February Personal Finance Newsletter
February 14, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The February personal finance newsletter is now available. In addition to the investing market update, the topics are:
- Extension of tax-free charitable contribution option from IRAs for those over 70 1/2
- New cost basis reporting rules (important for those with taxable investment accounts)
- Summary of the health care law provisions going into effect this year
Click here to read the newsletter.
January 2011 Personal Finance Newsletter
January 14, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The January newsletter is now available with a 2010 investment market recap, a humorous look at investing resolutions for the new year, and details on the estate tax changes enacted in December. It also includes an announcement of topics for the Keller Public Library personal finance workshop series for January – June. Click here to read the newsletter.
December Personal Finance Newsletter
December 16, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The December 2010 personal finance newsletter is now available. It includes an important update on social security rules, 2011 IRS mileage rates, considerations in rolling your traditional 401(k) to a Roth IRA, and changes to the adoption assistance program. As always, there’s also an investment market update. Please click here to view the newsletter.
October Personal Finance Newsletter
October 15, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The October 2010 personal finance newsletter is now available. It includes information on social security, medicare open enrollment season, year-end investment planning, and the new small business jobs act provisions. In addition, an investment market update and information on free financial workshops in Keller (TX) are always covered. To view the newsletter, click here.
September Personal Finance Newsletter
September 17, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The September 2010 personal finance newsletter is now available. It includes information on opportunities unique to 2010 for year-end tax planning, tips on teaching your college-age child about money, how a stronger dollar affects your portfolio, information on FDIC insurance now that higher limits are permanent, and a market update. Click here to read the newsletter.
August 2010 Personal Finance Newsletter
August 13, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The August 2010 personal finance newsletter is now available. It includes information on how college scholarships are taxed, how the new healthcare law affects Medicare drug plans, and, as always, an investment market update. Enjoy! Click here to view the newsletter.
April 2010 Monthly Newsletter
April 15, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The April 2010 monthly newsletter is now available. It includes information on how the new healthcare law may affect you as an individual and new student loan and financial aid provisions. Also covered are an investment market update and a discussion on the merits of dollar cost averaging to make investments vs. lump-sum investing. Please click here to view the full newsletter.
New Health Care Law Highlights
April 2, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
If you’re like me, you found it challenging to keep up with the provisions of the health care bills as they worked through the legislative process. But now that the bill is law, it’s helpful to understand how it may affect your individual situation and any changes that need to be made to your financial plan as a result. An overview of some of the most significant provisions:
For individuals
- U.S. citizens and legal residents will be required to have health insurance by 2014, with some exceptions. Those without insurance will face a tax penalty of as much as 2.5% of taxable income.
- Existing employer-sponsored health insurance plans will be allowed to remain essentially the same except the plans will be required to extend dependent coverage to qualifying children through age 26, lifetime limits (and eventually, annual dollar limits) on coverage must be eliminated, waiting periods for coverage cannot extend beyond 90 days, and insurers will not be able to deny coverage or charge higher premiums to people based on their health status and gender.
- Medicaid eligibility will be expanded to include individuals under age 65 whose income is less than 133% of the Federal Poverty Level.
- For families with incomes up to 400% of the Federal Poverty Level, tax credits and subsidies will be available to purchase health insurance through state-run exchanges, and to offset out-of-pocket costs.
- Contributions to a health flexible spending account will be limited to $2,500 per year. Reimbursements from health FSAs and HRAs for over-the-counter drugs will be restricted, and tax-free reimbursements from HSAs and Archer MSAs for over-the-counter drugs will not be allowed, while the tax on HSAs and Archer MSAs increases for distributions not used for qualified medical expenses.
- A rebate of $250 will be available to Medicare Part D (drug coverage) beneficiaries who reach the coverage gap (donut hole) and the coinsurance rate for costs within this gap are gradually reduced to 25%.
- Adults with pre-existing conditions will be able to purchase coverage from temporary high-risk pools until 2014, when coverage cannot otherwise be denied for pre-existing conditions.
- A national program will be established to provide limited reimbursement for long-term care expenses for individuals who participate by contributing to the program’s cost through voluntary payroll deductions.
For employers
- Employers with 50 or more employees that do not offer health insurance coverage will generally have to pay a premium tax of up to $2,000 per full-time employee.
- Employers with more than 200 employees must automatically enroll employees in health insurance plans from which employees may opt out.
- Employers providing health insurance must offer a voucher to qualifying employees to purchase insurance through an exchange.
- Qualifying small employers may receive a tax credit for providing health insurance to employees.
Tax changes
- The threshold for itemized deductions for qualified medical expenses will be increased from 7.5% of adjusted gross income (AGI) to 10% of AGI, though a temporary exception will be maintained for those 65 and older.
- The tax for Medicare Part A (hospitalization coverage) is increased 0.9% for individuals with earnings exceeding $200,000, and for couples with joint earnings greater than $250,000. Also, high-income taxpayers will be subject to a surtax of 3.8% on unearned income, such as capital gains, dividends, annuities, and rental income.
- The law imposes a 10% tax on the amount paid for indoor tanning services.
As provisions go into effect and more details become known, it will be important to update your investments and insurance plans to minimize your tax burden, get the most insurance for your money, and stay in compliance with the law.
March 2010 Newsletter
March 9, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The March 2010 Newsletter is now available. It includes an investment market update, Part II in my series on how to tap into your home equity in retirement, considerations in evaluating an early retirement offer, information on 2009 tax deduction for 2010 Haitian relief contributions, 2011 tax rate proposals found in the federal budget, credit card act provisions, and a reminder on the deadline to take advantage of the home buyers credit. Click here to read it.
January 2010 Newsletter
January 12, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The January 2010 newsletter is now available. Beginning in 2010, it will be published the second week of each month. This month’s newsletter includes a brief 2009 market update, an update on the estate tax for 2010, how to conduct a home inventory, and more. Click here to read it.