Breaking Personal Finance News: What You Need to Know
With so much happening in the world of personal finance news, it can be tough to keep track of everything. From changes in tax law to updates on retirement accounts, staying informed is crucial to making sound financial decisions. In this article, we’ll go over some of the most important news in personal finance that you need to know.
Retirement Account Changes
One major recent development in personal finance is the change in required minimum distributions (RMDs) for retirement accounts. Due to the passing of the SECURE Act, the age for RMDs has increased from 70 ½ to 72 for those who turned 70 ½ on or after January 1, 2020.
This change gives individuals more flexibility in managing their retirement accounts and can allow for more time to grow those accounts tax-free. However, it’s important to review your retirement plan and update any strategies to reflect this change.
Tax Law Updates
Another crucial aspect of personal finance is taxes. The IRS recently announced inflation-adjusted rates for the 2020 tax year, including an increase in the standard deduction. For single filers, the standard deduction has risen to $12,400, up from $12,200 in 2019. Married couples who file jointly will see an increase to $24,800, up from $24,400.
These tax law updates can directly impact how much you owe in taxes or how much you receive in a refund. Be sure to consult with a financial advisor or tax professional to optimize your tax strategy and take advantage of these changes.
Student Loan Forgiveness
With college tuition costs on the rise, student loan forgiveness is a hot topic in personal finance news. There have been recent proposals to forgive some or all student loan debt, which could have a significant impact on millions of borrowers.
While nothing has been officially passed, it’s important to keep an eye on any updates regarding student loan forgiveness and consider how this could affect your own student loan plan.
Closing Thoughts
Staying informed on personal finance news is crucial to making sound financial decisions. With recent updates to retirement accounts, tax laws, and discussions around student loan forgiveness, it’s important to stay up-to-date on all the latest news.
By working with a financial advisor or staying informed through reputable sources, you can make informed decisions about your personal finances and ensure a strong financial future.
