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FJY News to Know #45

IRS Releases New Retirement Plan and Contribution Increases for 2020 

The contribution limit for the 401(k) will change to $19,500 — an increase of $500.  This is in lieu of a cost-of-living adjustment.  Other plans such as the 403(b) and form 457 will also see increases.  The income ranges for determining eligibility to make deductible contributions to IRAs, contributions to Roth IRAs, and to receive the Saver’s Credit will also increase for 2020.  If during the year either the taxpayer or their spouse was covered by a retirement plan at work — the deduction may be reduced or phased out until it is eliminated — depending on filing status and income. Read more here for more details and how you may want to adjust your savings plan for 2020.

 

Ever Wonder Which States Are the Least Tax-Friendly for Military Personnel?  Consider the Following Before You Retire

We all know military pensions are subject to tax.  The most obvious tax is the federal charge, but what about the state level?  The Golden State taxes 100% of its citizens’ military pensions.  Vermont is in the same category, as is Washington, D.C.!  Although the latter is home to a plethora of military personnel, there are no breaks in our nation’s capital.  Arizona offers a tax break for pensions, albeit a small one.  Montana offers an exemption on pensions, but only for a certain salary threshold.  To find out which states are most ideal for military retirement for pension holders, read this article.

 

Not a Safe Place For Bulls — Famous Statue to Move to Safer Haven

Wall Street’s famous ‘Charging Bull’ statue is due to be relocated closer to the New York Stock Exchange.  Mayor Bill de Blasio claims the move is to ‘protect the safety of New Yorkers’, however, the statue has been a target for vandalism:  In October, climate change protestors coated the bull with fake blood.  In September, a man took a banjo and started hitting the statue.  To read more about the move and see a picture of the famous statue, click here.