Financial and Legacy News

Financial news that can affect those in your life: seniors, caregivers,and your family legacy. 

How to Maximize Your Retirement Accounts in 2016

Max out your 401(k). Workers can contribute up to $18,000 to their 401(k) plans in 2016. To completely max out this account, you will need to save $1,500 per month or $750 per twice monthly paycheck. A worker in the 25 percent tax bracket who tucks the full amount into a 401(k) plan will save $4,500 on his federal income tax bill. Retirement savers in the 35 percent tax bracket will save $6,300 on the same contribution. Income tax won’t be due on this money until it is withdrawn from the account. And if you drop into a lower tax bracket in retirement, you will pay that lower rate on the distributions. If you withdraw that $18,000 while in the 15 percent tax bracket, you will only ultimately pay $2,700 on that contribution.
Make catch-up contributions. Workers age 50 and older can contribute an additional $6,000 to a 401(k) plan in 2016, for a total contribution of $24,000. “If you will turn 50 this year, that’s an additional $6,000, and it’s all deferred income from taxes,” says Helga Cuthbert, a certified financial planner for Cuthbert Financial Guidance in Decatur, Georgia. Hitting this 401(k) limit requires saving $2,000 per month. Saving this much will reduce your tax bill by $6,000 if you are in the 25 percent tax bracket and $8,400 if you pay a 35 percent federal income tax rate.’


Tips for Choosing a 401(k) Plan.

401K image

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401(k) plans are a common employer-sponsored benefit that enables workers to set aside money from each paycheck towards their retirement. The ultimate goal of 401(k) plans is for employees to put their money in a privileged account that will enable it to grow for years to come. So how do you decide which kind of 401(k) plan is best for you? Very carefully.

Certain programs enable employees to rollover or convert all or part of their funds into different kinds of 401(k) plans or individual retirement accounts (IRAs). These scenarios are a bit more complicated and rely upon what your career choices look like in the near and distant future, as well as the options listed in your employer’s 401(k) program.  READ MORE here. 

Friends of logo

Remembering ElderSource in Your Planned Giving.
You can make a gift that costs you nothing during your lifetime.

Planned gifts create unique opportunities for donors to support organizations that share like-minded values such as ElderSource’s. A planned gift balances your desire to support Friends of ElderSource with your overall financial, tax, and estate planning goals. Planned giving may also allow you to make a larger gift than you thought was possible. It is important to determine what gift is right for you. There are many options from which you can choose, depending on what you wish to accomplish for yourself, your family, and your charitable interests in your overall estate and financial plans.

Here are a few ideas to leave a legacy with ElderSource.

Options for Planned Giving:

  • Make an unrestricted will/bequest
  • Donate your life insurance proceeds
  • Gift securities held in your name
  • Donate proceeds from a retirement plan
  • Create a Charitable Lead Trust
  • Create a Charitable Remainder Trust
  • Gift title to real estate you own

Donors must consult their tax and legal advisers regarding their specific situation or interest. For more information about making a planned gift to ElderSource, or if you have already made arrangements to do so, please contact us so we may help you with the process. For direct questions contact Heather Corey, Director of Development, at (904) 391-6679 or by email to


  10 Ways to Make Your 401(k) Balance Grow Faster

Written by  Emily Brandon  with USA Today

Boost your balance.

Used correctly, a 401(k) account allows you to take advantage of employer contributions, tax breaks and automatic saving. But you also need to take care to avoid excessive fees and penalties that will reduce your returns. Here’s how to maximize the value of your 401(k) plan.

Contribute automatically.

Having contributions automatically withheld from your paycheck gets money into your retirement accounts in the most efficient way possible, and you don’t have to worry about forgetting to make contributions every month. There’s little temptation to spend the money because it never hits your checking account.

Read more here. 


elderly parents

Can I Claim My Elderly Parent as a Dependent?

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It isn’t just time, but money that most caregivers donate to help maintain the ones they love. When tax time rolls around, you may be able to claim your parent as a dependent on your income taxes. This would allow you to get an exemption for him or her. 

In order to claim your elderly loved one as a dependent on your taxes, you must meet certain criteria.Any dependent must meet these tests, according to tax experts at

  • You (the caregiver) cannot be claimed as a dependent by another taxpayer.
  • They must be a resident of the U.S., Canada or Mexico.
  • They cannot file a joint tax return with a spouse.

Relationship- The person who you want to claim as a dependent must be a relative. Relatives who may qualify – but do not have to live with you – include: mother, father, grandparent, stepmother, stepfather, mother-in-law, father-in-law. Elder’s income- Your loved one’s gross income for the year must be less than $3,950.  READ MORE here. 


SOCIAL-SECURITY-TAXESBudget deal could mean less Social Security for couples.

Written by Katie Lobosco via CNN.Com -Money  news.
Some couples will be getting less from Social Security than they expected after Congress passed a budget deal early Friday that changes the way you can claim your benefits.It could take away tens of thousands of dollars for some couples over the course of their retirement.

The rule change goes into effect for new retirees starting in six months. It eliminates a claiming strategy known as “file and suspend.” Basically, it takes away up to four years of spousal benefits that some people claim before filing for their own benefits. Continue reading… CLICK HERE

 Happy Smiling Chinese Elderly Couple Standing in front of New House6 reasons to remain in your current home in retirement.

Written by Tom Sightings via Yahoo Finance news.The typical retirement dream involves riding off into the sunbelt, golf clubs and beach umbrella in hand. However, the reality is that the majority of retirees never leave home. Most people opt to age in place, or if they do move, they find a smaller house near their old neighborhood.

Only about 7 percent of older Americans move every year, according to a long-term study by the Center for Retirement Research at Boston College. And even though more people have recently been relocating with the improving economy, an AARP survey found that most people approaching retirement hope to remain in their current residence as long as they can.
Here’s why retirees resist the siren call of the beach and tropical breezes: Continue reading… CLICK HERE. 

*NOTE: These articles are a collection of news and updates found online on public website.  As always, please consult your personal attorney and/or financial adviser for information that is best for you and your family. 

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