Category: Money

In 2010, President Obama will be paying out a $250 stimulus check to all eligible recipients of SSI which is stands for “Supplemental Security Income”.  This $250 payment is part of his ongoing efforts to stimulate the poor economy out of recession.

Who is eligible for the $250 stimulus?

Anyone who is currently receiving SSI payments will be eligible for the $250 check.  There are also some other groups who will receive this check including Social Security recipients and disabled veterans.

[Update – Jan 4 – Will there be another stimulus check in 2010?]

[update – find out about the new $250 stimulus check in 2010 for Social Security recipients]

Update –Will there be a stimulus check in 2010?]

When will the $250 checks be paid out?

It is not known at this time when the payments will be made but it is likely that they will be paid in the first quarter of 2010 (ie before the end of March).

Is there any income limit for the $250 payment?

No, it doesn’t matter if you have other income or if you are working or not.  It doesn’t matter how much income you make – you will still get the check.

How much will this cost the government?

According to White house officials, the cost of all the stimulus checks will be $13 billion.  A large amount of money but don’t forget that the stimulus package for 2009 was almost $800 billion.

Why is the government doing this?

The government is giving out this money in order to try to stimulate the economy.  Because of problems in the financial markets and housing markets over the last 2 years, there has been a slowdown in economic activity in America and many job losses.  By putting extra money into the economy it is hoped that the decline of the economy can be slowed down or even reversed.

Will it be a check or electronic payment?

The $250 should be given to you in the same format you currently receive your regular Social Security payment.  If you get your SS payment by check then the $250 will also be by check.  If you get your SS payment deposited in to your bank account then the $250 will also be deposited into your bank account.

Social Security Stimulus Check 2010 – FAQ

$250 stimulus check – will it be enough?

Will there be a $250 stimulus check in 2011 for Social Security Recipients?

Will there be a $250 stimulus check in 2011 for SSI Recipients?

2011 Social Security No Cost of living adjustment

This article covers all the contribution limits and rules for Roth IRA accounts as well as Traditional IRA accounts.  If you plan to contribute to your IRA accounts then it is important to know how much you can contribute.

Here are the limits for 2009 and previous years:
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The over 50 rule applies to anyone who turns 50 (or older) during the year.  The idea of this rule is to allow older people to “catch up” on their contributions if necessary.

Roth IRA income phase out ranges

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Traditional IRA income phase out ranges

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Some IRA rules

If you are over the income ceiling for the traditional Ira then you can still contribute, but you won’t get the tax deduction.

Any IRA contribution room has to be used by Apr 15 of the following year or the contribution room is lost.

The basic difference between a traditional IRA and a Roth IRA is that the Roth IRA does not get a tax deduction on contributions whereas the traditional IRA does.  Withdrawals from the ROTH IRA will be tax free whereas withdrawals from the traditional IRA are considered as income.

Don’t forget the Roth limit applies to all Roth accounts regardless of the name.  You can’t contribute $5k to your Roth IRA as another $5k to your traditional Roth.  The total of all contributions can’t exceed $5k.

Keep in mind that you can make a previous year contribution up until Apr 15 of the following year so if you make a contribution from Jan 1 – Apr 15 you have to designate if that contribution is for that year or the previous year.  Any contributions made after Apr 15 will be automatically be considered for that year only.

How do you calculate the IRA income phase?

The way the income phase out works is that if your income is less than the floor then there is no phase out – if you make the ceiling or higher then your contribution room is completely phased out.  If your income (modified adjusted gross income) is in between the floor and the ceiling then use the following equation to figure out your contribution limit.

(ceiling – your income) / (ceiling – floor)  * limit

Where “ceiling” is the top of the phase out range and “floor” refers to the bottom of the phase out range.

So for example if you are single then in 2009 your contribution limit is $5,000.
The phase out floor is $105,000 and the phase out ceiling is $121,000
If you made $105,000 or less then your contribution limit is $5,000
If you made $121,000 or more then your contribution limit is zero.

If you made between $105k and $121k then use the formula.  Let’s say someone made $110k.

The formula is
(ceiling – your income) / (ceiling – floor)  * limit
or
($121,000 – $110,000) / ($121,000 – $101,000) * $5,000
which comes out to $2,750.

More Information

Roth IRA Contribution Limits For 2010

The state of New Jersey has been hit quite hard by the current economic downtown and state unemployment levels have been rising.  The unemployment rate in NJ is now 9.7% (up from 9.3% prior to August) which is coincidentally the same as the national average.  New Jersey has lost 155,700 jobs since December 2007, when the jobless rate was 4.5 percent.

As a result of these  high unemployment rates New Jersey state has qualified for unemployment benefit extensions which were introduced as part of the 2009 stimulus package.

Unemployment benefits currently available in New Jersey

At the moment there are a total of 79 weeks of unemployment available:

• Initial unemployment benefits (UB – 26 weeks) – These are the regular unemployment benefits which are available regardless of the economy.
• Emergency unemployment benefits Tier I (EUC Tier I – 20 weeks)
• Emergency unemployment benefits Tier II (EUC Tier II – 13 weeks)
• Emergency benefits will be paid by the same method as the regular benefits (direct deposit or check).
• Extended benefits (EB – 20 weeks)
• 13 weeks from bill H3548 – Note that this has not passed yet.

The past year has not been very good for a lot of American workers.  Because of the 2008 financial crisis and recession – millions of Americans have lost their jobs.  The current national unemployment rate is 9.7% as of Sept 4.  While many workers will find new jobs within the time period of existing employment benefits – many more will run out of benefits before finding a new job.

On September 22, the House passed legislation called Bill H3548 which will allow any states with a total unemployment rate (TUR) of 8.5% or higher to be eligible for federal funding which will allow 13 more weeks of extended unemployment benefits for those people who have exhausted all the current benefits.  If this bill is passed then New Jersey would qualify for another 13 weeks of extended benefits.

[Edit – Please note that offer is no longer valid]

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