Lower your tax: contribute to a deductible IRA

 Rebuilding our savings: creating a tax-FREE retirement

Instead of saving and investing in an account that will force you to pay more taxes in the future, use the only legal IRS tax-haven available to working people. Your employer may offer a Roth 401k. If not, you can open a FREE Roth IRA at any low-cost mutual fund firm like Vanguard or Schwab. Your contributions of just $250 a month into a low-cost diversified stock fund will compound over time to $500,000 or more. When you retire, your entire $500,000 is tax FREE. That may mean an extra 22% to spend because you don’t have to give it to federal and state governments. That also means you may not have to pay taxes on your Social Security benefits. Right now those benefits can be taxed.

Live tax-FREE: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

 

Can $10 a day really provide a good retirement income?

Long-term investing in a simple Target Date fund can provide any working person with a comfortable retirement. How? The Miracle of Compounding—it is the strategy recommended by all great investors. Warren Buffett said: “My wealth has come from a combination of living in America, some lucky genes, and compound interest. Why is compounding a miracle? Compounding is not intuitive: you can’t visualize it when you begin. It happens slowly over time. Using a low-cost Target Date fund relieves you of making a mistake: to pick the right one at the right time. That is gambling not investing. Most wealthy people got there by compounding their savings/investing over time. And your money can earn over 11% a year since you pay no advisor fees, commissions, costs.

Help your child learn investing not gambling. https://www.amazon.com/Where-can-your-child-invest/dp/1492164240/

 

 

Will Social Security benefits really be cut by 25% in 13 years?

The trustees of SS project that benefits will be reduced by 2034 because fewer workers are contributing and the group who qualify (people age 62 and over) is growing. Those of us who have invested over our working years will have a cushion against this shortfall. However, those who have had to spend their savings during the virus crisis will need to increase their contributions to securities in order to catch up. We can’t expect to earn enough with 1-2% interest rates. Using the long-term stock market returns of over 11%, we can double our money every 7-8 years. This means that over 25 years, we can accumulate $400,000 and in 33 years, we can accumulate over $1,000,0000 on contributions of $250/month to a low-cost tax-FREE account. Taxes will go up.

Start NOW: https://www.amazon.com/Reset-Your-Retirement-Income-retirement/dp/1512304344

 

 

Have tax forms; will file … for FREE

W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. If you have all your forms, file for FREE online. Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits. Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings. Efile Jan 15; IRS processing Feb 12.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

 

Is your IRS letter a mistake for you?

A reader received a “Notice of intent to seizure (levy) your property” letter CP504 from the IRS. It claimed tax due immediately from 2019 tax return. The Reader had filed an Amended Return on April 23 2020 but the IRS was closed for virus and did not open their mail. According to their web pages, the 1040X was not assigned to be processed till October 14. It showed up on “where’s my amended return” screen as “not processed.” IRS computers don’t speak to each other so the computer for ‘Amended Returns’ did not tell the ‘Tax Collection’ computer that it should hold off sending the “we will seize your property” letter” till later. Our Reader finally got someone in collections to answer the phone (previous letter sent by the Reader in December) never got to collection folks. The Moral of the Story—take the 2 ½ hrs needed to get a real person on the phone so you have back up if the IRS tries to take your bank account or other assets later. Get a name.

See IRS taxpayer rights: Rights are great on paper but you will need a lawyer or former agent to enforce them. Avoid future taxation as much as possible.

Use IRS-approved tax haven: https://www.amazon.com/Your-Wealth-ReserveTM-Tax-FREE-Investment/dp/1484954882

 

What is covered by your $148.50 Medicare premium?

Original Medicare provides annual medical screening counseling too. Most of us don’t know what is covered by the Part B $148.50 a month. Medicare Part A for hospital charges is FREE. Medicare’s free “What’s covered” app delivers accurate cost and coverage information right on your smartphone. Now you can quickly see whether Medicare covers your service in the doctor’s office, the hospital, or anywhere else you use your phone. Make sure your chosen a provider that accepts your Medicare or Advantage plan. Talk to your doctor or other health care provider about why you need certain services or supplies. Ask if Medicare B will cover them. You may need something that's usually covered but your provider thinks that Medicare won't cover it in your situation. If so, you'll have to read and sign a notice. The notice says that you may have to pay for the item, service, or supply. If it is necessary, check on the cost before you sign. You may need the CMS code: https://www.cms.gov/medicare-coverage-database/details/article-details.aspx. You may need to do some research like this on the internet: https://bulletin.facs.org/2016/05/coding-and-reimbursement-for-colonoscopy/. Next stop is your Medicare Supplement policy. You may have chosen a plan that covers your needs in previous years, but it is wise to check on changes. For instance, As of January 1, 2020, Medigap plans sold to new people with Medicare aren't allowed to cover the Part B deductible. So you see few plans cover this expense and you should budget for this out of pocket. Early in retirement you may not need to buy a plan that limits your out of pocket expenses but later on this may be a smart choice. Luckily, your state price range are here: https://www.medicare.gov/medigap-supplemental-insurance-plans/. You will need to compare Part D drugs you need at retail and online druggists.

