317-398-9753
[email protected]
Your Business. Your Family. Our Priority.
A company owners’ potential for personal financial security usually depends on the success of the business. Our commitment and responsibility is to help keep your business running smoothly and to help achieve your personal financial goals. Whether you are a business or an individual, our specialized staff will provide you with assistance in all your tax, reporting, financial and business affairs.
We're proud members of:
Brammer & Yeend is an independently owned and operated member firm of CPA Connect, a companion association to CPAmerica International
Financial information and reporting should not be a diversion for business owners, instead, financial information should be accurate, available, and insightful. We leverage experience and technology to provide business owners with dynamic resources and management tools.
Our personal services are designed to help busy, successful families manage their finances and grow their wealth with confidence and peace of mind. We do this by working together with our business solutions, allowing us to partner with clients and coordinate business and personal planning in order to meet their most important goals.
We strive to provide excellent service and solutions that fit our client’s specific needs and are industry appropriate. Our experienced CPAs have worked with clients in a variety of industries and understand the intricacies of each and apply the best solution possible. Over the years we have serviced clients in industries including agribusiness, retail, construction, manufacturing, food & beverage and many more. Below are some of our industries where we have specialized experience and expertise.
After a challenging stretch, small businesses are beginning to show signs of recovery. Earnings have climbed 75% since January, a sign that things are moving in the right direction. Still, revenues haven’t yet caught up to the stronger numbers we saw in the past couple of years. This signifies that the earnings increase suggests a growing strength, but the climb is certainly still ongoing. Still, for many entrepreneurs, the recent momentum feels like a welcome shift after several years defined by turbulence. Read on as we go over the factors driving this recovery.
Tariff policies intended to support American manufacturing have created mixed outcomes. While some companies may benefit from these policies, small businesses that rely heavily on imports face higher material costs, which eat into already thin profit margins. Consumers, in turn, may be subject to inflated costs due to the increased cost of imported goods and supplies.
Yet business owners are seemingly adapting by renegotiating supply contracts to counterbalance price increases, making changes to product lines, or tightening operations to protect profit margins. These strategies show that small businesses are finding ways to navigate a current policy environment that’s changing rapidly.
The recently enacted One Big Beautiful Bill brings welcome certainty for business owners by locking in the tax reductions originally implemented in the 2017 Tax Cuts and Jobs Act (TCJA). For years, the possibility that these benefits might expire made long-term planning risky. Now, owners can think beyond the short term and move forward with long-term planning.
The bill also slashes the tedious amounts of business paperwork and reporting requirements. While the effect may not be felt immediately, fewer administrative hurdles free up valuable time that can be redirected toward growth, strategy, and customer retention.
Another development on the horizon is the potential for lower interest rates. If the Federal Reserve moves ahead with a rate cut, borrowing will become less expensive for small businesses, potentially opening the door to new opportunities. Affordable credit could make it easier to replace equipment, expand into new markets, or maintain a steady cash flow during slower periods.
When combined with the permanent tax cuts from the TCJA and the earnings gains already in motion, a rate cut could give small businesses the financial breathing room they need to build momentum as we head into 2026.
Despite the positive earnings news, supply costs, worker shortages, and shifting global markets still pose challenges for small businesses. Add to the mix renewed trade negotiations or inflation, and consumer spending could take a dive, potentially slowing the pace of progress.
Even so, the latest data highlights the adaptability of small business owners. By staying flexible, exploring different or additional income sources, and adjusting as needed, businesses continue to gear up for new growth opportunities while navigating uncertainty.
American families have long relied on 529 plans to save for their children’s college education. Now that the One Big Beautiful Bill (OBBB) has been signed into law, significant updates are set to launch. Whether you’re just starting a 529 or already have one in place, these new rules could impact your strategy.
A 529 is a tax-advantaged savings account for education that offers tax-free growth and tax-free withdrawals for qualified expenses. When the funds are used for costs like tuition, books, or housing, you don’t pay federal taxes on those withdrawals. These accounts have become so popular that by the end of 2024, American families had saved more than $525 billion in 529 plans.
Here’s a closer look at the biggest updates under the OBBB and what they mean for education savings moving forward.
