Here at Odyssey, giving back has never been a one-size-fits-all effort – especially during the holiday season. We believe generosity is most meaningful when it’s personal. That’s why each year we empower our team to help guide how we give.

Through this tradition, every Odyssey team member selects one or two charitable organizations they care deeply about, and we donate 1% of our total gross revenue to support those causes on their behalf. It’s our way of turning individual passions into collective impact.

The idea was originally inspired by a 2019 holiday giving column by The New York Times’ Nicholas Kristof, who wrote about how his family comes together each year to choose the organizations they support. We love the spirit of that approach and expanded it to include our entire team.

Our focus isn’t on recognition of what we’re doing. We want it to be on the remarkable organizations doing important work in our communities and beyond. By sharing the causes our team has chosen, we hope to spotlight their missions and maybe even spark new ideas for how others can approach giving in their own lives or organizations. 

Here are the organizations our team chose to support in 2025: 

George Pocock Rowing Foundation 

The George Pocock Rowing Foundation is dedicated to opening the doors of rowing to younger people, especially those from underrepresented communities Through hands-on programs and community partnerships, the foundation creates meaningful opportunities for adolescents to discover the sport, build confidence, and develop lifelong skills on and off the water. 

“A few years ago I joined my city’s community rowing program where we share a boathouse with the public high school. I’ve been able to see how important and transformative it is to some of these kids, and it’s also a huge scholarship opportunity, particularly for young women. Unfortunately rowing is an expensive and often homogenous and inaccessible sport. I chose the George Pocock Rowing Foundation as one of my charities this year because their mission is to give kids who never would have had the chance to try rowing the opportunity.” – Kirby Prigioni, Marketing Analyst

Love One International

Love One exists to transform the lives of children and families in Uganda through life-saving medical care, family preservation, and sharing the love of Jesus. 

“When someone needs emergency medical treatment in the U.S., we can pick up the phone and dial 9-1-1, go to the nearest E.R. or even hop on a video call with your doctor. But that isn’t the case all over the world. In remote areas of Uganda, medical treatment isn’t readily available like it is here. When children in these villages become critically ill because of malnourishment or infections like malaria or HIV, their parents are left feeling hopeless. This is where Love One steps in. 

As an ambassador for Love One, I’ve gotten to see the work they do and experience the passion their team has. It’s truly inspiring. No child should ever die from treatable conditions. That’s why I continue to choose this charity each year.” – Stephanie Irvin, Digital Content Manager

Save All Dogs Rescue

Save All Dogs Rescue offers a safe haven for unwanted, homeless, and abandoned dogs and cats from kill shelters that are in need of new loving forever homes. 

“Save All Dogs Rescue in Manchester, CT is my charity of choice. I started volunteering there in 2021 and have seen first-hand the sheer volume of animals that they rescue! They regularly take trips to kill shelters down south (where unaltered animals are much more common and therefore they have an unprecedented number of unwanted/abandoned animals) and transport them back to CT where they get regular vet care, proper nutrition, exercise, socialization, etc. 

Watching the animals learn to trust, feel love for the first time, and find homes that spoil them is such a moving experience. These dogs and cats offer companionship, unwavering love, entertainment, and so much more to the hundreds of families who adopt. 

In the immortal words of Bob Barker, “help control the pet population, have your pet spayed or neutered!” – Samantha Schneider, Actuarial Consultant

No Kid Hungry

No Kid Hungry works to solve problems of hunger and poverty in the United States and around the world. This year we had 3 of our team choose this organization to support. 

“I chose No Kid Hungry as my organization because I really like their approach to fighting child hunger, especially the way that they provide grants which help schools offer free meals for their students.  They also work with educators and lawmakers in order to generate the funding necessary for schools to offer breakfast so that no kid has to go through the school day hungry.” – Luke Matchett, Actuarial Consultant

“While there are so many things in life to worry about, finding the next meal for your child shouldn’t be one of them. By choosing No Kid Hungry, I am trying to help guarantee that every child receives the nourishment they need to flourish in other aspects of life.” – Caleb White, Actuarial Consultant

“No Kid Hungry is dedicated to eradicating childhood hunger. They employ various strategies to achieve this, such as supporting school breakfast programs and summer meal initiatives, advocating for legislative improvements in existing programs, and educating individuals on budget-friendly shopping techniques. 

I chose this organization because I believe the work they are doing is so important, particularly in times like these when hardship is widespread. It’s good to know that while kids can’t help their situation, efforts are being made to ensure they are fed.” – Kirby Prigioni, Marketing Analyst

Bolton Center School PTA 

The Bolton Center School PTA is a volunteer organization that enriches the school community in Bolton, Connecticut and expands opportunities for every child. Currently, the PTA is fundraising for the BCS boundless Playground which is a major upgrade to the school’s play space designed to be fully accessible and inclusive for all children. 

“When I figure out which charities to donate to, I try to go towards those where the target group gets the highest share of the funds possible. In the case of the Bolton School Boundless Playground, the charity is overseen by the town’s volunteer PTA so there is very little overhead. I also like the fact that there is a specific goal in mind, like in this case, where they plan to update the playground in a way that every child can use it. “ — Francis Fraine, Director of Operations & Actuarial Consultant

Feed My Starving Children 

Feed my Starving Children, is a long-standing nonprofit committed to ending childhood hunger both in the United States and around the world. With the help of donors and partners, the organization provides millions of children and families with nourishing food, essentials like hygiene and household items, school supplies, clean water access, and community support programs that help build brighter, more secure futures. 

