximum Social Security benefit for those retiring at full retirement age, which changes from $2,687/month to $2,788/month, a $101 increase. More details are available on the Social Security site.

Retirement plan limits rise

Workers who can afford to do so can put away a little more for retirement: The limit for 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is increased from $18,000 to $18,500.

It’s a little more complicated for those contributing to IRAs:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is $63,000 to $73,000, up from $62,000 to $72,000.
  • For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $101,000 to $121,000, up from $99,000 to $119,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $189,000 and $199,000, up from $186,000 and $196,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

Roth IRA contributors also get a bump up: The income phase-out range is $120,000 to $135,000 for singles and heads of household, up from $118,000 to $133,000. For married couples filing jointly, the income phase-out range is $189,000 to $199,000, up from $186,000 to $196,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

Some IRA numbers are not changing, however:

  • The limit on annual contributions to an IRA remains $5,500. The additional catch-up contribution limit for individuals age 50 and over remains $1,000.
  • The catch-up contribution limit for employees age 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000.

These are just summaries of complex rules. Be sure to give us a call so we can explain how these changes may affect your situation.

2010 Tax Statistics in the USA

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More women between the ages of  55 under 60 yrs of age worked in 2010 compared to the number of men in the same age group.

In both men and women, the top earning age group is between the ages of 46 under 55 yrs of age. Disparity in income between men and women is almost double in favor of men.

738k men are still working past age 76 yrs of age and contributed to about $7M in taxes.

 

 

 

Digital Footprint and my domain names

mydomains

I use godaddy.com to create new domain names to prepare a global site for senior care.  Motherhealth.net and seniorconciergepro.com are now directed to http://www.clubalthea.com

Seniorconciergepro.com and Motherhealth.net

Seniorconciergepro.com shall match seniors and caregivers online and in mobile phones while motherhealth.net is an information hub for health resources for seniors and more.

Creating a digital footprint is important in today’s economy where each of us can define the digital space we want to be called for or be in service for.

We serve others using our site as most people use their cells and internet to find any service at any time.

Investors needed for Senior Care

Motherhealth LLC is looking for investors to reach its goal of serving the needs of seniors. Email motherhealth@gmail.com for details to be one of founding investors.

10 lots in Tagaytay Philippines as rental income Now

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AIRNBN

You can own your retirement home or rental home using airbnb.com at Tagaytay Philippines. Starting cash price for each 200 sqm lot for auction is P800k (pesos). It costs P1.5M to build a house. Located near Tagaytay city hall, the town is called KayBagay Tagaytay.  It is located near Robinson Mall and Tagaytay Mahogany market. There are 10 lots in auction. Email your bid to Marjorie Agustin <marjorie_agustin@yahoo.com> and motherhealth@gmail.com (connie).

Also email Connie, if you want to build now with the current lot for rental income, for visiting tourists, start build budget of $40k.

A gift for our home alone seniors

Gift to our parents

We are a thousand miles away from our aging parents and a wellness gift would be the right fit for them as they cannot shop on their own especially if they are homebound with no caregivers or companion.

Water purifier and nutrition for life

In many senior homes where my caregivers have visited, seniors do not have access to clean water and  their medicine cabinet have expired supplements and lacking in pure nutrition.

Opportunity to create an income in 2016 after 50

Here are the sites for your aging parents and for yourselves and email Connie at motherhealth@gmail.com for more info on how you can share the same benefits to others as 2016 is the year of SHARING.

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