Got $102,300? If you do, and if you’re a FERS or CSRS Offset employee, that will be next year’s Social Security earnings ceiling.
That is, this is the amount out of which the 6.2% Social Security tax will be taken. It increased $4,800 over this years limit. If you are fortunate enough to make more than that amount, you’ll get the equivalent of a 6.2% raise from the time you hit the limit until the end of the year.
In other SS/Medicare related news, the Medicare trustees estimated that the Medicare Part B premium would go up to $96.40 next year, from $93.50 this year. I suppose we should be thankful that the Part B premium is indexed to regular inflation, rather than health care inflation.
John Grobe’s latest book, The Answer Book on Your Federal Employee Benefits, has just been released by LRP Publications. The book is written in an easy to understand question and answer format and covers all areas of federal benefits from the perspective of an employee at various stages of their career. Order your copy at shoplrp.com.