“In the developing world there are still millions of children who die from preventable causes. It is estimated that half of these preventable deaths are related to hunger and malnutrition. Feed My Starving Children provides fully prepared (just add water) meals to children around the world. Using volunteers to pack the meals, they can deliver meals around the world for an average cost generally less than $0.30 per meal.” — Kurtis Thompson, Consulting Actuary

Note in the Pocket 

Note in my Pocket is a local North Carolina nonprofit that combats clothing insecurity by providing high-quality, seasonally appropriate clothing to homeless and impoverished children and families with dignity and love. 

It began as one teacher’s effort to ensure her students had warm coats and has grown into a community-wide organization serving thousands. 

“Note in the Pocket is a local organization that helps children with clothing insecurity that have been affected by poverty or homelessness. I chose this organization because it’s local to me and I believe in the work this organization does because it helps the kids feel comfortable and confident at school.” — Andrew Taggart, Consulting Actuary  

Thank You For Making This All Possible

Each year, we’re grateful for the opportunity to support organizations doing meaningful work in their communities and beyond. These contributions are only possible because of our incredible team and the trust our clients place in us. Together, we’re able to turn shared values into action and help create impact beyond our own walls. By sharing these stories, we hope to shine a light on the incredible work these organizations are doing and inspire others to learn more or get involved. 

The post The Power of 1%: Our Annual Commitment to Community appeared first on Odyssey Advisors, Inc.

Bottom Line Up Front

• The maximum 401(k) employee contribution for 2026 is $24,500, a $1,000 increase from the 2025 limit.
• Catch-up contributions for individuals aged 50+ rise to $8,000, while the enhanced catch-up for those ages 60-63 remains $11,250, unchanged from 2025.
• The annual benefit limit for defined benefit (DB) plans increases to $290,000, up $10,000 from 2025 limit.

The IRS has officially released the updated qualified retirement plan limits for 2026, giving savers and employers a clearer picture of what to expect in the year ahead. 

Starting in January, the 401(k) contribution limit will rise to $24,500, which is a $1,000 increase over the 2025 limit. For those age 50 and older, the catch-up contribution also ramps up. Individuals can put away up to $8,000 in additional savings next year. And for savers ages 60-63, the enhanced catch-up limit of $11,250 remains in place, offering even more room to boost retirement savings during peak earning years. 

*Important Note for High Earners: Under SECURE 2.0, employees who earned more than $150,000 in FICA wages from their employer in 2025 (known as “Highly Paid Individuals” or HPIs) are required to make all catch-up contributions on a Roth basis beginning in 2026. This applies to both the standard age 50+ catch-up and the enhanced catch-up for ages 60–63.

Below, you’ll find tables comparing the 2026 limits side-by-side with the current 2025 figures. These updates can spark meaningful conversations with clients, whether about maximizing savings, adjusting plan design, exploring tax-efficient combination strategies, or using stronger benefits to attract and retain talent in the year ahead.

2026 Contribution Limits for 401(k) Plans

These increases provide more room for high earners and near-retirees to contribute, making it a perfect time to discuss retirement goals and potential plan adjustments.

Non-401(k) Related Retirement Plan Limits for 2026

Deferred Compensation and Defined Benefit Plan Adjustments

With deferred compensation plan limits increasing to $24,500, this change allows participants to set aside additional income tax-free, an appealing option for executives and other high earners. Defined benefit plans also offer enhanced opportunities for future retirees to set aside more substantial savings.

Download the full white paper here: 401(K) Plan Limits & Non-401(k) Related Limits
Bonus:  2026 HSA and HDHP Limits

IRA Contribution Limits for 2026

Traditional and Roth IRA contribution limits will rise to $7,500 for the coming year, up from $7,000 in 2025. The catch-up contribution for IRAs remains steady at $1,000. 

For a detailed breakdown of these and other retirement-related limits for 2026, you can check out the full IRS release in Notice 2025-67.

Advisors, if you’re interested in a more in-depth retirement plan comparison chart or a free retirement plan review, you can reach one of our consultants here. 

Whenever you’re ready, here are three ways we can help: 

1. Plan Design Review: Business owners, get a free review of your current retirement plan design here. 
2. Tax Optimization: Discover tax-saving strategies that support employee retention and future planning here.
3. Advisors’ Resource: Provide your clients with effective retirement plan options that can help them defer income and secure their employees’ futures here.

The post 2026 Retirement Plan Limits: What’s Changing for 401(k), IRA & Pension Plans appeared first on Odyssey Advisors, Inc.

At Odyssey Advisors, we believe everyone has a unique way of giving back, especially during the holiday season. For us, it’s about empowering our team to make a difference. Each year, we invite each team member to choose a charity – or two – they’re passionate about, and we donate 1% of our total gross revenue to those causes on their behalf.

This tradition was inspired by a 2019 holiday giving column by Nicholas Kristof in The New York Times. Kristof shared how his family collaborates each year to select the charities they support. At Odyssey, we’ve adapted the idea to include our entire team, giving them the freedom to direct our giving in ways that reflect their values.

Our goal isn’t to spotlight ourselves but to celebrate the incredible organizations that our team supports. By sharing their choices, we hope to shine a light on these causes and perhaps inspire others to explore new ways of incorporating philanthropy into their lives or businesses. 

Here are the amazing organizations our team chose to support this year: 

George Pocock Rowing Foundation

The George Pocock Rowing Foundation is dedicated to introducing adolescents – particularly those from underrepresented populations – to the sport of rowing. Through various initiatives, the foundation provides opportunities for young people to learn about and experience rowing. 

“A few years ago I joined my city’s community rowing program where we share a boathouse with the public high school. I’ve been able to see how important and transformative it is to some of these kids, and it’s also a huge scholarship opportunity, particularly for young women. Unfortunately, rowing is an expensive and often homogenous and inaccessible sport. I chose the George Pocock Rowing Foundation as one of my charities this year because their mission is to give kids who never would have had the chance to try rowing the opportunity.” – Kirby Prigioni, Marketing Analyst

Alzheimer’s Association

The Alzheimer’s Association seeks to end Alzheimer’s and all other dementia – by accelerating global research, driving risk reduction and early detection, and maximizing quality care and support. 