The funds in a Trump account, which grow tax-deferred until the account holder reaches the age of 18, can be used for education, starting a business, or purchasing a first home. When the account holder reaches the age of 18, up to 50% of the funds can be tapped for withdrawal. After age 30, any remaining money may be withdrawn for any purpose. However, withdrawals used for non-qualified expenses before then will be taxed as regular income.
There is no change to the federal 529 contribution rules. These rules also remain unchanged:
If you’ve paid down debt, set up an emergency fund, and have retirement savings in motion, beginning a 529 plan can be the next logical step when planning for your children’s financial future. With more options across education paths, the power of tax-free growth and tax-free qualified withdrawals, and the added coordination with ABLE accounts for special-needs planning, a 529 plan remains a highly effective and flexible way to save for education.
With inflation and economic uncertainty still putting pressure on small businesses, President Trump’s One Big Beautiful Bill (OBBB) is designed to give them some much-needed relief. The bill offers bigger tax breaks, new exemptions, and investment incentives to help business owners grow, hire, and plan for a more secure future. Here’s a look at what the bill could mean for small businesses and franchises.
When the Tax Cuts and Jobs Act (TCJA) was passed in 2017, it lowered the corporate tax rate from 35% to 21%, giving large corporations a lasting break. To keep smaller, non-corporate businesses competitive, the law also created a 20% deduction on qualified business income (QBI) for pass-through entities such as sole proprietorships, partnerships, and S corporations.
However, that deduction was temporary. Under the new OBBB, that tax break becomes permanent—giving small business owners who use pass-through structures some long-term peace of mind. The bill also makes it easier to qualify, so more businesses can take advantage of the savings.
Starting in 2026, small businesses will also receive a new baseline $400 deduction on qualifying income, with yearly adjustments for inflation. It might seem small, but every bit helps. Combined with the other changes, this gives business owners a little more financial stability, making it easier to reinvest in their business, hire more people, and plan for the future with greater confidence.
The new bill makes it easier for small businesses to invest in innovation by allowing immediate tax deductions for research and development (R&D) costs. Instead of spreading these expenses out over several years—as current law requires—businesses can now fully deduct R&D spending in the same year the money is spent. This change puts more cash back into the business faster, helping companies reinvest quickly in product development and competitive growth.
The legislation also expands tax benefits for property improvements and new construction. Small manufacturers, franchise owners, and other business owners can now write off the full cost of building or upgrading their facilities in the same year the work is finished. Whether opening a new location, adding production space, or buying something like commercial kitchen equipment, owners can deduct those costs right away—helping lower your tax bill and free up cash to keep your business moving forward.
Trump campaigned on a promise to implement no-tax-on-tips and no-tax-on-overtime legislation, and the OBBB delivers. Effective through 2028, employees can deduct up to $25,000 in tips from their taxable income. Businesses are required to report these tips on Forms W-2 and 1099. The OBBB also permits workers to deduct up to $12,500 in overtime pay from their taxable income. Again, businesses are required to report qualified overtime pay on Forms W-2 and 1099.
This change could be a win for everyone—employees get to keep more of what they earn, and employers could see happier teams and better staff retention.
Under the OBBB, the cap on the state and local tax (SALT) deduction would increase from $10,000 to $40,000 for tax years 2025 through 2029, with an annual inflation adjustment of 1%. This could be a big help to small business owners who operate as pass-through entities such as LLCs, S corporations, partnerships, or sole proprietorships, especially in states with higher tax rates. For instance, a business owner with $50,000 in combined state and local tax liabilities would be able to deduct $40,000 starting in 2025, rather than being limited to just $10,000 under the previous cap.
The new legislation strengthens tax incentives that help small businesses invest in equipment, vehicles, and machinery. Under the new rules, businesses can keep writing off the full cost of things like equipment or machinery in the same year they start using them—instead of spreading the deductions out over several years. That means owners can reinvest faster in the tools, technology, and equipment they need to boost productivity and grow their business.
The bill also improves the handling of interest on business loans. The updated rules loosen restrictions on deducting interest expenses, giving small business owners more flexibility when borrowing to invest, hire, or manage seasonal demand.
