This week’s column discusses how the 0.3 percent cost-of-living-adjustment (COLA) to Social Security benefits effective Jan. 1, 2017 affects employees and beneficiaries. Among the effects discussed are higher-salaried employees paying more in FICA taxes, additional earnings needed to earn one Social Security credit, and a higher earnings limit for working Social Security recipients aged 62 to 66.
The annual contribution limit for the Thrift Savings Plan will remain at $18,000 per year in 2017.
Some employees may have inherited traditional or Roth IRAs from deceased relatives. In the first of two columns discussing minimum required distribution (MRD) rules for IRA beneficiaries, this column presents the MRD rules for nonspousal beneficiaries such as children, as well as MRD deadlines, the “five-year” rule, and how the MRD is calculated.
Share prices as of Dec, 1, 2016.
This is the second of two columns discussing the minimum required distribution (MRD) rules for beneficiaries of traditional and Roth IRAs. The first column discussed the rules for non-spousal beneficiaries such as children. This column discusses the MRD rules for multiple beneficiaries and spousal beneficiaries of inherited IRAs.
Share prices as of Nov. 18, 2016.
Question: “If you are a current GS civil servant and accept a presidentially appointed position as an SES or GS15, etc., does your current time in service carry over and count toward retirement and high three?”
For employees who want to lower their 2016 federal and local income taxes, between now and Dec. 31 is the most important time to perform the necessary actions. This week’s column presents six tax-saving suggestions for employees that may result in a lower 2016 tax bill. These suggestions include contributing to the traditional TSP and “tax-loss harvesting.”
Office of Personnel Management retirement claims rose last month by about 1,500 claims—and ended October with a total that stood about 4,000 claims higher than at the same time last year.
Share prices as of Nov. 9, 2016.