“I chose the Alzheimer’s Association because my great-grandfather had Alzheimer’s. It’s a horrible disease that I believe can be cured in the near future with the right funding and awareness.” – Andrew Taggart, Consulting Actuary

Love One International

Love One exists to transform the lives of children and families in Uganda through life-saving medical care, family preservation, and sharing the love of Jesus. 

“When someone needs emergency medical treatment in the U.S., we can pick up the phone and dial 9-1-1, go to the nearest E.R., or even hop on a video call with your doctor. But that isn’t the case all over the world. In remote areas of Uganda, medical treatment isn’t readily available like it is here. When children in these villages become critically ill because of malnourishment or infections like malaria or HIV, their parents are left feeling hopeless. This is where Love One steps in. 

As a previous ambassador for Love One, I’ve gotten to see the work they do and experience the passion their team has. It’s truly inspiring. No child should ever die from treatable conditions. That’s why I continue to choose this charity each year” – Stephanie Irvin, Digital Content Manager

Save All Dogs Rescue

Save All Dogs Rescue offers a safe haven for unwanted, homeless, and abandoned dogs and cats from kill shelters that are in need of new loving forever homes. 

“Save All Dogs Rescue in Manchester, CT is my charity of choice. I started volunteering there in 2021 and have seen first-hand the sheer volume of animals that they rescue! They regularly take trips to kill shelters down south (where unaltered animals are much more common and therefore they have an unprecedented number of unwanted/abandoned animals) and transport them back to CT where they get regular vet care, proper nutrition, exercise, socialization, etc. 

Watching the animals learn to trust, feel love for the first time, and find homes that spoil them is such a moving experience. These dogs and cats offer companionship, unwavering love, entertainment, and so much more to the hundreds of families who adopt. 

In the immortal words of Bob Barker, “help control the pet population, have your pet spayed or neutered!” – Samantha Schneider, Actuarial Consultant

Mission of deeds

Mission of Deeds is a volunteer-supported nonprofit that provides furniture, kitchen items, and basic household goods, to those leaving homelessness and others in need throughout Massachussetts. 

“Mission of Deeds is a great organization based out of Massachusetts, where I’m from that helps provide household items to impoverished families.” – Caleb White, Actuarial Consultant

People First

People 1st is a non-profit corporation providing a community that supports men who have demonstrated a substantial commitment to their own sobriety by having completed an extended rehab program. This community provides ongoing support and encouragement to stay sober around three major themes; renew, restore and rebuild.

“I choose People 1st because they help people recovering from alcohol and drug addiction as they take the step back into ordinary life after an intensive rehab program. They focus on creating work environments that support recovery and help people to rediscover a sense of meaning in work, recovery, and life.” – Kurtis Thompson, Consulting Actuary 

No Kid Hungry

No Kid Hungry works to solve problems of hunger and poverty in the United States and around the world. This year we had 3 of our team choose this organization to support. 

“I chose No Kid Hungry as my organization because I really like their approach to fighting child hunger, especially the way that they provide grants which help schools offer free meals for their students.  They also work with educators and lawmakers in order to generate the funding necessary for schools to offer breakfast so that no kid has to go through the school day hungry.” – Luke Matchett, Actuarial Consultant

“While there are so many things in life to worry about, finding the next meal for your child shouldn’t be one of them. By choosing No Kid Hungry, I am trying to help guarantee that every child receives the nourishment they need to flourish in other aspects of life.” – Caleb White, Actuarial Consultant

“No Kid Hungry is dedicated to eradicating childhood hunger. They employ various strategies to achieve this, such as supporting school breakfast programs and summer meal initiatives, advocating for legislative improvements in existing programs, and educating individuals on budget-friendly shopping techniques. 

I chose this organization because I believe the work they are doing is so important, particularly in times like these when hardship is widespread. It’s good to know that while kids can’t help their situation, efforts are being made to ensure they are fed.” – Kirby Prigioni, Marketing Analyst

Fight for the Forgotten

Fight for the Forgotten is dedicated to defending the weak, loving the unloved, and empowering the voiceless around the world and in our own neighborhoods and schools. 

“Numerous individuals globally struggle to access essential resources such as water and food. Fight for the Forgotten is committed to constructing wells and establishing sustainable farming in the Pygmies in Congo, aiming to alleviate their poverty, suffering, and enslavement. As a modestly sized charity, it strives to dedicate maximum resources with minimal overhead costs.” – Francis Fraine, Actuarial Consultant

Thank you for making this possible

Every year, we’re humbled to support these incredible organizations, even in small ways. The gratitude we receive truly belongs to our team and our clients – without their dedication and trust, none of this would be possible. Together, we’re able to turn shared values into meaningful actions, demonstrating how collective effort can lead to real change. 

As we reflect on another season of giving, we’re reminded of the power of generosity, no matter the size. It’s a testament to what we can accomplish when we work together toward a common goal. To our team and clients: thank you for being the driving force behind these contributions. Your kindness and commitment inspire everything we do. 

The post Odyssey’s Annual Promise For 2024 appeared first on Odyssey Advisors, Inc.

Bottom Line Up Front

• The maximum 401(k) contribution in 2025 is $23,500, a $500 boost from 2024’s contribution limit.
• 401(k) catch-up contributions remain the same at $7,500. However, a new catch-up contribution for those aged 60, 61, 62, and 63 has been added, allowing up to $11,250.
• Maximum annual benefit limits for defined benefit plans will be $280,000, an increase of $5,000 from 2024.

The IRS recently released the new qualified retirement plan limits for 2025, published on November 1, 2024. 

