OAM News

The Difference Between Debit Cards and Credit Cards

   My advice has always been to opt for the credit card over the debit card, with the caveat that you pay the bill in-full monthly.  The following article points out the major differences and is well worth the read.

http://www.creditcards.com/credit-card-news/debit-or-credit-differences-1271.php

 

IRS Announces 2020 HSA Inflation Adjustments

The IRS has announced the inflation-adjusted HSA figures for 2020.  These are as follows:

  • Maximum Contribution:  Single $3,550.    Family $7,100. (Single increased $50.; Family increased $100.)
  • Catch Up Contribution for those over 50:  $1,000.  (unchanged)
  • Minimum policy deductibles:  Single $1,400.     Family $2,800. (Single increased $50.; Family increased $100.)
  • Maximum out of pocket expenses:  Single $6,9000.     Family $ 13,800.   (Single increased $150.; Family increased $300.)

IRS Announces Inflation Adjustments & Retirement Plan Limits for 2020

The IRS has has announced that there will be a 1.6% COLA for SSA and SSI in 2020.  For those collecting prior to age 66, the earnings allowed before benefits are reduced will increase to $18,240. in 2020.

Social Security wage base increased to $137,700.  This limit applies to Social Security only.  Medicare continues to be deducted from all income, with earnings over $200,000. (single), $250,000. (joint) subjected to an additional Medicare tax, as stipulated in the Affordable Care Act.

Retirement Plan Limits:

  • IRA Contributions for 2020 remain a maximum of $6,000, with the catch-up for those over age 50 remaining at an additional $1,000.
  • The income phase-out range for Roth IRAs increases to $124,000 - $139,000 (single) and $196,000 - $206,000. (joint).  (NOTE: there are no income limitations for Roth 401(k) contributions.)
  • SIMPLE IRA Salary Deferral limit increases to $13,500.,  plus $3,000. catch-up for those over age 50.

  • Elective Salary Deferral limit for employees participating in 401(k), 403(b), and most 457 plans increases to $19,500. 

  • The catch-up contribution for those age 50 and over will also increase to $6,500.

  • Maximum qualified retirement plan contributions (employer + employee) rises to $57,000. (over 50, $63,500.).  Salary limits used in calculating contributions has increased to $285,000.

  • The Flexible Spending Account (FSA) limit will increase to $2,750.

Medicare 2020

Medicare premiums are expected to rise again this year and 2020 begins inflation adjustment for Medicare "high income" premium adjustments.

The Part B standard premium will rise to $144.60/month, a 6.7% increase. The part B deductible is also increasing to $198., 7% increase over 2019.

Surcharges (IRMAA) are also rising, and the Total Monthly Part B premiums are as follows:

SINGLE INCOME:

  • $87,000. or less               $144.60
  • $87,001. to $109,000.        202.40
  • $109,001. to $136,000.      289.20
  • $136,001. to $163,000.      376.00
  • $163,001. to $500,000.      462.70
  • Above $500,000.                491.60

MARRIED FILING JOINTLY income:

  • $174,000. or less             $144.60
  • $174,001. to $218,000.      202.40
  • $218,001. to $272,000.      289.20
  • $272,001 to $326,000.       376.00
  • $326,001. to $750,000.      462.70
  • Above $750,000.                491.60

 

 

Considerations in Selecting a Healthcare Plan

Open Enrollment is coming for most employees and many who purchase individual insurance plans will receive renewal notices shortly.  It is important to look at more than just the premium when evaluating a plan.

Some of the items that should be included in your evaluation include the following:

  • Premium
  • Copay
  • Deductible
  • Maximum Out of Pocket
  • Prescription coverage
  • Doctor Participation
  • Hospital Participation

This evaluation can become complicated, complex, and confusing. If you become overwhelmed or would like a "second opinion", please feel free to contact Diane McIntee for assistance.

Choosing a suitable plan for you and your family at a reasonable cost is important. I am here to assist you make in making this important decision.

 

Healthcare & Financial Powers of Attorney for Children

Please double click on the above link to view important information regarding children who have reached age of legal majority.