Dates I am out of the office

 I will be out of the office starting July 6th (our office is closed on July 5th) and won't be back until July 27th. If you need any help contact my office 320-679-5183 and check with Kristin and Robin.

Tax information for 2021

 Looking at tax information for 2021:

Required minimum distributions (RMDs) are back for 2021. Seniors were allowed to skip their RMDs in 2020 without having to pay a penalty. But the RMD suspension only applied for one year. So, anyone who is at least 72 years old by the end the year is required to take an RMD for 2021.

Many key dollar limits on retirement plans and IRAs remain the same for 2021. For example, the maximum contribution limits for 401(k), 403(b) and 457 plans stay at $19,500, while people born before 1972 can once again put in $6,500 more as a "catch-up" contribution. The 2021 cap on contributions to SIMPLE IRAs also stays the same at $13,500, plus an extra $3,000 for people age 50 and up.

The 2021 contribution limit for traditional IRAs and Roth IRAs also stays steady at $6,000, plus $1,000 as an additional catch-up contribution for individuals age 50 and up. However, the income ceilings on Roth IRA contributions went up. Contributions phase out in 2021 at adjusted gross incomes (AGIs) of $198,000 to $208,000 for couples and $125,000 to $140,000 for singles (up from $196,000 to $206,000 and $124,000 to $139,000, respectively, for 2020).

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Your Safe Money Show highlights for June 26th

 Your Safe Money Show for Saturday June 26th we’ll look at keeping the “bank of Mom and Dad” from being overdrawn. Also, this has happened to enough people I know. I thought it was time to share how to get a replacement Social Security card. And I have questions for you to ask before writing a living will. Tune in at Nice 95.5 FM KBEK at 8 a.m. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Hope you're having a great day

 

Doughnut hole with Medicare

 For years we talked about “the doughnut hole” when it comes to Medicare, so I thought I’d explain that today. In 2020 the dreaded Part D "doughnut hole" was filled. That hole is a coverage gap in which you used to face much higher out-of-pocket costs for your drugs, but that is no longer the case. For 2021, the coverage gap begins when the total amount your plan has paid for your drugs reaches $4,130 (up from $4,020 in 2020). At that point, you’re in the doughnut hole, where you’ll now receive a 75% discount on both brand-name and generic drugs. Prescription drug manufacturers pick up 70% of that tab and insurers 5%. You pay the remaining 25%. Catastrophic coverage, with the government picking up most costs, begins when a patient's out-of-pocket costs reach $6,550, the maximum spending limit for beneficiaries in 2021, which is $200 higher than 2020’s cap. Any deductible paid before you entered the doughnut hole counts toward that annual maximum as does the 25% you contributed while in the doughnut hole and the 70% that pharmaceutical companies paid on your behalf. If you'd like more information on the "doughnut hole" with Medicare or any other aspect of Medicare call 320-679-5183, or go to yoursafemoneyshow.com.

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June 19th Your Safe Money Show information

 Coming up on our Saturday June 19th edition of Your Safe Money Show. I'll be sharing things you want to understand about your 401(k) account, kind of an insider fact sheet. Also, I’ll have 2 essential strategies for you to use when taking your RMD’s (required minimum distributions). And house sales are through the roof, before selling your house I have insight with your homeowners’ insurance.

Listen at 8 a.m. at Nice 95.5 FM KBEK. They stream live at kbek.com.

Hear recent shows at our podcast page at yoursafemoneyshow.com.

A little humor on your Wednesday

 

Medicare Advantage Plans

 I want to continue sharing some tidbits about Medicare this week, specifically about Medicare Advantage plans. You can choose to sign up for traditional Medicare: Parts A, B and D, and a supplemental Medicap policy. Or you can go an alternative route by signing up for Medicare Advantage, which provides medical and prescription drug coverage through private insurance companies. Also called Part C, Medicare Advantage has a monthly cost, in addition to the Part B premium, that varies depending on which plan you choose. With Medicare Advantage, you don't need to sign up for Part D or buy a Medicap policy. Like traditional Medicare, you'll also be subject to co-payments, deductibles and other out-of-pocket costs. In many cases, Advantage policies charge lower premiums than Medicap plans but have higher cost-sharing. Your choice of providers may be more limited with Medicare Advantage than with traditional Medicare. If you have questions or when you get your Red, White, and Blue card give me a call and I'll do Medicare 101 for you. There's no cost or obligation. Call for an appointment at 320-679-5183.

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Your Safe Money Show June 12th topics

 Coming up on our June 12th (Saturday) Your Safe Money Show. I have retirement distribution strategies that will make your money last longer. Also, I have hard truths about retirement that you need to know about. And there’s finally lower cost hearing aid devices that can really help and not take so much out of your pocketbook.

Listen at 8 a.m. at Nice 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at the podcast page at yoursafemoneyshow.com.

Saving on your next road trip

 Higher prices at the pump this year over last year are inevitable, but consumers can still end up overpaying for gas without some planning. Here are a few ways to cut gas costs: Shop around and use a gas app. Some of the apps available include GasBuddy, Gas Guru and the AAA TripTik Travel Planner. Next pay attention to state lines. When traveling understand that fueling before crossing into a high-cost or high-tax state can be worth the savings. And consumers can also consider using their most fuel-efficient vehicle when they have the option to do so. If you have two vehicles use the one that gets the best mileage when taking a longer trip. Enjoy your next road trip and with a little planning you can save some money too.

Signing up for Medicare

 You know there are some questions I get the most often and one of them is “When to sign up for Medicare”? If you are already taking Social Security benefits, you will be automatically enrolled in Parts A and B. You can choose to turn down Part B, since it has a monthly cost; if you keep it, the cost will be deducted from Social Security if you already claimed benefits. If you have not started Social Security, you will have to sign yourself up for Parts A and B. The seven-month initial enrollment period begins three months before the month you turn 65 and ends three months after your birthday month. To ensure coverage starts by the time you turn 65, sign up in the first three months. If you are still working and have health insurance through your employer (or if you’re covered by your working spouse’s employer coverage), you may be able to delay signing up for Medicare. But you will need to follow the rules and must sign up for Medicare within eight months of losing your employer’s coverage to avoid significant penalties when you do eventually enroll. I do what I call "Medicare 101". When you get your red, white and blue card in the mail call Todd. I'd be happy to explain Medicare and help you find a plan that works best for you. I handle all major carriers. Call 320-679-5183 for an appointment there's no cost or obligation. I am a licensed agent.

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June 5th highlights for Your Safe Money Show

 Your Safe Money Show is heard on Nice 95.5 FM at 8 a.m. Saturdays. I mentioned last week that I spoke to a veteran’s group recently about “scams” and mortgage scams are one they hadn’t heard much about so I thought I would share that information with you on this weeks show (6-5). If you haven’t been able to see your aging parents for a while because of the pandemic and you’re going to visit them soon, be ready to have a to-do list. Also, when is the best time to convert a Roth IRA so it pays off the best for you. If you can't listen on Saturday mornings go to yoursafemoneyshow.com to hear shows at our podcast page. KBEK does stream live at kbek.com.

Updated Social Security statements

 I have some news about online Social Security statements. The Social Security Administration (SSA) has rolled out a redesigned statement that shows you how enrolling for benefits at various ages — from 62 to 70 — impacts the size of your monthly benefit. The new statement debuted on May 1. The SSA is in the process of gathering feedback on the redesigned statement. An SSA spokesperson says that the new statement is intended to “streamline and clarify the messaging” of the program, making it easier for people to find key information “at a glance.” To get signed up for My Social Security account go to ssa.gov.

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