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In 2025, millions of retired Americans will see a 2.5% cost-of-living adjustment for benefit payments, according to the Social Security Administration. The Social Security Administration on Oct. 10 unveiled a higher threshold for earnings subject to Social Security payroll taxes, known as the “taxable maximum” or “wage base.”The limit shifts annually based on the national average wage index. How the Social Security tax calculation worksThe Social Security payroll tax rate is 12.4%, with workers paying 6.2% through paycheck deductions. Concerns over Social Security solvencyThe latest Social Security adjustments come amid growing concerns about the program’s solvency. In the meantime, some advocates have pushed to increase the Social Security wage base to provide more funding.

Persons: Sean Lovison, “, Lovison, ’, Alicia Munnell Organizations: Social Security Administration, Social, Social Security, Medicare, Security, Center for Retirement Research, Boston College Locations: Philadelphia

☆ This 'bucket strategy' could lower your taxes in retirement — here's how to maximize it
▼ + stars: | 2024-07-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Many retirees don't think about taxes until it's time to withdraw funds from a pretax account, which can be a costly mistake, financial experts say. Only 3 in 10 Americans have a plan to reduce taxes on retirement savings, according to a Northwestern Mutual study from January that polled roughly 4,600 U.S. adults. However, the "bucket strategy" is one way to minimize that burden, according to certified financial planner Sean Lovison, founder of Purpose Built Financial Services in the Philadelphia metro area. More from Personal Finance:Bigger IRA balances can be a 'tax nightmare' in retirement, advisor saysIs holding too much cash a mistake? Roth conversions transfer pretax or nondeductible IRA money to a Roth IRA, which won't incur levies on future withdrawals.

Persons: Sean Lovison, Trump, Lovison, Roth Organizations: Northwestern Mutual, Finance, Roth IRA Locations: Philadelphia

☆ You could score a tax break for hiring your own kids this summer — if you follow the rules
▼ + stars: | 2024-05-27 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

"If your child's income falls within the limits, they may not owe any income tax, which can be a win-win," said Lovison, who is also a certified public accountant. If your child's income falls within the limits, they may not owe any income tax, which can be a win-win. What to know before hiring your kidsBefore hiring your children, it's important to know state and federal labor laws, along with tax rules, experts say. "Some states pretty much ban you from hiring children under the age of 14 under any scenario," Lovison said. Payments to children are subject to income tax withholding regardless of the child's age, according to the IRS.

Persons: Sean Lovison, Lovison, Roth, Carol Fabbri Organizations: Social, Advisors, IRS Locations: Philadelphia, , Colorado

☆ IRS expects ‘a million returns' every hour on Tax Day, commissioner says. What last-minute filers need to know
▼ + stars: | 2024-04-15 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

If you're missing tax forms, the tax deadline is your last chance to file an extension, which pushes the filing deadline to Oct. 15. Sean Lovison Founder of Purpose Built Financial ServicesAccording to the IRS, those who can't pay taxes by the deadline have options. Most Americans qualify for IRS Free File, which offers free guided tax prep software from several partners. "It's a product that we're very proud of," Tim Hugo, executive director of the Free File Alliance previously told CNBC. This season, millions of taxpayers also qualify for IRS Direct File, a free tax filing pilot program from the IRS.

Persons: Sean Lovison, Werfel, Tim Hugo Organizations: IRS, Alliance, CNBC, Treasury Locations: filers, Maine, Massachusetts, Philadelphia, Arizona , California, Florida , Massachusetts, Nevada , New Hampshire , New York, South Dakota , Tennessee , Texas, Washington and Wyoming

☆ This move could help protect your portfolio from volatility as stocks trade near their highs
▼ + stars: | 2024-03-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

There's a party happening in stocks in 2024, and though investors may be reluctant, it could be time to think of taking a few chips off the table. My portfolio has recovered [from 2022],'" said Marguerita Cheng, certified financial planner and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland. "I tell people we're not selling everything, but we need to give the portfolio the TLC it deserves – this is the fine-tuning of your portfolio," she added. Be tax aware: Investors may be wary of selling highly appreciated holdings within their taxable accounts, which can incur levies on capital gains. Cheng of Blue Ocean has been turning toward dividend payers, as well as small and midcap stocks.

Persons: There's, they're, Marguerita Cheng, it's, Morningstar, Carla Adams, –, Sean Lovison, Cheng, Russell, Matson, – that's, It's, Jon Ulin Organizations: Nasdaq, Dow Jones, Netflix, Blue, Global Wealth, CNBC's, CFP, Ametrine, Investors, redeploy, Pfizer, Micron Technology, Holdings, Federal Reserve, Ulin, Wealth Management Locations: Gaithersburg , Maryland, Lake Orion , Michigan, Moorestown , New Jersey, SDVY, Boise, Boca Raton , Florida

☆ This tax-smart charitable donation strategy is like 'hitting two birds with one stone,' advisor says
▼ + stars: | 2023-11-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

The strategy, known as qualified charitable distributions, or QCDs, allows retirees to transfer money from an individual retirement account to an eligible nonprofit organization. "It's like hitting two birds with one stone," said certified financial planner Sean Lovison, founder of Philadelphia-area Purpose Built Financial Services. If you're age 70½ or older, you can use a QCD to donate up to $100,000 for 2023. How QCDs provide a tax breakSince 2018, there's been a higher standard deduction, which makes it tougher to claim a tax break for charitable gifts. If you're age 73 or older, QCDs can also cover your required minimum distributions, which otherwise would have boosted income, experts say.

