Tips and Resources that Everyone Can Use
Knowledge is Retirement Power
Many people choose to continue working in some capacity while receiving Social Security benefits. However, if you’re younger than full retirement age and make more than the yearly earnings limit, your benefit will be reduced. Here’s how it works: if you are under full retirement age for the entire year, the Social Security Administration deducts $1 from your benefit payments for every $2 you earn above the annual limit (for 2023 that limit is $21,240). In the year you reach full retirement age, they deduct $1 in benefits for every $3 you earn above a different limit ($56,520 in 2023), but they only count earnings before the month you reach your full retirement age. Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings. Check out the Social Security Administration’s Retirement Earnings Test Calculator for more information.
Will a 401(k) loan appear on my credit report?
Loans from your 401(k) are not reported to the credit-reporting agencies. However, if you are applying for a mortgage, lenders will ask you if you have such loans and they will count the loan as debt. While taking out a loan from your 401(k) may seem to have a few advantages, you’ll lose out on the tax-deferred growth opportunity on the loan amount. Try to focus instead on building up an emergency savings account instead.
Midyear is a good time for an insurance checkup—and not just to make sure you’re getting the most competitive rates. For example, it’s a good idea to pull copies of your policy documents to ensure you have adequate coverage or conduct a review with your insurance agent, especially for property-casualty policies. In addition, review your retirement plan contribution rate this year (did you increase it like you promised yourself back on January 1st?) Make sure to contribute at least enough to receive the full employer match (if offered).
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. The information provided has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.
Securities offered through LPL Financial Member FINRA/SIPC. Investment Advice offered through Diversified Financial Advisors, LLC, a registered Investment Advisor and a separate entity from LPL Financial.
RP-843-0523 Tracking #1-05376255 (Exp. 05/24)