Starting next year, 401(k) employee contributions will max out at $23,500, a $500 boost from the current 2024’s contribution limit. Plan participants over the age of 50 can continue to contribute an additional $7,500. Additionally, those aged 60-63 now have a new catch-up limit of $11,250, giving them more opportunities to save as they approach retirement. 

The tables below show key 2025 limits side-by-side with those in effect currently in 2024. As a financial advisor, these charts serve as valuable tools to initiate engaging conversations with your clients. The evolving landscape of 2025 presents new opportunities for plan redesign, tax-efficient combination plans, and strategies to strengthen employee retention and recruitment efforts in the coming year. 

2025 Contribution Limits for 401(k) Plans

These increases provide more room for high earners and near-retirees to contribute, making it a perfect time to discuss retirement goals and potential plan adjustments.

Non-401(k) Related Retirement Plan Limits for 2025

Deferred Compensation and Defined Benefit Plan Adjustments

With deferred compensation plan limits increasing to $23,500, this change allows participants to set aside additional income tax-free, an appealing option for executives and other high earners. Defined benefit plans also offer enhanced opportunities for future retirees to set aside more substantial savings.

Download the full whitepaper here: 401(K) Plan Limits & Non-401(k) Related Limits
Bonus: 2025 HSA and HDHP Limits

IRA Contribution Limits for 2025

Traditional and Roth IRA contribution limits will rise to $7,500 for the coming year, up from $7,000 in 2024. The catch-up contribution for IRAs remains steady at $1,000. 

For a detailed breakdown of these and other retirement-related limits for 2025, you can check out the full IRS release in Notice 2024-80.

Advisors, if you’re interested in a more in-depth retirement plan comparison chart or a free retirement plan review, you can reach one of our consultants here. 

Whenever you’re ready, here are three ways we can help: 

1. Plan Design Review: Business owners, get a free review of your current retirement plan design here. 
2. Tax Optimization: Discover tax-saving strategies that support employee retention and future planning here.
3. Advisors’ Resource: Provide your clients with effective retirement plan options that can help them defer income and secure their employees’ futures here.

The post 2025 401(k) and Retirement Plan Limits appeared first on Odyssey Advisors, Inc.

Every person, family and business has their unique way of contributing to charitable causes, especially during the holiday season. At Odyssey, our approach empowers each of our team members to select a charity (or charities) they would like to support. We’re committed to donating 1% of our total gross revenue. My role in this process is simple: I don’t decide where the funds go; I just have the honor of writing the checks. 

The idea was inspired by a holiday giving column Nicholas Kristoff wrote in the New York Times in 2019. Kristoff described how his family annually decides on their charity recipients together. While our approach at Odyssey varies slightly, the essence is the same – it’s about giving our hardworking team the autonomy to choose which organizations we support with our good fortune. 

The aim of sharing this isn’t to seek accolades for our actions, but rather to demonstrate a method of engaging your team in philanthropy. More than that, we hope to draw attention to these causes that resonate with our team, which might also inspire you. 

Here are the organizations our team supported this year: 

Alzheimer’s Association

The Alzheimer’s Association seeks to end Alzheimer’s and all other dementia – by accelerating global research, driving risk reduction and early detection, and maximizing quality care and support. 

“I chose the Alzheimer’s Association because my great-grandfather had Alzheimer’s. It’s a horrible disease that I believe can be cured in the near future with the right funding and awareness.” – Andrew Taggart, Consulting Actuary

Love One International

Love One exists to transform the lives of children and families in Uganda through life-saving medical care, family preservation, and sharing the love of Jesus. 

“When someone needs emergency medical treatment in the U.S., we can pick up the phone and dial 9-1-1, go to the nearest E.R. or even hop on a video call with your doctor. But that isn’t the case all over the world. In remote areas of Uganda, medical treatment isn’t readily available like it is here. When children in these villages become critically ill because of malnourishment or infections like malaria or HIV, their parents are left feeling hopeless. This is where Love One steps in. 

As an ambassador for Love One, I’ve gotten to see the work they do and experience the passion their team has. It’s truly inspiring. No child should ever die from treatable conditions.” – Stephanie Irvin, Digital Content Manager

Save All Dogs Rescue

Save All Dogs Rescue offers a safe haven for unwanted, homeless, and abandoned dogs and cats from kill shelters that are in need of new loving forever homes. 

“Save All Dogs Rescue in Manchester, CT is my charity of choice. I started volunteering there two years ago and have seen first-hand the sheer volume of animals that they rescue! They regularly take trips to kill shelters down south (where unaltered animals are much more common and therefore they have an unprecedented number of unwanted/abandoned animals) and transport them back to CT where they get regular vet care, proper nutrition, exercise, socialization, etc. 

Watching the animals learn to trust, feel love for the first time, and find homes that spoil them is such a moving experience. These dogs and cats offer companionship, unwavering love, entertainment, and so much more to the hundreds of families who adopt. 

In the immortal words of Bob Barker, ‘help control the pet population, have your pet spayed or neutered!'” – Samantha Schneider, Actuarial Consultant

People First

People 1st is a non-profit corporation providing a community that supports men who have demonstrated a substantial commitment to their own sobriety by having completed an extended rehab program. This community provides ongoing support and encouragement to stay sober around three major themes; renew, restore and rebuild.

“I choose People 1st because they help people recovering from alcohol and drug addiction as they take the step back into ordinary life after an intensive rehab program. They focus on creating work environments that support recovery and help people to rediscover a sense of meaning in work, recovery, and life.” – Kurtis Thompson, Consulting Actuary 

No Kid Hungry

No Kid Hungry works to solve problems of hunger and poverty in the United States and around the world. This year we had 3 of our team choose this organization to support. 

