MONDAY, OCTOBER 22, 2012
PMA Insurance Services is an Independent Agency located in Chantilly, VA serving the Northern Virginia area as well as Washington, DC and Maryland. Through the internet, fax, phone or in person, we cover your insurance needs all over Virginia. If you need Auto Insurance, an Instant SR-22 or FR-44, Homeowners Insurance, or Business Insurance, we can help. We also provide insurance for Motorcycles, RVs and for your company's Business Vehicles. Give us a call at (703) 449-1327. Ask for Jon or Deedie.
FRIDAY, OCTOBER 19, 2012
Many clients I'm working with always ask about HSA individual plans. It's not for everyone. Like any health care option, health savings accounts have advantages and disadvantages. When considering a health savings account (HSA), think about your anticipated health care expenses, your financial situation and how much control you want over your health care spending. If you're generally healthy and want to save for future health care expenses, an HSA may be an attractive choice. On the other hand, if you anticipate needing expensive medical care in the next year and would find it hard to meet a high deductible, an HSA might not be your best option. If you have questions don't hesitate to contact us at (703) 449-1327.
FRIDAY, OCTOBER 19, 2012
I saw this today and wanted to pass it along so you are ready to put more away next year.
October 18, 2012 •
The Internal Revenue Service announced today that it is raising the contribution limit for employees participating in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plans to $17,500 from $17,000.
The catch-up contribution limit for employees aged 50 and over who participate in those same plans remains the same at $5,500.
The IRS is changing some of the limits for retirement plans because the cost-of-living index met the statutory thresholds that trigger their adjustment.
The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $59,000 and $69,000, up from $58,000 and $68,000 in 2012.
For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $95,000 to $115,000, up from $92,000 to $112,000.
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $178,000 and $188,000, up from $173,000 and $183,000.
The IRS also made changes to the AGI phase-out range for taxpayers contributing to a Roth IRA. For married couples filing jointly, the phase-out range increased from a range of $173,000 to $183,000 to a range of $178,000 to $188,000. For singles and heads of household, the income phase-out range is $112,000 to $127,000, up from $110,000 to $125,000 in 2012.
For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range remains $0 to $10,000.
The AGI limit for the saver’s credit for low- and moderate-income workers is $59,000 for married couples filing jointly, up from $57,500 in 2012; $44,250 for heads of household, up from $43,125; and $29,500 for married individuals filing separately and for singles, up from $28,750.
Effective Jan. 1, 2013, the limitation on the annual benefit under a defined benefit plan will increase from $200,000 to $205,000. For a participant who separated from service before Jan. 1, 2013, the limitation will be computed by multiplying the participant’s compensation limitation, as adjusted through 2012, by 1.0170.
The limitation for defined contribution plans will increase in 2013 from $50,000 to $51,000.
THURSDAY, OCTOBER 18, 2012
When a person has to file an SR22 form, insurance companies and the DMV are a part of the insurance coverage details. Most insurance companies will ask, in their list of questions, if a person is required by the state to file for an SR22. If the answer is yes, the person requesting insurance does not have to send any information to the DMV, because that insurance company will file the form on his or her behalf.
An SR22 form is proof that a person that has had a license suspended, for any reason, has the state required insurance coverage to operate an automobile. Generally, an insurance form like the SR22 is required for those who have been convicted of a drinking and driving violation, but some people have their license suspended due to medical reasons, too, and are required to have insurance with a company that will file this form via the DMV.
An SR22 form might be required for one year, or it might be required for three years. It might depend on what violation occurred or what each state has set for requirements. As with most traffic related violations, insurance rates will be higher than they were before the incident occurred. If a person already has insurance at the time of a conviction and he or she is required to file this type of form when the license is reinstated, the rates will be higher. Some insurance companies do request that a person locate a new company, but that rarely happens. It is a good idea to ask insurance agents if they have SR22 filing services. If a person has more than one OUI on his or her driving record, usually within a three year period, the rates could be a lot higher. There are some ways that a person can gain extra points back onto the driver’s license. An insurance agent can offer information about this and about discounts that are available.
An SR22 form basically means being responsible for someone and validating that the person has the proper insurance to drive his or her vehicle, as required by the state in which he or she resides in. An insurance company that works with these forms will verify that the person is covered and if the person fails to make premiums, the insurance company is responsible for reporting this to the DMV. Some people do continue to make premiums on existing insurance, especially if a vehicle is worth a lot, because the vehicle needs to be covered for life occurrences that might happen. It might be a good idea to contact the insurance company and change the policy, especially if the vehicle is not driven for a while. Otherwise, the insurance premiums will remain the same. If a vehicle is not being used at all, then that person can get lower rates.
THURSDAY, OCTOBER 18, 2012
The Medicare open enrollment period – also referred to as the Medicare annual enrollment period (AEP) – impacts Medicare Advantage and Medicare Part D drug plans. If you have one of these plans and want to change to a different plan, the Medicare AEP is the one time during the year when you can do that. So do not miss the deadline!
If you have a Medicare supplement plan you can change any time during the year.
The Medicare annual enrollment period 2013 is Oct. 15, 2012 through Dec. 7 2012. That is the sign up time for plans that start Jan. 1, 2013.
If you need clarification, give us a call at (703) 449-1327.