Articles by Durva More

Technology

Trump quietly moves to slash key Social Security benefits - what are they?

Global Desk Social Security benefits are a lifeline for millions of Americans, especially seniors and people with disabilities. But now, some people who depend on these benefits might soon face one of the biggest cuts in history. There has been no big announcement or new law. Instead, the Trump Administration is trying to bring this change quietly through regulatory shifts — meaning rule changes inside government departments. This way, it doesn’t need Congress’ approval. The Trump Administration’s new proposal would change how people qualify for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). The main goal is to tighten the eligibility rules, making it tougher for people — especially older Americans — to get approved. New job data may change who gets benefitsCurrently, the Social Security Administration (SSA) uses an old list called the Dictionary of Occupational Titles to decide what kinds of jobs exist and how hard they are. The new proposal would replace it with a new database from the Bureau of Labor Statistics, called the Occupational Requirements Survey (ORS), as per the report by The Motley Fool. This part has bipartisan support, meaning both parties agree it’s time to use modern job data.ALSO READ: Melania Trump distances herself from Donald’s White House Ballroom project — ‘She’s not on board,’ source saysThe SSA will not just update the data — it will change how it interprets the information. That means they will look differently at how many jobs exist, what skills are needed, and what level of physical effort is required. These details directly affect whether someone qualifies for disability benefits. Live EventsOlder workers may find it harder to qualifyThe SSA is also planning to change how age, education, and work history affect a person’s chances of getting benefits. This could especially hurt older workers, because the new system might assume they can still adjust easily to simple or entry-level jobs.Earlier drafts of the rule say that age will no longer be seen as a serious barrier to finding work. Right now, people aged 50 and older have a better chance of qualifying because it’s assumed they can’t easily adapt to new jobs. Under the new rule, that threshold moves to 55, making it five more years harder to qualify.According to the Urban Institute, the new rules could cut SSDI eligibility by around 20% overall — and by 30% among older workers. That means hundreds of thousands of people could lose benefits. Even if eligibility falls by just 10%, about 500,000 people could lose benefits over 10 years, and another 250,000 might lose them temporarily during that time. Since SSDI recipients often qualify for Medicare or Medicaid, losing SSDI could also mean losing access to healthcare coverage, as stated by The Motley Fool. If older workers are denied SSDI, they might have no choice but to take early retirement benefits. That could cut their lifetime retirement income by around 30%.A similar proposal came up during Trump’s first term, but it was never implemented. This time, however, it seems more serious and likely. It’s still unclear if this rule will actually be finalized. But since the administration can do it through regulation, it does not need Congress, making it a real possibility. Financial experts say anyone who depends on Social Security should stay alert and plan ahead. They suggest talking to financial advisors and looking into private disability insurance or other income options in case these benefit cuts happen. FAQsQ1. What Social Security benefits is Trump planning to cut?Trump’s proposal could make it harder to qualify for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) by changing eligibility rules and job data standards.Q2. How will the new Social Security rule affect older workers?The new rule could raise the age limit from 50 to 55, making it tougher for older Americans to get disability benefits and possibly reducing their lifetime income.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onTrump Social Security cutsSocial Security benefitsSSDI eligibility changesdisability benefits ruleTrump administration regulationsolder workers Social SecuritySupplemental Security Income (SSI)Social Security newsSocial Security reformMedicare and Medicaid impact (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onTrump Social Security cutsSocial Security benefitsSSDI eligibility changesdisability benefits ruleTrump administration regulationsolder workers Social SecuritySupplemental Security Income (SSI)Social Security newsSocial Security reformMedicare and Medicaid impact(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless Explore More Stories123

Technology

90% of Americans miss this simple tax trick that can slash RMD pain — don’t be one of them

