If you’re looking for a way to reduce your taxable income for your 2014 taxes, consider the advantages of increasing your contributions to your IRA. An IRA provides great tax advantages for long-term retirement savings (if you don’t have an IRA, here’s a quick guide to getting started).
Contributions to IRAs can be made as late as the first due date of a tax return, and can be considered retroactive to the previous tax year.
For the years 2013 and 2014, the dollar limits for IRA contributions are:
• $5,500 if you are age 49 or younger,
• $6,500 if you are age 50 or older
If you haven’t hit that IRA contribution limit and you have saved a little extra this year, make that money work for you by putting it into your IRA.
This year, according to a Gallup survey, there are more Americans who think they will have a comfortable retirement than those who think they won’t. Fifty percent reported expecting to have enough money to retire comfortably, with 45 percent who said they would not.
Confidence is highest among younger Americans. Fifty-two percent in the 18-29 age group and 51 percent in the 30-49 age group are positive about having enough money. In contrast, 48 percent of those closest to retirement, ages 50-64, say they will not have enough money.
If you want to be in that group that feels positive about retirement, do something to give yourself peace of mind. Make an extra contribution—you’ll decrease your taxable income and help ensure a comfortable and fun retirement.
Consult your tax advisor for details.
Although we like to think you read and re-read the contracts you signed and pamphlets we gave you when you signed up for a checking account at Bank of American Fork, we recognize that you probably didn’t have time to memorize it or frame it for the living room. Unless you’ve already done that, here’s a quick guide to your debit card limits and ATM access.
Debit card limits
• $300.00—Daily ATM withdrawal limit
• $3000.00—Daily total transaction limit
• 12—Daily total number of debit card transactions allowed
• These limits are set at the time the card was issued. Your limits may be different if you’ve requested limit changes in the past. You can contact Customer Service to verify or request a change to your debit card limits.
• Bank of American Fork is part of the MoneyPass® ATM network. This means that in addition to the Bank of American Fork ATMs, you can use any ATM in the MoneyPass network within the United States without being charged an ATM fee.
• Your debit card will also work at nearly every other ATM across the globe. Please note that for ATMs out of the MoneyPass network, or outside of the country, fees may be assessed by the ATM provider.
• To find ATMs in the MoneyPass network, you can visit www.moneypass.com or visit the App StoreSM on your iPhone® or Android MarketTM to download the free ATM locator app to your mobile device.
iPhone is a registered trademark of Apple Inc. App Store is a service mark of Apple Inc. Android Market is a trademark of Google Inc. MoneyPass is a federally registered service mark of Elan, Inc.
It’s easy to feel overwhelmed or discouraged when you start thinking about or reading about retirement savings. Even if you’re thinking this topic is a little heavy for what you want to focus on today, give it a chance. Opening an Individual Retirement Arrangement (or IRA) may be easier than you think. Read this short article for an overview of how to get started, with the tools to do it built right in.
First, decide which type of IRA you want to open. Here are the types Bank of American Fork offers:
• If you think you’ll be in the same tax bracket upon retirement and you want to pay taxes on the income later, consider: Traditional IRA. Allows contributions of pre-tax income. Taxes are paid upon distribution.
• If retirement isn’t in your near future but you want to save a little from each paycheck, and you anticipate an increase in your salary as you get closer to retirement, consider: Roth IRA. Allows contributions of after-tax income, if qualified. Qualified distributions of principal and interest are tax-free. After retirement, distributions are not required.
• If you’re the sole owner of your business, consider: SEP IRA. SEP stands for Simplified Employee Pension. It allows a business to make contributions toward its employees’ retirement using IRAs. These are especially popular with sole proprietors, where the business owner and the employee are the same person. SEPs allow a higher maximum contribution (25% of compensation up to $50,000) than a Traditional or ROTH IRA.
You can open your IRA by visiting one of our 14 branches or by calling 800-815-BANK.
Once you decide how much you can afford to contribute each month and set up an automatic payment (your banker can help you set that up), give yourself a few months to get used to living without that money in your pocket each month. Once it feels normal, increase your contribution.
Saving for retirement might feel overwhelming, but getting started by simply opening an IRA and setting up a contribution will put you on the right track. You’ll feel more prepared and be more prepared.
Your Bank of American Fork VISA® debit card is accepted worldwide—but we need to know your travel plans in order to help protect you. We’re happy to make a note on your account so your card will work when you’re using it out of the state or out of the country.