Persons: there's, Sean Lovison, Marguerita Cheng, Kevin Brady, aren't, Ольга Носова Organizations: Blue, Global Wealth, CNBC's, Social Security, Wealthspire Advisors Locations: Philadelphia, Gaithersburg , Maryland, New York

☆ HSAs are a 'powerful, yet underutilized' financial tool, says CFP—how to take advantage during open enrollment
▼ + stars: | 2023-11-20 | by ( Ryan Ermey | ) www.cnbc.com time to read: +4 min

But as you're considering your options, financial advisors would like to make sure that you're taking one crucial financial tool into account. If your employer offers a high-deductible health plan (those with deductibles of at least $1,500 for individuals or $3,000 for families), those who enroll in it gain access to a health savings account. Some 81% of accountholders keep HSA money in cash, according to a recent survey from the Plan Sponsor Council of America. "This feature positions HSAs not just as a tool for current medical expenses, but as a strategic component in long-term financial planning." Under this convention, you'd pay for medical expenses out of pocket in the short-term in order to reap the benefits of long-term compounding growth.

Persons: Sean Lovison, HSAs, whatever's, Michelle Fait, you've Organizations: of America, Investments, Fidelity, Satori Financial Locations: Moorestown , New Jersey, Seattle , Washington

☆ Watch for this 'phantom tax' before taking Affordable Care Act insurance subsidies, advisor says
▼ + stars: | 2023-11-16 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

d3sign | Moment | Getty ImagesAs millions of Americans compare health plans on the Affordable Care Act insurance marketplaces, experts say it's critical to run projections and rethink popular tax moves before enrolling in subsidies. The average enrollee is paying premiums of $124 per month after the subsidies, which were boosted through 2025 via the Inflation Reduction Act. If your actual income exceeds your estimates, you might be required to repay some or all of the subsidy. "If your actual income exceeds your estimates, you might be required to repay some or all of the subsidy." The subsidy eligibility calculation also considers your location, family size and whether you spouse has available coverage.

Persons: Tommy Lucas, Moisand Fitzgerald Tamayo, Lucas, Sean Lovison Organizations: Affordable, American, Center of Budget, Security, Philadelphia Locations: Orlando , Florida

☆ Three tips to maximize benefits during open enrollment
▼ + stars: | 2023-11-08 | by ( Chris Taylor | ) www.reuters.com time to read: +4 min

More than two out of three employees (67%) spend less than 30 minutes reviewing benefits options during open enrollment season, while almost half spend less than 20 minutes, a new Voya Financial survey shows. To get enrollment over with quickly, more than 90% of employees click the same options as last year, a new report by insurer Aflac shows. Compound that figure from enrollment every November, and you can see how your options can create a solid financial future or a shaky one. "Open enrollment isn't just a formality. After all, things might have changed since the previous open enrollment.

Persons: Eric Thayer, Sean Lovison, Jack Heintzelman, Spenser Liszt, Liszt, Nate Black, Black, it's, Chris Taylor, Lauren Young, Richard Chang Organizations: Macy's, of Labor Statistics, Employers, Employees, Thomson Locations: New York, Moorestown , New Jersey, Needham Heights , Massachusetts, Dallas

☆ IRS: Meet this Sept. 15 deadline to 'avoid a surprise at tax time'
▼ + stars: | 2023-09-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Sept. 15 is fast approaching — and if you're not withholding taxes from your income, it's time to send a payment to the IRS. Many employers withhold taxes from every paycheck, but freelancers, self-employed workers, small business owners, investors and others pay on their own via quarterly estimated tax payments. Typically, you must make quarterly estimated payments if you're expecting an annual tax liability of $1,000 or more. Last week, the IRS reminded filers that these payments can help "avoid a surprise at tax time." It's important to calculate tax payments accurately, pay on time and to consider meeting the "safe harbor" rule to avoid underpayment penalties, Lovison said.

Persons: filers, homebuyers, Sean Lovison, Lovison Organizations: IRS, Finance, WJL Financial Locations: Philadelphia

☆ IRS: Meet this June 15 deadline to 'avoid a surprise at tax time'
▼ + stars: | 2023-06-13 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The due date for 2023 second-quarter estimated tax payments is June 15, which applies to income without withholdings, such as self-employment earnings, investments, gig economy work and more. Some filers also make quarterly payments when their employer doesn't withhold enough from each paycheck. Last week, the IRS reminded filers to consider quarterly payments to "stay current and avoid a surprise at tax time." It's important to calculate tax payments accurately, pay on time and to consider meeting the "safe harbor" rule to avoid underpayment penalties, Lovison said. "Keep records, monitor your tax situation, and seek professional guidance for a smooth tax experience," he said.

Persons: filers, Sean Lovison, Lovison Organizations: IRS, Finance, WJL Financial Locations: Philadelphia

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