One of the most anticipated moves by the Internal Revenue Service every year is the new limits on funding retirement accounts. The new contribution limits reflect cost-of-living increases over the last year.
The IRS recently announced that the contribution limits for 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan will increase to $23,000 in 2024, up from $22,500 in 2023.
The IRS also announced that contributions to IRAs will increase from $6,500 in 2023 to $7,000 in 2024. The IRA catch up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 to include an annual cost of living adjustment but remains $1,000 for 2024. Taxpayers can deduct contributions to a traditional IRA (not a Roth IRA) if they meet certain conditions. If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income.
As the leaves change colors and the air gets crisper, fall is certainly in the air. Fall is the perfect time to take a closer look at your money matters and make some smart financial moves. Here are some fall finance tips to help you stay on track.
Review your budget and expenses
Where is your money going? Do you need to adjust your budget to make room for certain things, or cut back on others? Fall can bring different spending patterns with holidays and back-to-school costs, so it’s a good idea to adjust your budget accordingly.
Plan for holiday expenses
As the year winds down, it’s a good time to think about year-end expenses. This includes holiday gifts, travel plans, and any tax-related actions you need to take. Planning ahead can help you avoid extra stress come December.
Check on your credit
Take a moment to check your credit report. Reviewing your credit for errors or discrepancies can help you maintain good credit.
Get ready for open enrollment
Fall often means open enrollment for employee benefits. Review your health insurance, retirement plan, and other benefits to ensure you’re making the most of what your employer offers.
Winterize your home
Before the winter frost sets in, take a moment to seal cracks and gaps in your home. It’s like bundling up in a warm scarf for your home. Proper insulation can help keep the cold out and keep your heating and energy bills low.
Save for emergencies
Fall storms and unexpected expenses can happen. Make sure you have an emergency fund to cover unexpected costs. If you don’t have one, consider setting up small automatic transfers to build your savings.
Prepare for tax season
It’s never too early to start preparing for tax season. Organize your financial documents, such as receipts and records of deductible expenses. It’s a good idea to check how much money is left in your FSA account if you have one, too. Consider making any year-end contributions to retirement accounts.
Declutter and sell
Everyone always emphasizes spring cleaning, but fall is also a great time to declutter your home. Consider selling items you no longer need online or through a garage sale. The extra cash can boost your savings or help you pay down debt.
The City of Worcester is currently replacing sidewalks on Park Ave directly in front of our building.
The AllCom drive-up will be closed Friday, October 7th through Monday, October 10th. The branch lobby will remain open with the exception of Monday, closed in observance of Indigenous Peoples’ Day. The branch parking lot and lobby will be accessible only via Pratt Street.
The drive-up ATM will be accessible by walk-up only. Please plan in advance for teller transactions or use remote services, if possible.
If anyone needs assistance during this time, please call us at 508.754.9980 to coordinate and we will be happy to assist.
We apologize in advance and thank you for your patience.
For the first time since 2002, the Internal Revenue Service has updated its Uniform Lifetime Table and lowered the size of RMDs. The new tables, which now project longer lifespans, are used to calculate RMDs from individual retirement accounts, 401(k)s and other retirement savings vehicles each year. This means that starting in 2022, retirees can keep more money in a tax-deferred retirement account.
What Are RMDs and How Are They Calculated?
Traditional IRAs and 401(k)s allow retirement savers to defer taxes until they withdraw money from their accounts. This allows the money to continue to grow at a faster rate over time. The IRS does, however, require you to withdraw a specific amount each year once you reach a certain age. This limits you from keeping the funds in a retirement account forever.
The following accounts are subject to RMDs: Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans, other defined contribution plans. Roth IRAs are not subject to RMDs.
To calculate your RMD, first, look up the market value of your retirement account as of Dec. 31 from the previous year. Then, divide that value by the distribution period figure that corresponds with your age on the IRS Uniform Lifetime Table. For example, a 72-year-old retiree with $500,000 in her IRA would divide $500,000 by her distribution period figure, which is 27.4. As a result, she would be required to withdraw at least $18,248 from her IRA in 2022.
Why The New RMD Formula Is Good For Retirees
The IRS has raised the average life expectancy from 82.4 to 84.6. With a higher life expectancy, retirees will likely need to spread their assets over more years. Due to the need to cover additional years, RMDs that begin in 2022 will be less than they were under the previous formula.
Since smaller withdrawals will be required each year, more of your retirement assets can remain in an IRA, 401(k) or tax-deferred account. Smaller RMDs will lessen your tax liability and could potentially drop you into a lower tax bracket – good news for retirees or those subject to RMDs.
