There are some changes which retirees need to go through in the year 2010. Lots of economic changes like the recession has taken place and all these factors will significantly lead to some changes on the part of the retirees. Some experts also say that the inflation may pose a big concern for the retirees as the price pf products will rise but the income will remain the same.
Here are some changes that the retirees may need to go through in the coming years:
No social security cost of living benefits: Although the present condition of the economy will not create so much inflation, it may turn out to be bad news for the recipients of Social Security. The annual increases in the social security benefits are linked with the price changes in the urban regions. Under the present circumstances, the recipients of social security will receive flat amounts.
High medicare costs: You need to pay more for the Medicare Advantage Plans next year. There has been a deduction of around 4 to 4.5 percent subsidies from the private MA plans by the U.S. Centers for Medicare and Medicaid Services. That means that those who are covered under the private Medicare Advantage plans need to pay more to cover the subsidy cut.
New rules for Roth IRA: New rules are being put in place for the Roth IRAs next year. The income limit for the Roth IRAs will be dropped. This will allow one to convert as much of their retirement accounts into Roth IRAs. However, one needs to pay income taxes on the fund balances while converting to Roth IRA accounts.
Suspension of mandatory retirement plan withdrawals: Retirement plans withdrawals which were compulsory have been suspended. The withdrawal decision can also put an affect on the tax returns due in the next year.