Consult the current handbook: https://www.medicare.gov/Pubs/pdf/10050-Medicare-and-You.pdf

 

 

Lower your tax: We can continue to contribute to deductible IRAs

Previously, we were not allowed to continue making contributions to Traditional IRAs once we reached age 70½. But the SECURE Act removes this age limit, effective this year. This could be beneficial for the growing number of people who are working past age 70 since they can now continue making IRA contributions indefinitely, thus enhancing their long-term retirement financial security. They can also make non-deductible contributions to their Roth IRA which is never taxes later. On the other hand, distributions from traditional IRAs must begin when we reach 72 up from age 70 1/2. However, the new rule does not apply to those already older than 70 ½ or turned 70 ½ in 2019 (born on or before June 30, 1949). Those individuals must continue or begin taking RMDs under the old rule. The SECURE Act effectively eliminated stretch IRAs as an estate planning tool. Effective for deaths occurring after December 31, 2019, funds from inherited IRAs must now be fully withdrawn by beneficiaries within 10 years of the account owner’s death. Exceptions for spouse and disabled. See a professional.

https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977

 

 

 

**********ACCOUNTABILITY**************

 

 

Like 1776, this period is a test of democracy—We rejected an "American fascist" 

 

 

Domestic terrorists hiding in Congress?

 

Dictator’s Justice Dept officials “engaged in an improper attempt” to overturn the 2020 election. 

 

31 police involved in US insurrection

 

Fascists want to kill our representatives

 

 

Our ‘Truth and Reconciliation Commission’? 

 

 

 

How Govt wastes our money:

If 100 million vaccinated in 100 days, no vaccine appts left in NJ or NY: 500,000 die by Mar?

Millions set up to make vaccines for Covid used as personal slush fund for HHS directors.

We paid for federal prison food that was fake: cheap prices since fillers provided instead

 

Supremes let dictator keep all the money his companies took illegally: dismissed his corruption

Trump tax breaks at work: billionaires grew $1.1 trillion richer: wasn’t really for middle class

Oklahoma trying to return Trump’s virus cure, hydroxychloroquine, but already paid $2 million

 

What if it were Obama? GOP Senate would convict Obama for insurrection of US in a minute

“Law and order” party OK with insurrection: no accountability for dictator: insurrection leader

 

Pentagon (Trump) kept Guard from responding sooner to Trump’s insurrection at Capitol.

Militias are terrorists: Ex military & ex police keep treat levels up: Civil War II?

 

 

SCAMS/SPINS:

Stay ahead of the misinformation: social media and cable are fun but check Bias Chart.

More misleading information rattles around in Q world: must be fun to be brainwashed.

Would you hire someone involved in an attempted coup against the United States?

 

Terrorist training camps in OH NC etc under surveillance before coup attempt: court file

Q’s brainwashed folks need therapy to get over shock: dictator did NOT take over US

America had an election: 81 million is greater than 74 million: hard to miscount 7 million

 

Many GOP leaving GOP after seeing GOP-sponsored coup: no reckoning for Trump?

The party of insurrectionists and conspiracy theorists: a True 3^rd party wants dictator

 

 

SCAM: Credit repair “Anyone that says they can hide/remove bad credit for fee is scam”

Debit card usage is dangerous: you have no recourse to scams, theft, fraud, bad credit

Trading rapid moving stock can harm your future: you could lose HALF in 15 min.

 

 

Virus variant strain hits NJ with no symptoms and no travel contact history: on the wind?

Teacher dies but bosses still refuse to wear masks: overcoming brainwashing is still hard.

SURPRISE Vatican clears retired US bishop of multiple abuse claims: kids now too old.

 

Wealthy are creating boomtown in Palm Beach: London’s best sit in lockdown empty

 

GOP passing state laws to stop future Dem voting: no mail-in, fewer machines, hours, etc

Senate GOP so afraid of dictator: no guts to stop him overthrowing the government again

Only Sen. Kinzinger has the guts to stop dictator who tried to overthrow our government.

 

Scams target seniors: more money, more trusting, more alone, more gullible

 

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

 

Is it a scam?  Check AARP scamline 877.908.3360.

 

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

Job search begins with working friends: if opening happens, you will be called first.

Google employees from across the globe are forming a union alliance: work conditions

 

 

Who owns your account now?

Keep up to date with a new stimulus process: WH news feed to your browser

Allstate Life to Blackrock but keeps New York life biz

WHO advised pregnant women against taking Moderna vaccine unless preexisting conditions. 

 

Feb 15: HealthCare.gov insurance markets to take new applications for subsidized benefits

 

Miracles:

It is a miracle: 1^st Black Defense Sec only had 2 no votes: Utah Lee; Missouri Hawley

Car charges in 10 min and goes 250 miles: Penn State says yes.

Time is running out: sea level rising faster: warm water melts glaciers from bottom too

 

Only Sen Kinzinger had the guts to stop dictator who tried to overthrow our government.

Some judges waited for Biden before retiring to avoid fascist state

 

 

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

We can apply for health care online: https://www.healthcare.gov/

 

 

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts available at http://dankeppel.blogspot.com/