Schedule when the social security deferred payments will expire | article
FORT LEONARD WOOD, Missouri – As you may recall, all federal employee social security taxes – also known as Old Age, Survivors and Disability Insurance, or OASDI – have been postponed for the period from September to December 2020, according to a presidential memorandum released on August 8, 2020 .
That meant a temporary raise that we’ve been paying back since January of this year.
Depending on your salary, you may have had to repay $ 43 or up to $ 200 or more per pay period. Since the repayment plan will come to an end for most, it’s a good idea to come up with a plan for the extra money we’re all used to without being.
Here are a few suggestions:
- Start an emergency fund. Having cash on hand when emergencies arise can reduce the stress caused by the event.
- Consider paying off debts. With every dollar you pay on an interest-bearing loan, credit card, or line of credit, you decrease the number of months or years that you have been burdened with in debt.
- Increase your contributions to your savings plan. The limits have been increased for 2022, with regular contributions now capped at $ 20,500 if they are under the age of 50. For those over 50, the new limit is $ 27,000.
- Start an IRA. Perhaps now is the right time to open an individual retirement account that offers tax advantages for retirement provision.
- Start your child’s education fund. Tuition and living expenses at a state university can currently exceed $ 30,000 a year – twice as much as a private university – and those expenses keep growing every year. There are several ways to invest tax-free in your child’s future education.
If you need help making the right financial decisions for your money and your family’s financial future, turn to the experts at the Army Community Service’s Financial Readiness Program. It is free to all Defense Department soldiers, their families, and civilians. Call 573.596.2078 for details.
(Editor’s note: Fink is an accredited financial advisor and a specialist in personal financial preparedness with the Army Community Service.)