As we welcome the new year, we want to help you refocus on your personal financial plan. Here are a few things to keep in mind for a successful 2021, including some reminders from the SECURE Act which took effect in January 2020.
Contribution Limits for Retirement Accounts
SECURE Act Reminders – began 1/1/2020
Required Minimum Distributions (RMDs): RMD age increased from 70 ½ to 72. First RMDs must now be taken by April 1 of the year following the account holder turning 72.
Note: The CARES Act of 2020 suspended all distribution requirements for 2020.
Withdraw Rules for Inherited IRAs: For new inherited IRAs opened in or after 2020, there is no longer a minimum amount that non-spouse beneficiaries mustwithdraw annually.However, the entire balance must be withdrawn by most heirs within 10 years of the original account holder’s death. (Spouse beneficiaries are exempt from this rule.)
The Cost of Living Adjustment for 2021 is 1.3%.
Medicare Part B Premium & Surcharges
The standard Medicare Part B premium amount in 2021 is $148.50
However, Medicare beneficiaries that had higher incomes in 2019 could pay more in 2021. Those who had Modified Adjusted Gross Income in 2019 of $88,000+ for individuals, or $176,000+ for married couples, will pay additional surcharges ranging from $59.40 to $356.40 per month on top of the standard Part B premium.
If you would like to discuss any of these topics further, please get in touch with us.