The newly passed One Big Beautiful Bill (OBBB) has stirred considerable interest, especially regarding Social Security, and there has been some confusion about whether the bill eliminates taxes on Social Security. While President Trump himself has said that it does, the truth is more nuanced. Rather than abolishing these taxes outright, the legislation introduces a new tax deduction that could potentially reduce or remove the federal tax burden on Social Security income. Read on for clarification.
The $6,000 tax deduction for seniors is meant to help older Americans—especially those living on fixed or moderate incomes—pay less in federal taxes on their Social Security benefits.
If you’re 65 or older, this deduction could reduce the amount of your income the IRS taxes. It doesn’t completely remove taxes on Social Security, but it does give you a larger standard deduction, which lowers your taxable income. That means you may owe less in taxes—or nothing at all—on your benefits.
For couples where both spouses are 65 or older, the deduction is doubled to $12,000. This could be a big help for seniors who rely on Social Security, small pensions, or part-time work to make ends meet.
The IRS uses a formula called “combined income” to determine whether your Social Security is taxable. This includes your regular income, tax-free interest, and 50% of your Social Security payments. If an individual’s combined income exceeds $25,000, or $32,000 for married couples filing jointly, up to 85% of their benefits can be subject to federal income tax.
While the deduction doesn’t fully eliminate Social Security taxes, it can lower your reportable income enough to keep you under the tax threshold, helping you avoid or reduce what you owe.
By reducing taxable income, the new deduction could result in the following benefits:
Tax experts suggest that middle-income seniors, especially those who are on the cusp of having their Social Security taxed, are likely to see the biggest benefit.
To be eligible for the $6,000 senior tax deduction, individuals must meet specific qualifications. First, you must be at least 65 years old by the close of the tax year. Additionally, eligible filers must file as single, head of household, or married filing jointly.
Another important rule is that your income must be high enough for your Social Security benefits to normally be taxed. The purpose of this deduction is to help lower or even eliminate those taxes for people in that income range.
Keep in mind, this is a federal deduction only—it does not influence how Social Security benefits are taxed at the state level. Some states continue to tax Social Security independently. However, in states like Indiana, benefits remain untaxed at the state level.
The new deduction takes effect for tax year 2025 and will remain available through 2028. However, like most legislation, it could be extended or amended in the coming years.
Middle-income seniors are expected to benefit the most from this tax break. By lowering taxable income, the new deduction could increase the number of retirees who don’t need to pay taxes on their Social Security benefits—from about 64% to nearly 88%. However, the deduction begins to phase out for individuals earning more than $75,000, or $150,000 for couples filing jointly. It does not apply to low-income seniors who already pay no Social Security taxes, or to higher earners who exceed the income limits.
Americans rely on Social Security as a key source of income in retirement, but a notable change begins this year: the full retirement age (FRA)—the age at which you can claim 100% of your Social Security benefits—has risen to 67 for those born in 1960 or later.
This change marks a milestone in the gradual phase-in of higher retirement ages, which began with the 1983 amendments to the Social Security Act. For individuals planning to retire in the coming years, understanding the implications of this update is crucial.
As of 2025, anyone born in 1960 will need to wait until age 67 to claim their full Social Security retirement benefits (previous generations qualified for full retirement benefits at age 65 or 66). While the early retirement age of 62 remains unchanged, claiming benefits before your FRA will result in permanently reduced monthly payments—by as much as 30% if you start at 62.
More Americans are living longer and relying on Social Security for a larger chunk of their income in retirement. This change could have significant implications, including:
Whether you’re nearing retirement age or planning decades ahead, there are a few key points to keep in mind:
The shift in retirement age reflects long-standing efforts to stabilize Social Security’s finances. Americans are living longer, and the retiree population is growing at a faster rate than the working-age population, so the system is facing increasing strain. Raising the full retirement age is one way policymakers have tried to extend the program’s stability without cutting benefits outright.
A 401(k) fund tends to be a passive piece of an employee’s retirement plan—automatic contributions, company match, and occasional check-ins. But if you haven’t reviewed your plan recently, you might be missing out on some newer features that can significantly enhance your long-term savings. Below are some lesser-known 401(k) perks worth exploring.
If you’re in the position of playing catch-up with your retirement fund, there’s good news. Thanks to a provision in the SECURE Act 2.0, workers aged 60 to 63 can contribute an additional $11,250 to their 401(k) annually, in addition to the standard catch-up limit for those over 50. This window offers a valuable opportunity to boost savings during the final stretch of your career, especially if you started saving late or had gaps in contributions.
