Author Archive
Benefits
Open Season: FSAs, HSAs and Health Reimbursement Arrangements
This week, Edward A. Zurndorfer examines another important decision that employees have to make during the 2014 federal benefits open season: Whether to enroll or reenroll in a health care flexible spending account (HCFSA) and a Dependent Care Flexible Spending Account (DCFSA) for the 2015 plan year.
Benefits
Open Season: Premium cost should not be a main consideration in choosing an FEHB Plan: Part II
This second of two Federal Soup Open Season columns explaining medical, dental and vision insurance choices for employees examines point-of-service (POS) plans, consumer driven health plans (CDHP) and high deductible health plans (HDHP).
Benefits
OPEN SEASON: Premium cost should not be a primary consideration when choosing an FEHB Plan for 2015: Part I
In the first of two columns explaining medical, dental and vision insurance choices for employees, Edward A. Zurndorfer discusses fee-for-service (FFS) plans (including FFS plans with preferred providers) and health maintenance organizations (HMOs).
Financial Planning
Informed Investor: Gain from sale of residence may be non-reportable and non-taxable
During 2013, residential real estate sales increased significantly across the country. For individuals who sold their principal residences at a gain, there is good news. Internal Revenue Code (IRC) Section 121 allows qualifying individuals to exclude from income and taxes as much as $500,000 resulting from the sale of their principal residence. This week’s column discusses the prerequisites to use IRC Section 121.
Financial Planning
Informed Investor: All interest income must be reported on a tax return
This week’s column discusses how interest income is reported on one’s income tax return. Reportable interest income includes bank and credit union paid interest, interest paid on insurance dividends, interest paid on IRS tax refunds, interest paid on Series EE and I U.S. Savings Bonds, and tax-exempt interest income such as municipal bond interest.
Financial Planning
Informed Investor: Protect your tax Identity
Recent data breaches at Target stores and an increase in the number of tax identity thefts should alert all individuals about the problem of identity theft. This week’s column discusses what to do to prevent identity theft, and the steps one should take if one has become a victim of tax identity theft.
Retirement
Informed Investor: Understanding TSP contribution limits: Part II
This second of two columns discussing Thrift Savings Plan (TSP) contribution limits examines what happens if an employee contributes to more than one defined contribution plan during the year. Those employees whose total contributions to multiple plans during 2013 exceeded the annual contribution limits need to take action before March 15, 2014.
Retirement
Informed Investor: Understanding TSP contribution limits: Part I
The Internal Revenue Code limits how much employees can contribute annually to qualified retirement plans and to the Thrift Savings Plan (TSP). The first of two columns discussing the elective deferral limit discusses the consequences of an employee’s reaching the limit before the last pay date of 2014.
Retirement
Informed Investor: FERS annuitants receiving supplement need to be aware of 'earnings test'
FERS employees who retire during 2014 need to be aware of the “earnings test” that applies to the FERS annuity supplement. FERS annuitants younger than age 62 automatically receive the annuity supplement. This week’s column discusses how the earnings test is applied, resulting in a partial or full loss of the annuity supplement.
Retirement
Informed Investor: Employees retiring in 2014 should be aware of Social Security 'earnings test'
Employees retiring during 2014 and who plan to immediately start receiving their Social Security retirement benefits need to be aware of the Social Security “earnings test.” This week’s column discusses how the earnings test affects Social Security recipients younger than full retirement age and who have “earned income,” which includes salary and self-employment income.
Financial Planning
Informed Investor: Now is a good time to make deductible traditional IRA contributions
Employees born after June 30, 1943, are eligible to contribute to a traditional IRA for 2013. This week’s column discusses who is eligible to contribute to a deductible traditional IRA for 2013, traditional IRA contribution limits, how much of the contribution is tax deductible, and the deadline for contributing.
Financial Planning
Informed Investor: Year end is deadline for non-spousal beneficiaries to receive minimum required distributions
Employees who are the non-spousal beneficiaries of inherited IRAs should be aware of the minimum required distribution (MRD) rules for inherited IRAs. This week’s column discusses MRD rules for inherited IRAs, with an emphasis of the Dec. 31, 2013, deadline for non-spousal IRA beneficiaries whose original IRA owners died before Jan. 1, 2013.
Benefits
Open Season: FSAs, HSAs and Health Reimbursement Arrangements
An important decision that employees have to make during the 2013 federal benefits “open season” is whether they want to enroll, or reenroll, in a Health Care Flexible Spending Account (HCFSA) and a Dependent Care Flexible Spending Account (DCFSA) for the 2014 plan year.
Benefits
Open Season: Selecting an FEHB plan: Don't focus solely on premiums—Part II
This second of two columns explaining medical, dental and vision insurance choices for employees discusses point-of-service (POS) plans, consumer driven health plans (CDHP) and high deductible health plans (HDHP).
Benefits
Open Season: Selecting an FEHB plan—Don't focus solely on premiums: Part I
Rising health insurance premiums are a reality for most individuals today and the FEHB program is no different. FEHB premiums will increase on average by 3.7 percent in 2014 over 2013 FEHB rates, slightly higher than the 2013 average increase of 3.4 percent. But when selecting a health insurance plan for 2014, employees should not focus solely on premiums as criteria for choosing the “best” FEHB plan.
Benefits
Informed Investor: What is an 'insurable interest' for life insurance or survivor annuity purposes?
A life insurance company allows an “insurable interest” to be named as a life insurance policy beneficiary. The Office of Personnel Management also permits an insurable interest to be named as a CSRS or FERS survivor annuitant. This week’s column discusses who is a legitimate insurable interest for life insurance beneficiary and survivor annuity purposes.
Benefits
Informed Investor: Are there viable alternatives to long-term care insurance?
Many employees have been advised by their financial advisors to buy long-term care (LTC) insurance in order to have a financially stable retirement. But LTC insurance may not be appropriate for some individuals. This week’s column presents some alternatives to buying LTC insurance, including a home equity line of credit, a refinanced mortgage, life insurance and annuities.
Benefits
Informed Investor: Evaluating life insurance coverage and needs, Part IV: Viatical settlements
This last of four columns during September discussing life insurance to mark “Life Insurance Awareness Month” examines what policyholders should know about viatical settlements. Rather than terminating a life insurance policy and losing all premiums previously paid, with a viatical settlement the policyholder receives a cash settlement.
Benefits
Informed Investor: Evaluating life insurance coverage and needs, Part III: Accelerated death benefit
This third of four columns during September discussing life insurance to mark “Life Insurance Awareness Month” examines the accelerated death benefit (ADB) rider—including what the ADB rider is, which policy owners qualify for it, what it can be used for, and how its use will affect policy beneficiaries.
Benefits
Informed Investor: Evaluating life insurance coverage and needs, Part II: Term insurance
This second of four columns on life insurance during “Life Insurance Awareness Month” examines term insurance—including the purpose of term insurance, the variation in term policies, and a comparison in premium amounts between some individual term policies and FEGLI, the group term policy available to federal employees.
