Retirement planning is a must in the world of today. In order to always stay updated with the latest trends and developments in the retirement savings paradigm, you need to know it all. During 2016, there are some stark changes to be seen made to the normal retirement accounts, social security and other areas. We have highlighted some of these areas:
Ways retirement savings would change:
The new myRA:
- Also Read: TRICARE Has Limits—What Civilian Military Employees Must Know Before They Retire
- Also Read: The Special Retirement Supplement for FERS Employees: Why It’s a Game-Changer for Retirees
- Also Read: Your Retirement Isn’t Fully Planned Until You Have a TSP Withdrawal Strategy
Obama’s budget strategy:
The budget proposal laid forward by the President indicated that the tax breaks that would normally be applied for the unrealized appreciation of retirement accounts will be eliminated. IT’s to be noted that this has not been approved yet.
Increase in the saver credit threshold:
People who make a considerably better amount of money will have a change to qualify for the saver’s credit. The limit has increased from 250 to 30 thousand and 750 dollars for the single filers. For the married couples, it has risen to 61,500 dollars.
Savers to fall in need of a new “file and suspend” methodology:
Another change that will affect retired couples. Some federally employed couples have tried to scoop away the SS benefits unlawfully and this is now going to change.
No restricted applications; not anymore:
The restricted application option is now being eradicated. This would eliminate the luxury available to couples to file the “restricted application” once they reach the full retirement age and get spousal SS benefits.
