IRS Announces 2014 Roth IRA and 401K Contribution Limits

IRS made an announcement on October 31 that they will not be making any changes to the retirement account contribution limits in 2014.  This means maximum contribution pre-tax money you can add to your 401K account in 2014 will stay at $17,500 for 2014.  It is important to note that the maximum contribution limit does not apply to any amount your employer contributes to your 401K.  For example, my employer contributes 50% of what I end up adding to my total 401K contribution but maximum of 8% of total salary will not be counted towards the maximum limit of $17,500. Continue reading

Learn the Facts About the ObamaCare Penalty

By now, every American has heard about ObamaCare, also known as Health Care Reform.  ObamaCare is a health care plan for the American that provides majority of citizen the access to health insurance that is most affordable.  The health insurance is currently being offered via a Health Insurance Marketplace and the citizens can go there to receive subsidized health insurance.  You may be asking why the ObamaCare is so important to Americans since most of people like us have a decent job that provides a decent health insurance.  Many people do not know there are more than 40 million people who are unable to get health insurance.  Believe it or not, there are people who get denied of health insurance coverage and treatment because they were sick in the past or got charged more because they were women.  Now with the ObamaCare, these 40+ millions of people can get health insurance without any health discrimination.

Continue reading

Social Security Tax FED OASDI Increases in 2014

First the good news.  The government recently announced they will increase the Social Security benefits by 1.5% in 2014 for those who are already collecting social security income.  The increase is slightly less than last year, which was 1.7%.  Comparing to past historical data, these annual benefit increases are very low especially when the inflation is at around 1.2%.  This news about the increase in the Social Security benefit is relatively good news even though it’s only 1.5%.  The bad news is that the government also decided to increase the maximum base salary that is eligible for Social Security tax. Continue reading

Understanding Tax Withholdings on Your Paycheck

Taxes can be frustrating when looking at your paycheck.  It is also the first place to turn your eyes to after checking your total take home amount from your paycheck.  Tax withholding can comprise of more than 30% of your paycheck depending on which state you live in and how much you are making.  Although it can be frustrating when thinking about taxes,  you should be aware of all the different type of payroll taxes you are paying.  The tax section of your paycheck includes Fed Withholding, Fed MED EE, Fed OASDI/EE, and State Withholding. Continue reading

5 Tips on Maximizing Tax Benefit Before The Year End

As we end the year 2011 in three days, many people are looking for ways to maximize their tax refund when they file their taxes by April 15, 2012.  In general, it is a good idea to find ways to maximize tax refund in early December but you know how people can be… waiting until the last minute.  Here are top 5 tips on what you can act now to take advantage of your tax benefit and receive a bigger refund in April 2012. Continue reading