Early withdrawals should always be a last resort, but accessing your 401(k) in an emergency is now easier, thanks to the SECURE Act 2.0. The updated rules allow participants to self-certify their hardship without employer approval, cutting down on paperwork and making it simpler to withdraw funds when facing serious financial need, such as medical expenses, natural disasters, or other personal emergencies.
Some 401(k) plans now offer self-directed brokerage accounts (SDBAs), allowing participants to choose from a wider variety of investment options. These accounts also give participants access to financial advisors for personalized investment strategies.
Adviser services typically involve a fee, but they can offer valuable insights, especially for savers seeking to diversify beyond standard investment options.
To help more people start saving earlier, the SECURE Act 2.0 mandates automatic enrollment in new 401(k) plans established after December 29, 2022. Beginning in 2025, eligible employees will be automatically enrolled at a default contribution rate—typically 3% of salary—with annual increases of 1% and capped at a maximum of 10% unless they opt out. This feature is especially helpful for younger workers or those new to the workforce. Even small, early contributions can grow substantially over time with compound interest.
Most 401(k) providers now offer free digital tools, like online dashboards and goal-setting features, that allow you to estimate future savings, explore different contribution scenarios, and evaluate your portfolio performance. These tools make it easier to approach retirement saving more strategically and make adjustments as your goals or income change.
A provision in the SECURE Act that’s gaining attention is the ability to invest in annuities within a 401(k) plan. Annuities can convert a portion of your retirement savings into a steady income stream for the rest of your life. For retirees concerned about outliving their savings, this could be a compelling option.
Although not yet widely available, more employers are exploring this option. According to a survey by LIRMA, the annuity trade association, about 40% of plan sponsors are considering adding annuities to their retirement offerings.
Keeping an open line of communication is important to us. We invite you to reach out to us either by phone, email, or this form to ask questions, request an appointment or talk about any finance-related matter that comes to your mind.
317-398-9753
8 Public Square
Shelbyville, IN, 46176
Your Business. Your Family. Our Priority.
A company owners’ potential for personal financial security usually depends on the success of the business. Our commitment and responsibility is to help keep your business running smoothly and to help achieve your personal financial goals. Whether you are a business or an individual, our specialized staff will provide you with assistance in all your tax, reporting, financial and business affairs.
We're proud members of:
Brammer & Yeend is an independently owned and operated member firm of CPA Connect, a companion association to CPAmerica International
Financial information and reporting should not be a diversion for business owners, instead, financial information should be accurate, available, and insightful. We leverage experience and technology to provide business owners with dynamic resources and management tools.
Our personal services are designed to help busy, successful families manage their finances and grow their wealth with confidence and peace of mind. We do this by working together with our business solutions, allowing us to partner with clients and coordinate business and personal planning in order to meet their most important goals.
We strive to provide excellent service and solutions that fit our client’s specific needs and are industry appropriate. Our experienced CPAs have worked with clients in a variety of industries and understand the intricacies of each and apply the best solution possible. Over the years we have serviced clients in industries including agribusiness, retail, construction, manufacturing, food & beverage and many more. Below are some of our industries where we have specialized experience and expertise.
After a challenging stretch, small businesses are beginning to show signs of recovery. Earnings have climbed 75% since January, a sign that things are moving in the right direction. Still, revenues haven’t yet caught up to the stronger numbers we saw in the past couple of years. This signifies that the earnings increase suggests a growing strength, but the climb is certainly still ongoing. Still, for many entrepreneurs, the recent momentum feels like a welcome shift after several years defined by turbulence. Read on as we go over the factors driving this recovery.
Tariff policies intended to support American manufacturing have created mixed outcomes. While some companies may benefit from these policies, small businesses that rely heavily on imports face higher material costs, which eat into already thin profit margins. Consumers, in turn, may be subject to inflated costs due to the increased cost of imported goods and supplies.
Yet business owners are seemingly adapting by renegotiating supply contracts to counterbalance price increases, making changes to product lines, or tightening operations to protect profit margins. These strategies show that small businesses are finding ways to navigate a current policy environment that’s changing rapidly.
