December 2022

Helping to Plan and Manage Your Financial Future as Your Fiduciary Partner

What'sYour Plan?™

In this newsletter... Year-end financial adjustments Increased retirement savings limits Medicare IRMAA letters sent - be sure to review Federal Student Loan Payment Pause HSAs - time to adjust your contributions for 2023 Webinar recordings and articles available

There's still time to make a few end-of-year financial adjustments - review our suggestions

2023 Saving Limits New and higher limits provide opportunities to save more for retirement!

401(k), 403(b), 457(b) and Thrift Savings Plans: $22,500 + $7,500 catch-up IRA and Roth IRA: 2023: $6,500 + $1,000 catch-up HSA: $7,750 (family)/$3,850 (single), including any employer contributions

Did you review your IRMAA letter?

In late November, Medicare mailed and posted the 2023 IRMAA (Income Related Monthly Adjustment Amount) letters. You may owe Medicare Part B and D surcharges in 2023 based on your 2021 income. REMINDER: In 2022, the IRMAA surcharge was based on 2020 income when RMDs were not required. Therefore, you may see a bigger-than-expected change in your Modified Adjusted Gross Income for 2021 and a related IRMAA surcharge for 2023.

There are life-changing events that will allow you to reduce or eliminate the IRMAA surcharge. Consider filing Form SSA-44 if you experienced: Marriage Divorce Annulment Death of a spouse Reduction in work hours or termination/retirement Loss of income-producing property Loss of some types of pension income Learn more about IRMAA by watching our October 2021 webinar on Medicare. Dan talks about IRMAA starting at around minute 20. Connect with us if we can help decipher your circumstances.

Federal Student Loan Payment Pause President Biden extended the student loan payment pause until June 2023. If you have Federal Student Loans, review the latest updates as detailed by our colleague and student loan legal expert, Adam Minsky, in this recent Forbes article (copy available here).

Don’t forget to increase your Health Savings Account (HSA) contribution limits for 2023!

The new HSA limit is $7,750 (family)/$3,850 (single), including any contributions you may receive from your employer. (Note that this is different than an employer contribution for a 401(k) or 403(b) plan – in those accounts, employer contributions can be on top of your annual contribution limit.)

Now is the time to calculate what your contribution limit will be in 2023. Back off any employer contributions, divide that net amount over the number of your 2023 pay periods, and work with your payroll system to modify your HSA withholdings accordingly. We're so passionate about the opportunity an HSA provides that we've dedicated a webinar and article about the topic! We're always available to review with you.

November's What's Changing for 2022 webinar recording is available.

We hope you find our webinar recordings, articles, newsletters, and other tools useful. Coming Soon Our 2023 webinar series topics and schedule! Stay tuned for more info.

‌ ‌ ‌ www.djgalli.com [email protected] Office: 781-878-2322 Fax: 781-878-6618

Daniel J. Galli offers products and services using the following business names: Daniel J. Galli & Associates - insurance and financial services | Ameritas Investment Company, LLC (AIC), Member FINRA/SIPC - securities and investments | Ameritas Advisory Services (AAS) - investment advisory services. AIC and AAS are not affiliated with Daniel J. Galli & Associates. Representatives of AIC do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your circumstances.