Under the previous Uniform Lifetime Table, a 72-year-old with $500,000 in her 401(k) would have been required to withdraw $19,531 ($500,000/25.6) during her first year of taking RMDs. That’s $1,283 more that would have been subject to income taxes compared to the smaller minimum withdrawal required under the revised table.
Meanwhile, a 72-year-old with $2 million in his retirement account would have been required to withdraw $78,125 under the older formula ($2 million/25.6). However, the updated formula results in an initial RMD of just $72,992 ($2 million/27.4), meaning this retiree would keep an extra $5,133 growing tax-deferred in his retirement account.
In summary, for the first time since 2002, the IRS updated the actuarial tables that determine the amount of money a person must withdraw from their IRA or 401(k) at a certain age. The SECURE Act changed the RMD age from 70.5 to 72 and the updated Uniform Lifetime Table has lowered the size of RMDs. This allows you to keep more of your assets in a tax-deferred account. Remember, RMDs are only the minimum amount that must be withdrawn each year. You can always withdraw more from an IRA or 401(k), but keep in mind: the larger the distribution, the larger your tax bill.
If you’re someone who likes to make resolutions on New Year’s Day, you know how hard it is to stick to them. Here are a few resolutions that can help increase your financial fitness and hopefully inspire you to stay committed to them in the new year.
Resolution 1: Create a budget Saving and investing during your working years, if you are consistent, should lead to a rising net worth over time, enabling you to achieve many of life’s most important goals. Creating your own budget can help you build your road map and stay on track. At a minimum, be sure to have a high-level budget with three things: how much you’re taking in after taxes, how much you’re spending and how much you’re saving.
Resolution 2: Manage your debt Debt, depending on how you use it, isn’t always good or bad—it’s simply a tool. For most people, some level of debt is a practical necessity, especially to purchase an expensive long-term asset to pay back over time, such as a home or car. Problems may arise when debt becomes more of a burden than a tool.
Resolution 3: Prepare for the unexpected Risk is a part of life, particularly in finances. Your financial life can be affected by all sorts of surprises: an illness, job loss, disability, death, natural disasters or lawsuits. If you don’t have enough assets to protect against major risks, make a resolution to get your insurance needs covered. Insurance helps protect against unforeseen events that don’t happen often, but are expensive to manage yourself when they do.
Resolution 4: Protect your estate An estate plan may seem like something only for the wealthy. But there are simple steps everyone should take. Without proper beneficiary designations, a will and other basic steps, the fate of your assets or minor children may be decided by attorneys and tax agencies. Taxes and attorneys’ fees can quickly diminish these assets and delay their distribution when those who are entitled to them need them most.
The main office branch lobby of AllCom Credit Union is open.
Effective September 20, 2021, the City of Worcester has issued an emergency order requiring masks when indoors.
AllCom Credit Union will have extra masks available in the branch if needed.
Coronavirus Update – Information about the branch
January 10, 2022
Due to the unprecedented increase in Covid-19 cases impacting our local community, AllCom Credit Union has made the decision to close our main office branch lobby at 36 Park Avenue temporarily. Although this was a difficult decision, we know it is in the best interest of the health and safety of our employees, our members, and our community.
Effective January 10, 2022 our lobby will be closed to the public. Both lanes of the drive-up teller will still be open during normal hours.
Our staff will still be available to assist you via the telephone. In-branch visits will only be allowed by appointment and for loan and mortgage closings when necessary. Please call 888.754.9980 to schedule any in-branch assistance you may need.
AllCom is here to help you during these difficult times. If you have questions, please do not hesitate to contact us at 888.754.9980.
Please take a minute to become familiar with our remote services and contact us if you need any assistance:
Please continue to visit our website for the most up-to-date information regarding how the Coronavirus may affect AllCom’s functions and services.
We want you to know that the health and safety of our members, employees and their families is always our top priority. We will continue to take the proper precautions to ensure our member’s needs are continually met.
Please stay safe and healthy. AllCom Credit Union Staff
Branch Access Update
September 20, 2021
Effective September 20, 2021, the City of Worcester has issued an emergency order requiring masks when indoors.
AllCom Credit Union will have extra masks available in the branch if needed.
Branch Access Update
June 1, 2021
AllCom Credit Union’s lobby continues to be open.
We are committed to providing a safe environment for everyone and continue to follow CDC and state guidelines at all times.
Starting June 1st, those who are fully vaccinated are no longer required to wear masks in our lobby. We welcome you to still wear your mask if you choose. If you are not fully vaccinated, we ask that you wear a mask.
If you have any symptoms of illness, we ask that you use our digital options until you are feeling better.
Thank you for your continued cooperation.
Branch Access Update
April 19, 2021
AllCom Credit Union’s lobby is now open.
We will allow lobby access to a limited number of members to ensure compliance with governmental guidance on occupancy limits and social distancing.
IMPORTANT NOTICE Prior to entering the building, please call our main number at 508.754.9980 when you arrive. We will let you know if you are able to enter right away or if you should wait in your car until we call you back.
We are strongly encouraging members to continue to use our drive-up windows along with our electronic services to perform standard transactions. While not required, appointments are also strongly encouraged to minimize wait times for new accounts, member services or loan applications and closings.
AllCom continues to follow the appropriate health guidelines of social distancing, requiring masks be worn when entering our lobby.
If you have questions, please do not hesitate to contact us at 888.754.9980.
Branch Access Update
February 8, 2021
While the branch lobby renovations have been completed, the AllCom team will continue to prioritize the safety of our members. The branch lobby is currently open by appointment only. To make an appointment, please call 508.754.9980.
When appropriate, please use the drive thru or our electronic services for teller transactions.
Lobby access will remain limited to a small number of members to ensure compliance with governmental guidance on occupancy limits and social distancing.
Important Update on our Branch
July 8, 2020
AllCom Credit Union will reopen our branch lobby effective Monday, July 13, 2020.
We will allow lobby access to a limited number of members to ensure compliance with governmental guidance on occupancy limits and social distancing.
IMPORTANT NOTICE Prior to entering the building, please call our main number at 508.754.9980 when you arrive. We will let you know if you are able to enter right away or if you should wait in your car until we call you back.
We are strongly encouraging members to continue to use our drive-up windows along with our electronic services to perform standard transactions. While not required, appointments are also strongly encouraged to minimize wait times for new accounts, member services or loan applications and closings.
AllCom continues to follow the appropriate health guidelines of social distancing, requiring masks be worn when entering our lobby.
How we are prioritizing your safety:
The following safety precautions have been implemented:
Face masks must be worn when visiting our office in accordance with Governor Baker’s order.
Social distance floor markers and one-way enter/exit arrows have been placed in our lobbies.
Seating in lobby areas has either been removed or will have at least six feet of separation.
Hand sanitizer is available.
Plexi-glass barriers have been installed throughout our office.
Our restrooms are closed to the public until further notice.
We request that trips be limited to one person per household whenever possible.
If you have questions, please do not hesitate to contact us at 888.754.9980.
AllCom will continue to monitor the COVID-19 situation and will follow guidance from public health officials and government agencies, so we can continue to support our members and communities as safely as possible.
We are here for you.
May 12, 2020
AllCom is here to help you during these difficult times. Our team is ready to assist and help find the right solution for you.
We understand the uncertainty you may feel during this time and we are here to help. If your finances have been affected by COVID-19 and you are experiencing a financial hardship, are concerned about your financial well-being or are looking to better understand your financial options, please contact us.
Governor Baker issued an order, effective Wednesday, May 6, requiring face masks or cloth face coverings in public places. To ensure your safety, as well as the safety of others, AllCom is strictly enforcing these guidelines for any person entering the branch. Click here to learn more.
As a reminder, AllCom Credit Union will send you debit card fraud alerts via text message, telephone and Email. We will NEVER ask you to click on a link or enter your card information.
If debit card fraud is suspected, you will receive a text message and Email. You can communicate with our fraud department in real time and will be asked to respond Yes or No to confirm the legitimacy of a transaction.
Text messages will be sent between 8am and 9pm. If a transaction is declined outside of these hours, please check your email for more information.
To ensure you receive these messages, please contact us to update your information with your cell phone number.
Free Weekly Credit Reports
During these times, accessing your credit is especially important. Equifax, Experian, and TransUnion are now offering free weekly online reports through April 2021. These reports do not contain your credit score. Click here for more information.
If you have questions, please do not hesitate to contact us at 888.754.9980. If you are ever unable to reach us via the main number, please use an alternate telephone line of 508.754.5489 or email us at memberservices@allcomcu.org.
AllCom will continue to monitor the COVID-19 situation and will follow guidance from public health officials and government agencies, so we can continue to support our members and communities as safely as possible.
We are all in this together.
April 6, 2020
We understand the uncertainty you may feel during this time and we are here to help. If your finances have been affected by COVID-19 and you are experiencing a financial hardship, are concerned about your financial well-being or are looking to better understand your financial options, please contact us.
AllCom is here to help you during these difficult times. Our team is ready to assist and help find the right solution for you.
AllCom cares about your financial health and wants to ensure you don’t fall victim to a scam. Scammers are taking advantage of fears surrounding the Coronavirus. Though the reason behind their fraud is new, their tactics are familiar. Learn more about how to protect yourself.
If you have questions, please do not hesitate to contact us at 888.754.9980. If you are ever unable to reach us via the main number, please use an alternate telephone line of 508.754.5489 or email us at memberservices@allcomcu.org.
We are all in this together. We will continue to monitor the COVID-19 situation and will follow guidance from public health officials and government agencies, so we can continue to support our members and communities as safely as possible.
Coronavirus Update – Information about the branch
March 17, 2020
AllCom Credit Union has been consistently monitoring the recommendations of the CDC and local authorities. As a result, we have decided to close our main office branch lobby at 36 Park Avenue. Although this was a difficult decision, we know it is in the best interest of the health and safety of our employees, our members, and our community.
Effective March 18, 2020 our lobby will be closed to the public. The drive-up teller will still be open during normal hours.
Our staff will still be available to assist you via the telephone. In-branch visits will only be allowed by appointment and for loan and mortgage closings when necessary. Please call 888.754.9980 to schedule any in-branch assistance you may need.
AllCom is here to help you during these difficult times. If you have questions, please do not hesitate to contact us at 888.754.9980. If you are ever unable to reach us via the main number, please use an alternate telephone line of 508.754.5489 or email us at memberservices@allcomcu.org.
Please take a minute to become familiar with our remote services and contact us if you need any assistance:
Please continue to visit our website for the most up-to-date information regarding how the Coronavirus may affect AllCom’s functions and services.
We want to reassure you that all deposits are insured in full. The National Credit Union Administration (NCUA) insures up to $250,000 and the Massachusetts Credit Union Share Insurance Corporation (MSIC) fully insures the deposits in excess of the federal limit of $250,000. Click here for more information.
We want you to know that the health and safety of our members, employees and their families is always our top priority. We will continue to take the proper precautions to ensure our member’s needs are continually met.
Please stay safe and healthy. AllCom Credit Union Staff
Coronavirus Update – A Message to Our Members
March 16, 2020
At AllCom Credit Union, we care about more than your financial health. We care about your total well-being. We would like to reassure you that we are continuing to closely monitor the situation and the health, safety and service of our members and employees is always our top priority.
At this time, our operating hours have not been affected. However, we understand you might be taking more precautions and limiting your face-to-face activities outside the home. With this in mind, we wanted to remind you of functions and services available online and by phone.
Banking Remotely with AllCom Credit Union:
AllCom has all the tools you need to manage your accounts without needing to visit one of our physical branch locations.
We are available by phone (888-754-9980): Mon – Fri: 8:30 a.m. – 4:30 p.m. and Sat: 9:00 a.m. – 12:00 p.m. to answer questions, assist in basic transactions, loan applications and more.
We continue to implement the following practices and policies in our branches to prevent the spread of illness and keep our members and our employees healthy:
Hand washing – Regular and thorough hand washing is one of the best ways to prevent the spread of viruses and bacteria.
Hand sanitizers – Our locations are equipped with hand sanitizers and wipes for members to use. Be sure to wash hands or use sanitizer before and after any transactions, including physical currency exchange or payments, card usage, and ATM transactions.
Disinfect – We are thoroughly wiping down countertops, surfaces and door handles throughout the day.
Employees – Our employees may use sanitary gloves when handling transactions as a precaution.
Keep Your Distance – We ask employees and members to limit physical contact with others to prevent the spread of illness.
Stay Home – Employees who do not feel well and exhibit signs of illness are asked to stay home and recover. If you’re not feeling well, you should stay home too!
AllCom Credit Union will keep you informed as updates become available. We send our hope that you and your loved ones remain healthy and we are here to assist in any way we can.
Visit the Centers for Disease Control and Prevention – www.cdc.gov for more information and updates regarding the Coronavirus.
From cures for coronavirus to phishing emails, phony websites and unemployment fraud, scammers are taking advantage of consumers as the virus continues to impact millions of people.
The potential of misinformation and attempts at fraud during times of high-profile global events and public health threats is high. Consumers should exercise caution when reacting to information and solicitations for donations associated with the coronavirus pandemic.
How to avoid coronavirus scams:
Consumers should exercise extreme caution when responding to individual pleas for financial assistance such as those posted on social media, crowd funding websites, or in an email, even if it appears to originate from a trusted source.
Be cautious of emails or websites that claim to provide information, pictures, and videos.
Do not open unsolicited (spam) emails or click on the links or attachments in those emails – even if they say you may have been exposed to someone who tested positive for COVID-19.
Never reveal personal or financial information in an email or to an untrusted website.
Do not go to an untrusted or unfamiliar website to view the event or information regarding it.
Malicious websites often imitate a legitimate website, but the URL may use a variation in spelling or a different domain (i.e., .com vs .org).
In addition to the potential of false information scammers are using stolen Social Security numbers and other personal information to apply for and receive unemployment benefits in their victims’ names. Victims may not learn they were targeted until they apply for unemployment themselves, are notified by their employer or receive a bill from the IRS for taxes they owe on benefits they never received.
Although this scam can take many forms, a scammer typically files an unemployment claim using a stolen identity and then gets the benefits, typically on debit cards or by using a money mule.
Phishing emails and texts claiming to be from an agency that offers assistance in filing for unemployment are another form. The message might say a claim is incomplete and will demand someone provide their Social Security or credit card number before it can be finalized.
Protect yourself from these scams by avoiding:
Scam websites claiming to be able to help people file and collect unemployment benefits quickly.
Phone and text scams claiming someone’s unemployment benefits have been suspended until they respond by supplying personal information, such as debit card or bank account numbers.
Jobseeker cons in which scammers claim to be employers offering you a job in order to collect your personal information or steal money.
Consumers can report the fraud by filing a report at www.ftc.gov and by notifying the Internal Revenue Service by filing an identity theft affidavit (form 14039) at www.irs.gov.
If you knowingly collect benefits based on false or inaccurate information that you intentionally provided when you filed your claim, you are committing fraud. Unemployment Insurance fraud is punishable by law and violators could face a number of serious penalties and consequences.
The next phase of construction is about to begin! The renovation will impact your access to the Credit Union as follows:
• The lobby will be closed for 4-6 weeks beginning Monday, November 2nd. Please use the drive thru or our electronic services for all teller transactions.
• For loan closings, safe deposit box access and member service needs, please call 508.754.9980 to schedule an appointment.
We deeply apologize for the inconveniences this will cause and thank you for your patience.
AllCom Credit Union is currently undergoing a major renovation of the entire building, parking lots and drive-through.
We deeply apologize for the inconveniences this will cause.
The renovation will impact your access to the Credit Union as follows:
• The parking lots, drive-through and ATM will be closed for repaving at noon on Friday, September 25th and will remain closed until the Credit Union opens for business at 8:30 AM on Monday, September 28th (weather permitting).
• To ensure the safety of our members and employees, and to complete the renovation as quickly as possible, the lobby will also be closed for several weeks in the October/November timeframe. During this time, the drive-through will remain open and appointments can be made for loan closings and member service needs. We will communicate the dates and details as we get closer.
Please plan in advance for Teller transactions or use remote services if possible.
We apologize in advance and thank you for your patience.
Are you using a personal finance app to help manage your money? If you are, you aren’t alone.
Consumers across the country are increasingly turning to apps like Dave.com, RobinHood.com, CashApp, and countless others to monitor their spending. While these apps may provide a platform for viewing and working with multiple accounts, they also increase the risk of having financial information breached. In fact, a recent breach at Waydev affected 7.5M consumers.
If you are leveraging any of these tools, there are some important steps you can take to protect your personal information.
1. Examine the terms of service for apps you are using. • Review the app’s data retention policies and determine whether the app resells your information.
2. Find out what security features the app offers to ensure your personal information remains safe. • Look for things like two-factor authentication.
3. Always confirm the validity of the app. • Don’t provide your account numbers or any personal or financial information on the phone or online unless you initiate the conversation and you know the organization.
4. Change your passwords and security settings often and use a highly secure password for your financial accounts. • Secure passwords often contain letters, numbers, and special characters. • Avoid using the same username and password on multiple sites. • Guard your pins and passwords. Don’t store them on your phone or write them down in a location where others might be able to access them.
5. Change your credit union and other account passwords if you want to remove an app’s access to your accounts.
6. Contact us at 888-754- 9980 right away if you feel your information has been compromised!
Always use extreme care when using third party apps. The more services you sign up for and the more devices you use provides criminals additional opportunities to steal your information for their personal gain.
AllCom Credit Union has launched our new Digital Banking Platform, replacing our prior Online Banking and Mobile Banking systems. Learn more