The recently enacted One Big Beautiful Bill brings welcome certainty for business owners by locking in the tax reductions originally implemented in the 2017 Tax Cuts and Jobs Act (TCJA). For years, the possibility that these benefits might expire made long-term planning risky. Now, owners can think beyond the short term and move forward with long-term planning.
The bill also slashes the tedious amounts of business paperwork and reporting requirements. While the effect may not be felt immediately, fewer administrative hurdles free up valuable time that can be redirected toward growth, strategy, and customer retention.
Another development on the horizon is the potential for lower interest rates. If the Federal Reserve moves ahead with a rate cut, borrowing will become less expensive for small businesses, potentially opening the door to new opportunities. Affordable credit could make it easier to replace equipment, expand into new markets, or maintain a steady cash flow during slower periods.
When combined with the permanent tax cuts from the TCJA and the earnings gains already in motion, a rate cut could give small businesses the financial breathing room they need to build momentum as we head into 2026.
Despite the positive earnings news, supply costs, worker shortages, and shifting global markets still pose challenges for small businesses. Add to the mix renewed trade negotiations or inflation, and consumer spending could take a dive, potentially slowing the pace of progress.
Even so, the latest data highlights the adaptability of small business owners. By staying flexible, exploring different or additional income sources, and adjusting as needed, businesses continue to gear up for new growth opportunities while navigating uncertainty.
American families have long relied on 529 plans to save for their children’s college education. Now that the One Big Beautiful Bill (OBBB) has been signed into law, significant updates are set to launch. Whether you’re just starting a 529 or already have one in place, these new rules could impact your strategy.
A 529 is a tax-advantaged savings account for education that offers tax-free growth and tax-free withdrawals for qualified expenses. When the funds are used for costs like tuition, books, or housing, you don’t pay federal taxes on those withdrawals. These accounts have become so popular that by the end of 2024, American families had saved more than $525 billion in 529 plans.
Here’s a closer look at the biggest updates under the OBBB and what they mean for education savings moving forward.
The funds in a Trump account, which grow tax-deferred until the account holder reaches the age of 18, can be used for education, starting a business, or purchasing a first home. When the account holder reaches the age of 18, up to 50% of the funds can be tapped for withdrawal. After age 30, any remaining money may be withdrawn for any purpose. However, withdrawals used for non-qualified expenses before then will be taxed as regular income.
There is no change to the federal 529 contribution rules. These rules also remain unchanged:
If you’ve paid down debt, set up an emergency fund, and have retirement savings in motion, beginning a 529 plan can be the next logical step when planning for your children’s financial future. With more options across education paths, the power of tax-free growth and tax-free qualified withdrawals, and the added coordination with ABLE accounts for special-needs planning, a 529 plan remains a highly effective and flexible way to save for education.
With inflation and economic uncertainty still putting pressure on small businesses, President Trump’s One Big Beautiful Bill (OBBB) is designed to give them some much-needed relief. The bill offers bigger tax breaks, new exemptions, and investment incentives to help business owners grow, hire, and plan for a more secure future. Here’s a look at what the bill could mean for small businesses and franchises.
When the Tax Cuts and Jobs Act (TCJA) was passed in 2017, it lowered the corporate tax rate from 35% to 21%, giving large corporations a lasting break. To keep smaller, non-corporate businesses competitive, the law also created a 20% deduction on qualified business income (QBI) for pass-through entities such as sole proprietorships, partnerships, and S corporations.
However, that deduction was temporary. Under the new OBBB, that tax break becomes permanent—giving small business owners who use pass-through structures some long-term peace of mind. The bill also makes it easier to qualify, so more businesses can take advantage of the savings.
Starting in 2026, small businesses will also receive a new baseline $400 deduction on qualifying income, with yearly adjustments for inflation. It might seem small, but every bit helps. Combined with the other changes, this gives business owners a little more financial stability, making it easier to reinvest in their business, hire more people, and plan for the future with greater confidence.
The new bill makes it easier for small businesses to invest in innovation by allowing immediate tax deductions for research and development (R&D) costs. Instead of spreading these expenses out over several years—as current law requires—businesses can now fully deduct R&D spending in the same year the money is spent. This change puts more cash back into the business faster, helping companies reinvest quickly in product development and competitive growth.