“I chose No Kid Hungry as my organization because I really like their approach to fighting child hunger, especially the way that they provide grants which help schools offer free meals for their students.  They also work with educators and lawmakers in order to generate the funding necessary for schools to offer breakfast so that no kid has to go through the school day hungry.” – Luke Matchett, Actuarial Consultant

“While there are so many things in life to worry about, finding the next meal for your child shouldn’t be one of them. By choosing No Kid Hungry, I am trying to help guarantee that every child receives the nourishment they need to flourish in other aspects of life.” – Caleb White, Actuarial Consultant

“No Kid Hungry is dedicated to eradicating childhood hunger. They employ various strategies to achieve this, such as supporting school breakfast programs and summer meal initiatives, advocating for legislative improvements in existing programs, and educating individuals on budget-friendly shopping techniques. 

I chose this organization because I believe the work they are doing is so important, particularly in times like these when hardship is widespread. It’s good to know that while kids can’t help their situation, efforts are being made to ensure they are fed.” – Kirby Prigioni, Marketing Analyst

Fight for the Forgotten

Fight for the Forgotten is dedicated to defending the weak, loving the unloved, and empowering the voiceless around the world and in our own neighborhoods and schools. 

“Numerous individuals globally struggle to access essential resources such as water and food. Fight for the Forgotten is committed to constructing wells and establishing sustainable farming in the Pygmies in Congo, aiming to alleviate their poverty, suffering and enslavement. As a modestly sized charity, it strives to dedicate maximum resources with minimal overhead costs.” – Francis Fraine, Actuarial Consultant

Interested in learning more? Check out our previous year’s giving.

Thank You for Another Great Year

Indeed, each year we contribute to these organizations, albeit modestly. While I receive calls of gratitude, it’s essential to recognize that the true appreciation is owed to our team and our valued clients, whose support makes these contributions feasible. It’s a collaborative effort that reflects our collective commitment to making a difference. This synergy of teamwork and client partnership not only drives our business success but also amplifies our community impact. It’s a reminder that every small act of giving, when combined, can create significant positive change. So, as we close another year of giving, we extend our heartfelt thanks to everyone involved – your generosity and spirit are the pillars of our charitable endeavors. 

The post Odyssey’s Annual Pledge: A Tradition of Giving Back appeared first on Odyssey Advisors, Inc.

Bottom Line Up Front

• Medicare Part D premiums in 2024 are increasing and will significantly impact individual Medicare beneficiaries by raising their healthcare costs, and also affect local governments that sponsor OPEB plans by increasing their financial liabilities.
• The Inflation Reduction Act, although intended to reduce long-term prescription drug costs starting in 2025, contributes to the rise in Part D premiums.
• Proactive planning and informed decision-making will be key to navigating these changes successfully.

In a significant development for the 51 million Americans relying on Medicare prescription drug coverage, the Centers for Medicare & Medicaid Services (CMS) announced in July of 2023, a projected average monthly basic premium of approximately $55.50 for Medicare Part D for 2024. They claimed a 1.8% decrease from 2023, marking a rare instance of declining healthcare costs in recent times. 

However, that isn’t the case for the upcoming year. Rather than seeing a decrease, there will be a significant increase in Medicare Part D premiums. 

Medicare Part D: An Overview

Medicare Part D is the part of Medicare that covers prescription drugs. Offered through private insurance companies, it is a critical component of healthcare for seniors. The premiums and the drugs covered vary by plan, making it essential to stay informed about the changes and how they might impact you or your employees as they get ready to retire. 

Medicare 101: Understanding the Basics

2024 Premium Increases and Its Impact

In five states with the largest populations over age 65 – California, Florida, New York, Pennsylvania, and Texas – the cost of average premiums is projected to rise dramatically. According to HealthView Services, premiums are expected to surge between 42% and 57% in 2024. 

The Inflation Reduction Act, signed into law in August of 2022, introduces significant changes to prescription drug costs under Medicare and Medicare Advantage plans. One key provision is the reduction in the maximum annual out-of-pocket spending on prescription drugs, which will be lowered to $2,000 in 2025. This change is expected to shift more responsibility for catastrophic coverage onto Part D plan providers, potentially contributing to higher premiums in the short term. 

Today, the federal government covers 80% of the costs above the maximum out-of-pocket limit for Part D drugs, while insurers cover the remaining 20%. With the new cap coming in 2025, insurers will be responsible for 60% to 80% of these costs, leading to higher premiums for beneficiaries. 

Social Security COLA and Medicare Costs

Retirees will receive a small Social Security cost-of-living adjustment (COLA) in 2024 – 3.2% compared to 8.7% in 2023. This increase may not suffice to cover the rising Medicare costs, particularly for those on high-end Part D plans. For instance, 54% of the COLA may go towards covering additional Part D premium costs. 

Pros and Cons for Medicare Users

Pros 

1. Long-Term Savings: The Inflation Reduction Act’s cap on out-of-pocket costs, starting in 2025, promises significant long-term savings for beneficiaries. 
2. Enhanced Coverage: The increased premiums could lead to improved coverage options and access to a broader range of medications. 

Cons

1. Immediate Financial Burden: The sharp increase in premiums places an immediate financial strain on retirees, especially those with fixed incomes. 
2. Reduced Social Security COLA Impact: With higher Part D premiums, the effectiveness of Social Security COLA increase is diminished, affecting retirees’ purchasing power. 

Impact on Local Government with OPEB Plans

Liabilities for OPEB plans are primarily influenced by the cost of coverage, with prescription drug expenses playing a significant role. Higher premiums in turn elevate the OPEB liabilities reported in financial statements. This results in increased annual expenses for both the organization and retirees, exerting additional pressure on other budgetary areas. 

