​The maximum contribution to 401(k) accounts is being raised by $500 in 2018, the first increase in three years. If you have not already done so, now is the time to plan for contributions into your retirement accounts in 2018.

​Don't forget to account for any matching programs offered by your employer as you determine your various funding levels for next year.

The Social Security Administration announced this week a 2 percent boost to monthly Social Security and Supplemental Security Income (SSI) benefits for 2018. The increase is the largest since 2012, and is based on the rise in the Consumer Price Index over the past 12 months ending in September 2017.
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For those still contributing to Social Security through wages, the potential maximum income subject to Social Security tax increases 1.2 percent this year, to $128,700.

​The Social Security and Medicare tax rates do not change from 2017 to 2018.

In 2012 my Social Security was launched to allow online access to your Social Security account. To date, over 30 million Americans have created an account. Effective June 10 there will be a second way to authenticate your identity and gain access to your online information using your e-mail account.

Background
Given the increased risk of identity theft, the Social Security Administration (SSA) recently required you provide a cell phone number in addition to your username and password to access your account. After tremendous backlash from users, the SSA rolled back this additional authentication procedure.

Current Situation
To solve this problem the new SSA login protocol adds authentication through either a one-time-use code sent to your cell phone or a one-time-use code sent to your requested e-mail.

To access my Social Security after June 10 you will first enter your username and password. You will then be required to enter your security code sent to you via cell phone or your email address.

Which method to use?
If you think the SSA is vulnerable to hack, you may wish to choose the email option since they already have your email in their system. Adding your cell phone number to your account provides yet another piece of personal information that could be stolen. Just be sure your email does not place the one-time security code in junk or spam folders.

The SSA is launching a campaign to announce this change along with recent updates to their website. Look for this correspondence, but do not lower your attention to the possibility of fraud.  Would-be crooks could use this announcement as an opportunity to send out fake messages. 

​If you collect Social Security benefits, you might have to pay federal income tax on part of those payments. These tips can help you determine if you need to do so.

• Form SSA-1099. If taxpayers received Social Security benefits in 2016, they should receive a Form SSA-1099, Social Security Benefit Statement, showing the amount of their benefits.
• Only Social Security. If Social Security was a taxpayer’s only income in 2016, their benefits may not be taxable. They also may not need to file a federal income tax return. If they get income from other sources, they may have to pay taxes on some of their benefits.
• Tax Formula. Here’s a quick way to find out if a taxpayer must pay taxes on their Social Security benefits: Add one-half of the Social Security income to all other income, including tax-exempt interest. Then compare that amount to the base amount for their filing status. If the total is more than the base amount, some of their benefits may be taxable.

The three base amounts are:

• $25,000 – if taxpayers  are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from their spouse for all of 2016
• $32,000 – if they are married filing jointly
• $0 – if they are married filing separately and lived with their spouse at any time during the year