The legislation also expands tax benefits for property improvements and new construction. Small manufacturers, franchise owners, and other business owners can now write off the full cost of building or upgrading their facilities in the same year the work is finished. Whether opening a new location, adding production space, or buying something like commercial kitchen equipment, owners can deduct those costs right away—helping lower your tax bill and free up cash to keep your business moving forward.
Trump campaigned on a promise to implement no-tax-on-tips and no-tax-on-overtime legislation, and the OBBB delivers. Effective through 2028, employees can deduct up to $25,000 in tips from their taxable income. Businesses are required to report these tips on Forms W-2 and 1099. The OBBB also permits workers to deduct up to $12,500 in overtime pay from their taxable income. Again, businesses are required to report qualified overtime pay on Forms W-2 and 1099.
This change could be a win for everyone—employees get to keep more of what they earn, and employers could see happier teams and better staff retention.
Under the OBBB, the cap on the state and local tax (SALT) deduction would increase from $10,000 to $40,000 for tax years 2025 through 2029, with an annual inflation adjustment of 1%. This could be a big help to small business owners who operate as pass-through entities such as LLCs, S corporations, partnerships, or sole proprietorships, especially in states with higher tax rates. For instance, a business owner with $50,000 in combined state and local tax liabilities would be able to deduct $40,000 starting in 2025, rather than being limited to just $10,000 under the previous cap.
The new legislation strengthens tax incentives that help small businesses invest in equipment, vehicles, and machinery. Under the new rules, businesses can keep writing off the full cost of things like equipment or machinery in the same year they start using them—instead of spreading the deductions out over several years. That means owners can reinvest faster in the tools, technology, and equipment they need to boost productivity and grow their business.
The bill also improves the handling of interest on business loans. The updated rules loosen restrictions on deducting interest expenses, giving small business owners more flexibility when borrowing to invest, hire, or manage seasonal demand.
The newly passed One Big Beautiful Bill (OBBB) has stirred considerable interest, especially regarding Social Security, and there has been some confusion about whether the bill eliminates taxes on Social Security. While President Trump himself has said that it does, the truth is more nuanced. Rather than abolishing these taxes outright, the legislation introduces a new tax deduction that could potentially reduce or remove the federal tax burden on Social Security income. Read on for clarification.
The $6,000 tax deduction for seniors is meant to help older Americans—especially those living on fixed or moderate incomes—pay less in federal taxes on their Social Security benefits.
If you’re 65 or older, this deduction could reduce the amount of your income the IRS taxes. It doesn’t completely remove taxes on Social Security, but it does give you a larger standard deduction, which lowers your taxable income. That means you may owe less in taxes—or nothing at all—on your benefits.
For couples where both spouses are 65 or older, the deduction is doubled to $12,000. This could be a big help for seniors who rely on Social Security, small pensions, or part-time work to make ends meet.
The IRS uses a formula called “combined income” to determine whether your Social Security is taxable. This includes your regular income, tax-free interest, and 50% of your Social Security payments. If an individual’s combined income exceeds $25,000, or $32,000 for married couples filing jointly, up to 85% of their benefits can be subject to federal income tax.
While the deduction doesn’t fully eliminate Social Security taxes, it can lower your reportable income enough to keep you under the tax threshold, helping you avoid or reduce what you owe.
By reducing taxable income, the new deduction could result in the following benefits:
Tax experts suggest that middle-income seniors, especially those who are on the cusp of having their Social Security taxed, are likely to see the biggest benefit.
To be eligible for the $6,000 senior tax deduction, individuals must meet specific qualifications. First, you must be at least 65 years old by the close of the tax year. Additionally, eligible filers must file as single, head of household, or married filing jointly.
Another important rule is that your income must be high enough for your Social Security benefits to normally be taxed. The purpose of this deduction is to help lower or even eliminate those taxes for people in that income range.
Keep in mind, this is a federal deduction only—it does not influence how Social Security benefits are taxed at the state level. Some states continue to tax Social Security independently. However, in states like Indiana, benefits remain untaxed at the state level.
The new deduction takes effect for tax year 2025 and will remain available through 2028. However, like most legislation, it could be extended or amended in the coming years.