Pros 

1. Potential for Long-term Cost Control: The cap on out-of-pocket expenses could stabilize or even reduce the long-term healthcare liability for these plans.
2. Opportunity for Plan Optimization: The changes necessitate a review of existing OPEB plans, providing an opportunity to optimize and streamline retiree healthcare benefits.
   

Cons:

1. Immediate Increase in Liabilities: The immediate spike in premiums may increase the short-term financial burden on local governments, potentially impacting their budgets and fiscal planning.
2. Administrative Challenges: Adapting to these changes requires administrative effort and may lead to complexities in managing OPEB plan provisions and communications with retirees.

In Summary

The increase in Medicare Part D premiums in 2024 presents both challenges and opportunities for individual beneficiaries and local governments. By understanding these changes, both groups can make informed decisions and adjustments to their strategies. For Medicare users, it’s about managing immediate costs while anticipating future savings. For local governments, it involves balancing short-term financial pressures with long-term fiscal responsibility. In both cases, proactive planning and informed decision-making will be key to navigating these changes successfully.

If you have any questions on this, please reach out to one of our Odyssey consultants. If you’d like to receive news like this straight to your inbox, please subscribe to our newsletter above.

The post Navigating the Changing Landscape of Medicare Part D Premiums in 2024 appeared first on Odyssey Advisors, Inc.

Bottom Line Up Front

• The maximum 401(k) contribution in 2024 is $23,000, a $500 boost from 2023’s contribution limit.
• 401(k) catch-up contributions remain the same at $7,500.
• Maximum annual benefit limits for defined benefit plans will be $275,000, an increase of $10,000 from 2023.

The IRS recently released the new qualified retirement plan limits for 2024, published on November 1, 2023. 

Starting next year, 401(k) employee contributions will max out at $23,000, a $500 boost from the current 2023 contribution limit of $22,500. Plan participants over the age of 50 years will be able to contribute an additional $7,500 next year, which remained the same as last year’s catch-up contribution limit. 

The tables below show key 2024 limits side-by-side with those in effect currently for 2023. As a financial advisor, these charts serve as valuable tools to initiate engaging conversations with your clients. The dynamic landscape of 2024 creates opportunities for plan redesign, tax-efficient combination plans, strategies for talent retention, and recruitment efforts in the year ahead.

What are the new 401(k) plan limits for 2024?

What are the 2024 limits for non-401(k) related plans?

Download the full whitepaper here: 401(K) Plan Limits & Non-401(k) Related Limits
Bonus: 2024 HSA and HDHP Limits
2024 Cash Balance Contribution Limits

2024 IRA Contribution Limit Increase

Contributions to both traditional IRAs and Roth IRAs will increase in 2024 as well to $7,000 – that’s a $500 increase from the current limit. The catch-up contribution will remain at $1,000. 

If you’d like a closer look at these and other retirement-related limits for 2024, please refer to IRS Notice 2023-75.
Advisors, if you’re interested in a more in-depth retirement plan comparison chart or a free retirement plan review, you can reach one of our consultants here.

Whenever you’re ready, here are three ways we can help: 

1. Business owners, get a free review of your current retirement plan design here. 
2. Minimize your tax burden and secure your employees’ futures here.
3. Financial advisors, help your clients defer income while providing retirement benefits for their employees here.

The post 401(k) and Retirement Plan Limits For 2024 appeared first on Odyssey Advisors, Inc.

Bottom Line Up Front

• SECURE 2.0 Act, as part of the $1.7 trillion omnibus spending bill was passed by Congress on December 23, 2022
• Once enacted into law, the SECURE 2.0 Act will extend RMDs to later ages, increase catch-up contributions, and require auto-enrollment and escalation in new plans. 
• Congress approved the new bill, but it is still awaiting signature by the President as of the published date of this article (December 27, 2022).

Almost signed, sealed & delivered: SECURE 2.0 Act as part of the $1.7 trillion spending bill was passed by Congress on December 23, 2022. 

Just in time to avoid a shutdown, Congress passed a major spending package which includes the highly anticipated SECURE 2.0 Act. This retirement savings provision will increase Americans’ retirement savings, decrease the costs associated with withdrawals, and provide greater access to employer retirement plans. 

Earlier this year in March, the House of Representatives passed the Securing a Strong Retirement Act of 2022 in a 414-5 vote. There are roughly 100 provisions in the SECURE 2.0 Act designed to boost participation in employer-sponsored retirement plans. The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 is an update of the SECURE Act of 2019.

The Original SECURE Act of 2019

The original SECURE Act included important enhancements to retirement saving rules, including: 

• Raising the age for required minimum distributions (RMDs) from 70.5 to 72. The added flexibility of delaying your RMD allows you to retire later, let your investments grow a little longer, and potentially save you on taxes by being in a lower tax bracket come RMD time. 
• Encouraging small businesses to offer retirement plans by providing them with tax credits to establish and maintain a retirement plan. 
• Eliminating the “stretch” IRA which allowed non-spouse beneficiaries to stretch out the distribution of inherited IRAs over their lifetimes. Under the SECURE Act, non-spouse beneficiaries must generally distribute the entire balance within 10 years of the original account holder’s death. 
• Allowing 529 college savings plan holders to repay up to $10,000 per year in qualified student loan debt with their funds. 
• Allowing long-time, part-time workers to participate in 401(k) plans and other defined contribution plans. 

Key Provisions of the SECURE 2.0 Act

Keep in mind the SECURE 2.0 Act is part of the larger Omnibus year-end spending bill which was passed by Congress on December 23rd, 2022. It is currently waiting to be enacted into law by President Biden as of the date of this article, but the President has stated that as soon as it reaches his desk, he intends to sign it. 

Below are a few of the provisions included and should be considered as they could impact your own retirement savings and plans: 

Auto Enrollment and Escalation in 401(k) & 403(b) Plans

Prior to the new Act, employers had the option to auto-enroll their employees into the company-sponsored retirement plan, which means that they would be automatically signed up to participate in the plan unless they notify the employer that they don’t want to participate. 

