The new year brings new rules when it comes to your money. Local financial expert Roger Cowen goes through the changes for 2019.
Increased Contribution Limits:
Several types of retirement accounts have increased savings contribution limits in 2019. You can save an additional $500 in both IRAs and 401(k)s this year. Maxing out your retirement savings accounts is a lofty goal, but it’s an important one to get you ready for retirement.
Divorce Tax Rules:
Starting in 2019, an ex-spouse paying alimony will no longer be able to deduct those payments on their taxes. In addition, alimony payments will not be considered as taxable income to the ex-spouse receiving the alimony.
Tax Filing Changes:
This upcoming tax season will be the first filing season under the Tax Cuts and Jobs Act. Anyone itemizing their taxes should be aware of some significant changes to the deductions they can claim.
Full Retirement Age Increases:
This year, the Full Retirement Age climbs by two months to 66 years and 6 months.
Medicare Advantage Open Enrollment:
Anyone looking to enroll in Medicare or make changes to Medicare coverage should be aware of the new Medicare Advantage Open Enrollment period that started January 1st and runs through March 31st. If you are enrolled in a Medicare Advantage plan, you can use this window to either switch to a different Medicare Advantage plan or return to Original Medicare Parts A & B.