Global Desk Many retirees like to give money to charities during the holiday season, and there’s an IRS-approved way to do that while paying less tax — it’s called a Qualified Charitable Distribution. A QCD means donating money directly from your IRA (retirement account) to a charity. You don’t take the money out first, so it never counts as taxable income.Ashton Lawrence, a certified financial planner at Mariner Wealth Advisors in Greenville, South Carolina, told CNBC, “It’s one of the IRS’ best-kept secrets for retirees.” Normally, when you withdraw money from your IRA and then donate it, that money is added to your income, which can raise your tax bill. But with a QCD, the money goes straight to the charity, so it stays off your tax return completely.Simple tax trick for retireesFidelity says QCDs are good for people who are 70½ or older, already taking RMDs, and do not list itemized deductions on their taxes. They also work best for people who have large IRA savings. In 2025, the IRS lets people aged 70½ or older give up to $108,000 through a QCD. Married couples can each give $108,000.The Secure Act 2.0 now lets that $108,000 cap rise with inflation every year, so it won’t stay fixed forever. According to the IRS, about 91% of Americans take the standard deduction instead of itemizing. That means most people’s regular donations don’t lower their taxable income because they’re not claiming them as itemized deductions.A QCD solves that problem because the donation never becomes taxable income at all — “better than a deduction,” said Juan Ros, CFP and partner at Forum Financial Management in Thousand Oaks, California. Once you turn 73, you must start taking Required Minimum Distributions (RMDs) from your retirement accounts, even if you don’t need the money. If you skip it, the IRS charges a penalty.Live EventsHow to use a QCD the right wayA QCD lets you donate part or all of your RMD directly to a charity, which both fulfills the RMD rule and avoids paying taxes on that amount. “For my philanthropic clients, it’s almost a no-brainer,” said Jim Guarino, CFP and managing director at Baker Newman Noyes in Woburn, Massachusetts. To make a QCD, you must have an IRA. If your retirement savings are still in a 401(k) or another employer plan, you need to roll it over into a traditional IRA first.Most 401(k) plans allow you to transfer funds into an IRA. Once that’s done, you can ask your IRA custodian to send the donation directly to a qualified charity. It’s important that the money goes straight from your IRA to the charity — not through you — or else it could become taxable income. Timing is key. The IRS says rollovers should be completed within 60 days to avoid penalties.You cannot use QCDs for donor-advised funds or private foundations. You must make sure the charity is a qualified 501(c)(3) group before sending money. If you move your 401(k) or other savings into an IRA, you can still get all the QCD tax benefits, even if your account was not eligible before. To qualify, you must be at least 70½ years old when the money leaves your IRA, and note that SEP and SIMPLE IRAs aren’t eligible for QCDs.Always ask your IRA company to send the money straight to the charity — not to you first. Make sure the charity is a real 501(c)(3) group and save all your receipts for tax time. QCDs are not counted as income on your federal taxes, but state rules can be different. Some states follow the IRS rules, but some do not. So, it’s smart to ask your state tax office or a tax expert before donating. For retirees, a QCD is a good way to give to charity and save on taxes. It helps meet RMD rules, reduces taxable income, and supports favorite causes.FAQsQ1. What is a Qualified Charitable Distribution (QCD)?A Qualified Charitable Distribution is a tax-free donation made directly from your IRA to a charity, helping retirees lower their taxable income.Q2. Who can use a QCD to reduce taxes?Anyone aged 70½ or older with an IRA can use a QCD to donate up to $108,000 a year and reduce their Required Minimum Distribution tax impact.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onretiree tax savingsQualified Charitable DistributionQCD tax benefitIRA donationsIRS retirement ruleRequired Minimum DistributionRMD tax reductioncharitable giving for retireesSecure Act 2.0IRA charitable tax trick (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onretiree tax savingsQualified Charitable DistributionQCD tax benefitIRA donationsIRS retirement ruleRequired Minimum DistributionRMD tax reductioncharitable giving for retireesSecure Act 2.0IRA charitable tax trick(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless

Technology

This 401(k) milestone could cost you thousands in hidden fees — are you there yet?

Global Desk People love 401(k)s because they let you save money from your paycheck before taxes, and that money grows over time. Many employers even add “matching” money to help you save more. Every 401(k) plan has fees — sometimes small, but they can add up. These fees can go as high as 2%, and once your savings reach $50,000, you could end up paying $1,000 every year just in fees. Hidden 401(k) fees many people missBig plans usually charge around 0.85%, while smaller ones average 1.09% in fees, as per the report by Money Digest. These fees cover costs like plan management and investment operations. Sometimes there are extra service fees too — for example, if you take out money early. A 2024 U.S. Government Accountability Office study found that 40% of people didn’t fully understand their 401(k) fees, and 41% didn’t even know they were paying any fees at all. How to lower your 401(k) costsA report by the U.S. Department of Labor and the Employee Benefits Security Administration warned that fees can seriously cut your savings. For example, if someone starts with $25,000 and invests for 35 years at a 7% return, a 0.5% fee would grow to $227,000 — but a 1.5% fee would only grow to $163,000, which is 28% less. Check the expense ratio of your investments — this is the yearly fee charged by funds. Cheaper options like index funds or exchange-traded funds (ETFs) often cost less than actively managed funds. If you find a lower-cost option, think about whether it makes sense based on your 401(k)’s rate of return. A lower fee is good only if it doesn’t hurt your growth.Live EventsIf you have 401(k)s from past jobs, consider rolling them into one account with lower fees, such as an IRA (Individual Retirement Account). IRAs usually cost less — especially if you use Robo Advisors instead of human managers. According to the report by Money Digest., once your 401(k) hits that $50,000 milestone, the fees can quietly eat away your savings. Knowing what you’re paying and making smart switches can help you keep more money for your future. FAQsQ1. How much are 401(k) fees usually?Most 401(k) fees range from 0.5% to 2%, depending on your plan size and provider.Q2. How can I lower my 401(k) fees?You can lower fees by switching to low-cost index funds or IRAs and checking your plan’s expense ratio regularly.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onhow to save on 401(k) fees401(k) feeshidden 401(k) costslower 401(k) fees401(k) savingsretirement plan fees401(k) expense ratioreduce 401(k) chargesIRA vs 401(k)401(k) management fees (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onhow to save on 401(k) fees401(k) feeshidden 401(k) costslower 401(k) fees401(k) savingsretirement plan fees401(k) expense ratioreduce 401(k) chargesIRA vs 401(k)401(k) management fees(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless