The Columbia Press
June 10, 2022
Senior Moments
with Emma Edwards
11
Financial Focus
with Adam Miller
Cat behavior and negativity
New limits expand 401(k), IRA opportunities
If my body were a car, I’d
consider trading it in for a
newer model.
Cartoon character Maxine
warns that we shouldn’t get
all weird and blame every-
thing on getting older. “Our
age is merely the number
of years the world has been
enjoying us,” according to
Maxine, a very smart older
lady.
My goals the past few
months have been to become
more optimistic and to stay
away from pessimism and
negativity. Fortunately, I’m
not given to depression, but
the opposite of a state of op-
timism allows one to fall into
forms of depression.
Not long ago, I received a
book explaining cats and de-
coding feline body language.
Most of you know I acquired
a kitten during the pandemic.
She has since grown into an
adult cat and will be 2 years
old on Oct. 25.
I’ve learned that she really
does need me. And I think
she is realizing that she needs
me, as well. It took a while
for sure!
Holly plays well on her
own, but especially enjoys
times when we play together.
But sometimes I’m too tired
to give her one-on-one play
sessions. I’ve learned that at
times like that, I’m rewarded
with her naughtiness, which
represents her boredom (ac-
cording to my newest cat
book).
Some people say they never
get bored. So, call it restless-
ness or whatever, but we all
need to play at times.
Computer games are a par-
tial solution. That can be
good brain exercise. Good,
You could spend two, even
three, decades in retirement.
To pay for all those years,
you’ll probably need to take
full advantage of your retire-
ment accounts. And in 2022,
you may have expanded op-
portunities to deduct retire-
ment plan contributions on
your tax return.
Before looking at what’s
changed this year, let’s review
the key benefits of these ac-
counts:
• Traditional IRA – You
typically contribute pretax
(deductible) dollars to a tradi-
tional IRA, and your earnings
can grow tax-deferred.
• Roth IRA – You invest af-
ter-tax dollars in a Roth IRA,
so your contributions won’t
lower your taxable income,
but your earnings can grow
tax free, provided you’ve had
your account at least five years
and you’re at least 59½ when
you begin taking withdrawals.
• 401(k) – A 401(k) or simi-
lar plan (such as a 457(b) for
state and local government
employees or a 403(b) for
employees of public schools
or nonprofit groups) is gen-
erally funded with pretax dol-
lars and provides tax-deferred
earnings.
Some employers offer a
Roth 401(k), in which em-
ployees contribute after-tax
dollars and can take tax-free
withdrawals if they meet the
same age and length-of-own-
ership requirements as the
Roth IRA.
So, what’s different about
these plans in 2022? First,
consider the traditional IRA.
If you – and your spouse, if
you’re married – don’t have
an
employer-sponsored
401(k) or similar plan, you
but not enough!
I’ve been studying another
book, “Learned Optimism” by
Martin E.P. Seligman. And,
coincidentally, the two books
totally relate to each other.
Perhaps we learned during
the pandemic that we’ve had
to invent our own one-on-
one entertainment. Couples,
of course, had the advantage.
For instance, I know of a
couple who start a crossword
puzzle every morning and
take turns being the starter
each day. The other one takes
over midafternoon to finish
it. Fun!
The key to that book is the
word learned -- we mustn’t
get “stuck” in boredom.
The title of the book on cats
is a dead give-away, “Inside
Your Cat’s Mind.” It even in-
cludes her different meows
and their meanings.
I learned something else
about cats: when Holly turns
2, she’ll be 24 years old in
people years. After that, she’ll
add four people years to her
age each year.
Holly and I are going to be
OK and I’m glad there are so
many things to help us out
there in this big world. Wish
us luck.
And no worrying about my
car; I gave up driving two
years ago.
Death notices
Lu Baunach
Formerly of Warrenton
Lu Baunach, 85, of Rufus died
June 1 at her home.
Bruce Finucane
Warrenton
Bruce Jay Finucane, 68, of
Warrenton died May 27 in Sea-
side. Hughes-Ransom Mortuary
is handling arrangements.
can always deduct the full
amount of your contribution
on your tax return, no mat-
ter what you earn. But if one
or both of you are covered by
an employer-sponsored plan,
then your deductions could be
reduced or eliminated based
on your income.
Single taxpayers can claim
the full deduction if your
modified adjusted gross in-
come (MAGI) is $68,000 or
less ($109,000 for married fil-
ing jointly), with deductibility
decreasing at higher income
levels and phasing out entire-
ly at $78,000 ($129,000 for
married filing jointly).
But here’s the key point:
Compared to 2021, these
ranges are $2,000 higher for
single filers and $4,000 higher
for those who are married and
filing jointly – which means
that this year, you might have
more opportunities to make
deductible contributions.
And a similar type of in-
crease applies to Roth IRA
eligibility. In 2022, if you’re a
single filer, you can put in up
to $6,000 ($7,000 if you are
50 or older) in a Roth IRA if
your modified adjusted gross
income (MAGI) is less than
$129,000 – up from $125,000
in 2021.
Allowable contributions are
reduced at higher income
levels and phased out if your
MAGI is $144,000 or more,
up from $140,000 in 2021.
If you’re married and file
jointly, the respective ranges
are $204,000–$214,000, up
from $198,000–$208,000 in
2021.
Again, higher ranges may
mean more opportunities for
you. (Consult your tax adviser
to determine your eligibility
to contribute to a Roth IRA
or make deductible contribu-
tions to a traditional IRA.)
And finally, the annual con-
tribution limit for 401(k),
457(b) and 403(b) plans is
$20,500 – up $1,000 from
2021. If you’re 50 or old-
er, you can put in an extra
$6,500 this year, for a total of
$27,000.
These changes may not
seem monumental, but when
you’re saving for retirement,
any opportunities to invest
and potentially reduce taxes,
of whatever size, can be valu-
able. So, review your options
to determine how you can
help yourself move closer to
your retirement goals.
This article was written by
Edward Jones and submit-
ted by Adam Miller, financial
adviser at the Astoria office,
632A W. Marine Drive. To
reach him, call 503-325-7991.
Special columns in The Columbia Press
Every week: Senior Moments with Emma Edwards
Week 1: Mayor’s Message by Henry Balensifer
Week 2: Financial Focus with Adam Miller
Week 3: Spotlight on the City
Week 4: Here’s to Your Health from CMH