5.2% Federal Pay Raise in 2024 Anticipated before the end of December, an executive order is set to be issued, detailing the 2024 pay tables. The forthcoming pay raise is noteworthy, as it is poised to be the most substantial increase for Federal employees since the 1980 pay raise of 9.1% under Carter. The proposed pay raise for 2024 stands at an impressive 5.2%. Christmas recess is underway for the House of Representatives and will reconvene in the new year.
Exploring the Benefits of a Roth IRA Conversion: Key Considerations and Tips Roth conversions have become an important topic of conversation with our clients. There are several reasons for this: Cheaper cost on the conversion when investments are down (fewer taxes owed) Anticipation of taxes going up RMDs pushing you into a higher tax bracket Tax-free growth What is a Roth Conversion? A Roth IRA conversion is a strategy that transfers traditional retirement funds into a Roth IRA.
IRS Tax Penalty Jumps to 8% – Big Surprise Coming to Millions of Americans As of Oct. 1, the Internal Revenue Service has increased the interest rate for tax underpayments to 8% which comes in much higher than the interest rate of 3% just two years ago. The IRS determines the interest rate every quarter using the federal short-term rate plus three percentage points for most individual taxpayers. Rising interest rates are the cause of the large spike. Who
Maximizing Your Tax Benefits in 2023: Tips for Tax-Loss Harvesting There are silver linings with every up and down market. In 2023, asset classes have been moving between positive and negative territory all year. In the years when the market is down, it becomes very attractive to rebalance portfolios, purchase undervalued investments, conduct Roth conversions, and take advantage of tax-loss harvesting. How about for 2023? We have started to see the market trending into posititve territory and that begs the
Medicare Advantage (Part C) vs Medicare Supplement (Medigap) Medicare Advantage (Part C) and Medicare Supplement Insurance Plans also known as Medigap are crucial elements to your financial wellbeing in retirement. Big decisions must be made the year you turn age 65 (or at retirement if after age 65). Both Medicare Advantage and Medigap will pay some or all of the costs not covered by Original Medicare (Parts A and B). There are distinguishing features that each offers so it is
Will Delaying Social Security to 2024 Cause You to Miss the 3.2% COLA? The Social Security Administration announced that it would be increasing benefits by 3.2% in 2024. The 3.2% COLA for 2024 is significantly lower than the 8.7% COLA beneficiaries received in 2023. This is because inflation has moderated over the past year. What is the Cost-Of-Living Adjustment (COLA)? The purpose of the COLA is to ensure that the purchasing power of Social Security is not eroded
New FERS Employees Pay 450% MORE Into the Same Retirement System We were surprised to see there has been no conversation around such a large increase to new FERS employees. If you entered service after 2014 you are paying 450% MORE into the same system. New FERS employees are paying 4.4% for the same exact pension that at one time only cost 0.8%. In total new FERS employees are having 12.05% deducted from their paychecks right off the top for
Understanding the CSRS Offset Pension and Coordination with the Windfall Elimination Provision In this article, we will dive into the Civil Service Retirement System (CSRS) Offset pension and how CSRS Offset coordinates with the Windfall Elimination Provision (WEP). Over the years we have found that CSRS offset employees are generally left confused about how their pension is offset and the calculation WEP uses to reduce Social Security. It is important to have a clear understanding of how both the CSRS
2024 Federal Pay Calendar – Save 2 “Free” Paychecks in the New Year! Are you looking to boost your savings and get on top of your finances in the coming year? Well, we have an exciting opportunity for you! In 2024, you have the chance to save not just one, but two extra paychecks. Yes, you read that right! By understanding the pay periods and using a strategic budgeting hack, you can make the most out of your income and put
Understanding Your FEHB Coverage as a Survivor Annuitant: Continuing Federal Benefits As a Federal employee, it is crucial to have a good understanding of your Federal Employee Health Benefits (FEHB) coverage. This becomes even more important if you are a survivor annuitant, which means you are the surviving spouse or eligible family member of a deceased federal employee or retiree. Did you know that a surviving spouse can be removed from FEHB if the Federal annuitant predeceases him/her? Proper planning
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