Effective for plan years beginning after December 31, 2024, under the new SECURE 2.0 Act, employers sponsoring a new 401(k) or 403(b) plan would be required to automatically enroll new employees in the plans at an initial amount of at least 3% of compensation – unless the employee opts out. The contributions will be automatically increased by 1% each year until it reaches a maximum of at least 10% and no more than 15%. 

Existing 401(k) and 403(b) plans will not be impacted by this feature. 

Further Age Increase for RMDs

Beginning January 1st, 2023, the age for RMDs will increase to 73, and then again to age 75 on January 1, 2033. 
Check out how RMDs are calculated here.

Increased Catch-Up Limits

Currently, the annual catch-up contribution limit for 2023 is $7,500. SECURE 2.0 Act further increases the contribution amount for those ages 60, 61, 62, and 63 to $10,000 per year and is subject to inflation adjustments. 

It will also raise the extra $1,000 IRA catch-up contribution for those ages 50 and older, to account for inflation.

Student Loan Repayment Matching

Effective for plans beginning after December 31, 2023, employers will be able to match student loan repayments with a contribution to the employee’s retirement plan account. This provision was intended to help employees that are repaying their student loans and can’t afford to make a contribution to their retirement plan.

Long-Term Part-Time Employee Eligibility

SECURE 2.0 also reduces the length of time a part-time employee (who works at least 500 hours per year) would have to wait to become eligible for participation from three years to two years.

Retirement Savings Lost & Found Database

The Act creates a national online searchable database that will enable employers to find “missing” plan participants, and plan participants to find their benefits if they change jobs or the company moves or merges with another company.

The Omnibus Spending Bill: What’s Next?

The $1.7 trillion year-end spending bill, which the SECURE 2.0 Act is included in, was passed and is awaiting President Biden’s signature as of the published date on this article. 

President Biden released a statement from the White House after the bill’s passing, “The bill is good for our economy, our competitiveness, and our communities… This bill will advance cutting-edge research on cancer and other diseases through my ARPA-H initiative. It will put more cops on the beat, invest in community policing, and provide the highest funding level for the Violence Against Women Act in history. It will help us meet our sacred obligation to America’s veterans and deliver the promise of the PACT Act, my bipartisan legislation to expand health care benefits to veterans. It will provide additional assistance to Ukraine, another demonstration of our bipartisan support for Ukraine after President Zelenskyy’s visit. It will help communities recovering from devastating natural disasters get back on their feet. And, it’ll strengthen worker protections for pregnant women.” 

You can read the full statement here: Statement from President Joe Biden on Passage of the Bipartisan Year-End Omnibus

If you’d like to be the first to hear about updates regarding retirement legislation, you can subscribe to our bi-weekly newsletter up above.

The post Almost Signed, Sealed & Delivered: SECURE 2.0 Act in Major Spending Bill appeared first on Odyssey Advisors, Inc.

Every individual, family, and organization has their own approach to charitable and holiday giving. Here at Odyssey, we adopted an approach several years back to give each of our team members a budget that they can direct to charitable causes that resonate with them. We give at least 1% of all gross revenues to charitable causes. I don’t get a vote – my only role is to write the actual checks.

I acknowledge that I totally “borrowed” the idea of letting our team select the charitable organizations from a Nicholas Kristoff 2019 New York Times holiday giving column where he noted that they hold a family meeting each year to discuss the recipients. While our method is slightly different, it’s really empowering the people who do the hard work throughout the year and let them decide with whom we should share our good fortune.

The purpose of this post is not to get any attention for our efforts but rather to highlight a way of getting your team involved in the process. Beyond that, and maybe more importantly, we want to shine a light on organizations that are meaningful to our team and perhaps to you as well.

Here were this year’s selections: 

Alzheimer’s Association

The Alzheimer’s Association seeks to end Alzheimer’s and all other dementia – by accelerating global research, driving risk reduction and early detection, and maximizing quality care and support. 

“I chose the Alzheimer’s Association because my great-grandfather had Alzheimer’s. It’s a horrible disease that I believe can be cured in the near future with the right funding and awareness.” – Andrew Taggart, Consulting Actuary

Feed My Starving Children

This organization is dedicated to seeing every child whole in body and spirit. FMSC works with food distribution partners that stay with communities for the long haul, empowering them to move from relief to development.

“In the developing world, there are still millions of children who die from preventable causes. It is estimated that half of these preventable deaths are related to hunger and malnutrition. Feed My Starving Children provides fully prepared (just add water) meals to children around the world. Using volunteers to pack the meals, they can deliver meals around the world for an average cost generally less than $0.30 per meal.” – Kurtis Thompson, Consulting Actuary

Fight for the Forgotten

Fight for the Forgotten is dedicated to defending the weak, loving the unloved, and empowering the voiceless around the world and in our own neighborhoods and schools. 

“For many people in the world, the basic needs of food and water are difficult to come by. Fight for the Forgotten seeks to build wells and develop sustainable agriculture for the Pygmies in the Congo to break the poverty, suffering, and slavery they currently endure. The charity is a very small organization that dedicates as much as possible without excessive overhead.” –  Francis Fraine, Actuarial Consultant

Love One International

Love One exists to transform the lives of children and families in Uganda through life-saving medical care, family preservation, and sharing the love of Jesus. 

“When someone needs emergency medical treatment in the U.S., we can pick up the phone and dial 9-1-1, go to the nearest E.R. or even hop on a video call with your doctor. But that isn’t the case all over the world. In remote areas of Uganda, medical treatment isn’t readily available like it is here. When children in these villages become critically ill because of malnourishment or infections like malaria or HIV, their parents are left feeling hopeless. This is where Love One steps in. 