If you don’t notify the bank of your travel plans, you may end up with a temporarily blocked card. When we see something suspicious or out-of-the-ordinary, like transactions in another part of the country or world, and don’t know you’re traveling, we may place a block for your safety.
Here are some other tips about debit cards to keep your holiday travel as smooth as possible:
• To ensure an uninterrupted trip, let us know what your travel plans are in advance. You can do this at any time in advance of your trip and it should only take five minutes. Call us at 800-815-BANK or log into your online banking and follow instructions for making a travel note there.
• Some states and some international destinations are automatically blocked for our cardholders’ security. By providing us with your travel details, we can allow transactions during the period of time you’ll be in another place and then resume the blocks once you return to protect your card.
• Your Bank of American Fork VISA® debit card will work regardless of the currency of the transaction. However, for transactions that are processed in currencies other than the US Dollar, VISA® will assess a 2% Foreign Currency Transaction Fee.
• Some hotels, car rental agencies and airlines will place a large hold on your debit card funds that may remain in place for three to five days the transaction—usually in case of damages that you might be responsible for. Keep this in mind, in case it affects travel funds you’re counting on having in your checking account.
• Consider keeping two forms of payment with you when you travel. In case of a lost or stolen card and an emergency, you won’t be left in a lurch.
• Consider applying for a free, low fixed-rate Bank of American Fork credit card that can be used for additional security and convenience with travel and other expenses.
VISA® and the name VISA are federally registered trademarks of Visa.
Courtesy of American Bankers Association
As the holiday shopping season begins, the American Bankers Association is encouraging consumers to plan ahead to avoid excessive debt in the New Year.
“Develop a plan in advance of the holidays, and be sure to check it twice,” said Gov. Frank Keating, CEO of the American Bankers Association. “Assessing your finances and spreading out your holiday spending are terrific ways to avoid starting the New Year with debt you’ll regret.”
Below are seven holiday spending tips from ABA to help consumers have a financially happy New Year:
• Keep track of other costs. Don’t forget costs beyond gifts, like postage, gift wrap, decorations, greeting cards, food, travel and charitable contributions.
• Make a list and check it twice. Keep your gift list limited to family and close friends, noting how much you want to spend on each.
• Shop early, spend carefully. Avoid shopping while rushed or under pressure, which can lead to overspending. Make sure to comparison shop online first, or download an app that lets you compare prices before you buy anything in a store. Before you head to the cashier (or online checkout), make sure your purchase is within the budget you set.
• Avoid traps. Finding a spectacular sale on something you’ve been wanting can easily throw you off course. Stay strong and stick to your budget. And don’t apply for store credit cards you don’t need just to get a one-time discount.
• Use credit wisely. Limit the use of credit for holiday spending. If you must use credit, use only one card, preferably the one with the lowest interest rate, and leave the rest at home. Pick a date when you can pay off your holiday credit card bills, and commit to paying off the balance by that time. Be sure to check statements for unauthorized charges and report them immediately.
• Save your receipts. Not only will you need them for possible returns, you’ll need them to keep track of what you’ve spent and to compare with your credit card statement. Knowing how much you spent will help you plan for next year, too. Bank of American Fork’s online money manager can also help you keep track of how much you spend in a certain budget category, like gifts or holiday food items.
Keating noted that banks are committed to helping consumers responsibly handle credit and save for the future.
“Banks offer a wide menu of options to help you save for the holidays and other expenses,” said Keating. “Ask your banker about a customizable savings plan.”
The American Bankers Association is the voice of the nation’s $15 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $11 trillion in deposits and extend more than $8 trillion in loans.
This summer, Tracey Larson, Bank of American Fork’s resident expert on age-friendly banking, talked to Doug and Larry on Mountain Money about the reality of elder financial abuse. The hosts talk about stories they’ve heard and ask, “Who can you trust?” Tracey talks about prevention, detection and checks and balances. Listen to the short segment here, with Tracey on at about 26:23.
Today, on Veteran’s Day, we’re thinking of the many Utah seniors who are also veterans. Up to $1 million a day is stolen from Utah seniors (see here). Recently Bank of American Fork received the 2014 American Bankers Association Community Commitment Award for Protecting Older Americans, a national award with only one recipient. Bank of American Fork has a unique passion and five-part initiative designed to help support caregivers and protect seniors from fraud. Behind the initiative are employees that are passionate about helping the seniors and caregivers in the communities where they live and work.