Middle-income seniors are expected to benefit the most from this tax break. By lowering taxable income, the new deduction could increase the number of retirees who don’t need to pay taxes on their Social Security benefits—from about 64% to nearly 88%. However, the deduction begins to phase out for individuals earning more than $75,000, or $150,000 for couples filing jointly. It does not apply to low-income seniors who already pay no Social Security taxes, or to higher earners who exceed the income limits.
Americans rely on Social Security as a key source of income in retirement, but a notable change begins this year: the full retirement age (FRA)—the age at which you can claim 100% of your Social Security benefits—has risen to 67 for those born in 1960 or later.
This change marks a milestone in the gradual phase-in of higher retirement ages, which began with the 1983 amendments to the Social Security Act. For individuals planning to retire in the coming years, understanding the implications of this update is crucial.
As of 2025, anyone born in 1960 will need to wait until age 67 to claim their full Social Security retirement benefits (previous generations qualified for full retirement benefits at age 65 or 66). While the early retirement age of 62 remains unchanged, claiming benefits before your FRA will result in permanently reduced monthly payments—by as much as 30% if you start at 62.
More Americans are living longer and relying on Social Security for a larger chunk of their income in retirement. This change could have significant implications, including:
Whether you’re nearing retirement age or planning decades ahead, there are a few key points to keep in mind:
The shift in retirement age reflects long-standing efforts to stabilize Social Security’s finances. Americans are living longer, and the retiree population is growing at a faster rate than the working-age population, so the system is facing increasing strain. Raising the full retirement age is one way policymakers have tried to extend the program’s stability without cutting benefits outright.
A 401(k) fund tends to be a passive piece of an employee’s retirement plan—automatic contributions, company match, and occasional check-ins. But if you haven’t reviewed your plan recently, you might be missing out on some newer features that can significantly enhance your long-term savings. Below are some lesser-known 401(k) perks worth exploring.
If you’re in the position of playing catch-up with your retirement fund, there’s good news. Thanks to a provision in the SECURE Act 2.0, workers aged 60 to 63 can contribute an additional $11,250 to their 401(k) annually, in addition to the standard catch-up limit for those over 50. This window offers a valuable opportunity to boost savings during the final stretch of your career, especially if you started saving late or had gaps in contributions.
Early withdrawals should always be a last resort, but accessing your 401(k) in an emergency is now easier, thanks to the SECURE Act 2.0. The updated rules allow participants to self-certify their hardship without employer approval, cutting down on paperwork and making it simpler to withdraw funds when facing serious financial need, such as medical expenses, natural disasters, or other personal emergencies.
Some 401(k) plans now offer self-directed brokerage accounts (SDBAs), allowing participants to choose from a wider variety of investment options. These accounts also give participants access to financial advisors for personalized investment strategies.
Adviser services typically involve a fee, but they can offer valuable insights, especially for savers seeking to diversify beyond standard investment options.
To help more people start saving earlier, the SECURE Act 2.0 mandates automatic enrollment in new 401(k) plans established after December 29, 2022. Beginning in 2025, eligible employees will be automatically enrolled at a default contribution rate—typically 3% of salary—with annual increases of 1% and capped at a maximum of 10% unless they opt out. This feature is especially helpful for younger workers or those new to the workforce. Even small, early contributions can grow substantially over time with compound interest.
Most 401(k) providers now offer free digital tools, like online dashboards and goal-setting features, that allow you to estimate future savings, explore different contribution scenarios, and evaluate your portfolio performance. These tools make it easier to approach retirement saving more strategically and make adjustments as your goals or income change.
A provision in the SECURE Act that’s gaining attention is the ability to invest in annuities within a 401(k) plan. Annuities can convert a portion of your retirement savings into a steady income stream for the rest of your life. For retirees concerned about outliving their savings, this could be a compelling option.
Although not yet widely available, more employers are exploring this option. According to a survey by LIRMA, the annuity trade association, about 40% of plan sponsors are considering adding annuities to their retirement offerings.
Keeping an open line of communication is important to us. We invite you to reach out to us either by phone, email, or this form to ask questions, request an appointment or talk about any finance-related matter that comes to your mind.
317-398-9753
8 Public Square
Shelbyville, IN, 46176