As an ambassador, I’ve gotten to see the work they do and experience the passion their team has. It’s truly inspiring. No child should ever die from treatable conditions.” – Stephanie Irvin, Website Content Manager

No Kid Hungry

No Kid Hungry works to solve problems of hunger and poverty in the United States and around the world.

“I chose No Kid Hungry as my organization because I really like their approach to fighting child hunger, especially the way that they provide grants which help schools offer free meals for their students.  They also work with educators and lawmakers in order to generate the funding necessary for schools to offer breakfast so that no kid has to go through the school day hungry.” – Luke Matchett, Actuarial Consultant

“No Kid Hungry is an organization working to end childhood hunger. They do this through a number of methods: including funding school breakfasts and summer meals, working with the legislature to improve existing programs, and teaching people how to shop to make their money go further. 

I chose No Kid Hungry as my organization because I think the work they are doing is so important, especially now when so many are struggling. All the charities we chose are great and there are so many important causes, but it’s good to know that while kids can’t help their situation, they’re still being fed.” – Kirby Prigioni, Marketing Analyst

Save All Dogs Rescue

Save All Dogs Rescue offers a safe haven for unwanted, homeless, and abandoned dogs and cats from kill shelters that are in need of new loving forever homes. 

“Save All Dogs Rescue in Manchester, CT is near and dear to my heart. I started volunteering there last year and have seen first-hand all the wonderful work that is done within their walls. They regularly take trips to kill shelters down south (where unaltered animals are much more common and therefore they have many unwanted/abandoned animals) and transport them back to Connecticut where they get regular vet care, proper nutrition, exercise, socialization, etc. 

Watching the animals blossom and find loving homes is such a heartwarming experience. These dogs and cats offer companionship, love, entertainment, and so much more to the hundreds of families that adopt there, and the need to rescue more animals never stops! 

In the immortal words of Bob Barker, “help control the pet population, have your pet spayed or neutered!” – Samantha Schneider, Actuarial Consultant

Second Chance Animal Shelter

Second Chance operates Community Veterinary Hospitals in North Brookfield, Southbridge, Springfield, and Worcester providing access to the highest-quality veterinary care for all. 

“Second Chance is a shelter I’ve worked with personally for a couple of years now. They’re a great animal rescue and adoption charity.” – Caleb White, Actuarial Consultant

World Central Kitchen

WCK is first on the front lines, providing meals in response to humanitarian, climate, and community crises. 

“World Central Kitchen has been providing meals to communities after disasters around the globe for many years. At the start of the pandemic, they pivoted and began partnering with restaurants and growers in communities all over the country to not only provide millions of warm, nutritious meals to those in need but to support those affected in some of the hardest hit industries – providing working for chefs and support staff whose business has been decimated by stay-at-home orders, as well as generating revenue to help keep these small businesses afloat. WCK is so much more than just providing meals to areas affected by disasters. They also help boost the local economy and promote sustainable food systems to help communities improve their resilience against future disasters.” – Samantha Schneider

Yes, each year we help these groups in a small way. And, while they all will call and thank me, the real thanks belong to our team and our many clients without whom this wouldn’t be possible.

The post Ending the Year on a High Note with Odyssey’s Annual Pledge appeared first on Odyssey Advisors, Inc.

Bottom Line Up Front

• Many Defined Benefit pension plans offer retirees two options: a fixed monthly payment for life or one large lump sum payment.
• Each year, lump sum values are recalculated using the minimum present value segments rates provide by the IRS which means the payment may vary year to year.
• Lump sum values for 2023 will take a plunge, but there’s still time to claim your benefit in 2022 before the recalculation takes place.

If you or one of your clients is covered by a Defined Benefit pension plan that offers lump sum payments and they are eligible to retire, they may wish to consider doing so in 2022 vs waiting until 2023.

When it comes time for retirement, retirees with pensions often have two options: fixed monthly payments or one lump sum payment. A difficult aspect of this decision is that lump sum payments may vary from year to year. This makes deciding when to retire even more challenging. 

Each plan has lump sum equivalency factors, but they are subject to IRC Section 417(e)(3)(D) which defines the minimum that must be paid (many plan documents set the equivalency factors equal to the IRS minimum). So given the recent increases in interest rates, we will see lump sum values plunge in 2023.

The good news is that pension plans won’t be recalculating your benefits until 2023 so there’s still time to claim your lump sum offer for 2022. 

I thought benefits were protected and could never be reduced?

It’s important to remember that the plan’s Accrued Benefit is defined as a monthly benefit payable at the plan’s Normal Retirement Date. So, it’s correct that IRC Section 411(d)(6) does NOT allow for an Accrued Benefit to be reduced but the lump sum payment is a “form of payment” and not the accrued benefit.

What are the interest rates that the IRS sets for a minimum lump sum benefit?

The IRS publishes “segment rates” each month for benefits payable in the 1^st five years of distribution, the next 15 years and all payments thereafter (https://www.irs.gov/retirement-plans/minimum-present-value-segment-rates). Each plan defines their “Stability Period” and “Applicable Month” differently – you can find it in the plan document or Summary Plan Description.

What is the magnitude of the change?

For example, a participant with a $3,000 per month frozen Accrued Benefit payable at age 65 who is eligible to retire at age 62, the impact of a December 2022 vs January 2023 benefit commencement date is a reduction of over 23% of the lump sum payable, or approximately $123,000. Take a look at the example below:

What should I do about it?

Ultimately, the choice of when to retire or terminate employment is a personal one and the lump sum value of your retirement benefit is only one component of that decision. However, if your retirement planning is based on a lump sum payment, you should review your retirement options with your financial team and evaluate your options.

If you have additional questions or need more information, please contact me or any of our Odyssey consultants.

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