Tracey Larson is one of those employees. Larson, a special projects manager at Bank of American Fork, is the head of the bank’s age-friendly initiative. Her passion stems from being a daughter of senior parents.
“There was a shift for me that caused me to become really passionate about supporting age-friendly banking,” said Larson. “It was when I started to hear the stories. I remember my first meeting on a committee that included hearing first-hand stories of elder and vulnerable adult abuse. I cried.”
Besides her passion for making banking and finance safe for seniors and their caregivers, Larson has the know-how and detailed eye that make it natural for her to move the initiative from words on paper to action in the community.
For example, Bank of American Fork has an age-friendly champion at each branch who receives extra training on how to spot fraud or a stressed caregiver. Although all Bank of American Fork employees are trained to look for and report suspected fraud, the training for age-friendly champions is more comprehensive and goes far beyond what regulators require.
Because of employees like Tracey Larson, Bank of American Fork is making strides in helping to prevent elder financial abuse. Because of the bank’s innovations like account tools to help protect seniors and education about how to protect loved ones, awareness of this widespread problem is growing. To move prevention beyond Bank of American Fork customers, the bank is collaborating with other organizations and financial institutions to make offerings like this nationwide.
If you are a senior who needs, or may soon need, help with your finances or a caregiver of a loved one, you are not alone. Visit blog.bankaf.com/seniors. Ask your banker about what resources are available to you.
Project Teddy Bear in its 15th year
The little boy was so traumatized by neglect and abuse that he spoke to his therapist from inside a cardboard box for two years. Inside, he clung to his trusted teddy bear—the only one he felt comfortable with enough to have inside with him. This child—and thousands of others like him—has benefitted from your donations to Bank of American Fork’s Project Teddy Bear. Each holiday season, we collect new and clean, gently used stuffed animals to give to children at family support centers across Utah. Many of the children are victims of abuse, neglect, poverty or addiction. Some have been taken from their homes into state custody during the night; others have been moved from one foster home to another; yet others have experienced the violent loss of a loved one.
When these children, and perhaps all children, can hug and hold their own teddy bear, it brings comfort and a feeling of safety.
You can help. Project Teddy Bear is an opportunity for you to join with the communities in Davis, Salt Lake and Utah counties, and donate teddy bears and other stuffed animals. Starting this month, all Bank of American Fork branches will be accepting donations of new or clean and gently used stuffed animals through December 16.
Ways to lighten your load when you’re helping with a loved one’s finances.
Are you a caregiver? Are there caregivers in your circle? Help is available. Here are some of the tools available to help you manage your loved one’s finances.
Education. Having good intentions is important, but it’s hard to act in the best interests of your loved one if you don’t know how to safely and effectively manage someone else’s money. Some critical things you can do are to keep separate accounts, maintain good records and keep learning. If you have questions, consult available resources like Navigating Your Rights, your banker, a trusted financial advisor or blog.bankaf.com/seniors.
Protection. Consider view-only access instead of joint accounts. With view-only access, a helper can access a bank account to see every level of detail but cannot make a transaction. This allows a senior to maintain independence as the only legal decision-maker, but allows for an extra set of eyes to watch for scams. If your loved one decides he still wants to have a joint account, consider giving a second family member view-only access to protect the senior from fraud and the joint account holder from false accusations. The caregiver with view-only access should regularly monitor for theft. The key here is coordinating caregiving duties among families to avoid confusion about what is happening to a loved one’s money.
If you’re a caregiver, remember that you are not alone. There are people who care and resources available to lighten your load. If you have questions, ask for an age-friendly champion at any Bank of American Fork branch or at 800-815-BANK or visit blog.bankaf.com/seniors.
Pick up your free copy at any branch.
The new edition of Navigating Your Rights: The Utah Legal Guide for Those 55 and Over is available for free in any of our 14 branches. In the new edition, Jilenne Gunther covers more than 55 subjects and 200 questions, like “What documents are needed for estate and end-of-life planning?” and “How do I choose a quality, long-term care facility for a loved one?” Navigating Your Rights is the only comprehensive legal and financial resource for Utah seniors and their caregivers. Stop by any of our branches (see the back of this newsletter for a map) and pick up your free copy today (while supplies last). You can also visit www.LegalGuide55.utah.gov for the full web version.