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How to reduce your ‘widow’s penalty’

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After a spouse dies, the survivor often ends up paying higher taxes on less income — something known by accountants and financial planners as the “widow’s penalty,” because women typically outlive their husbands.

Couples who know what’s coming often can take steps to soften the penalty’s effect, but too many don’t think far enough ahead, says Barbara O’Neill, a certified financial planner and educator in Ocala, Florida.

“A lot of people just underestimate what the impact will be financially,” O’Neil says. In my latest for ABC News, learn how to reduce your ‘widow’s penalty.’

This week’s money news

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This week’s top story: What to expect if the Credit Card Competition Act passes. In other news: How to avoid the cost, risk and stress of unneeded medical tests, how to get the best interest rate on your business loan, and get ready for an even busier holiday travel season in 2023.

What to Expect if the Credit Card Competition Act Passes
Will consumers experience lower prices, gutted rewards programs — or nothing at all?

How to Avoid the Cost, Risk and Stress of Unneeded Medical Tests
More than half of the billions of annual tests in the U.S. may be unnecessary. Here’s how to talk to your doctor about it.

How to Get the Best Interest Rate on Your Business Loan
The interest rate you receive is generally tied to the lender’s perception of your ability to repay the loan.

Get Ready for an Even Busier Holiday Travel Season in 2023
In our annual holiday travel survey, 50% of respondents reported plans to hit the road for the holidays.

This week’s money news

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This week’s top story: New changes for Medicare in 2024. In other news: Fed hits pause on rate hikes, third times since March 2022, Black Friday shopping could look different this year, and the busiest days to fly during the winter holidays.

What’s New for Medicare in 2024?
Check next year’s premiums and deductibles, as well as program changes.

Fed Hits Pause on Rate Hikes, Third Time Since March 2022
The federal funds rate remains at 5.25% to 5.50%.

Black Friday Shopping Could Look Different This Year, Experts Say
Here’s what marketing, retail and supply chain experts expect for Black Friday 2023.

The Busiest Days to Fly During the Winter Holidays
The Sunday after Thanksgiving is one of the busiest travel days of the year.

5 strategies for navigating today’s digital tipping culture

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The nearly universal experience of finding yourself face-to-face with a checkout counter screen asking you to select an amount to tip for service can prompt a cascade of awkward questions: How much should you tip on a $5 coffee if anything? How can you decide before the cup has even been poured? Is it rude to select “no tip,” then slink away with your drink?

The answers to those questions vary depending on whom you ask, but tipping experts agree on one thing: We get prompted to tip much more frequently these days, largely because of the explosion of cashless payment methods with automated tipping options. Another thing they agree on: You don’t always have to say “yes.”

In Kimberly Palmer’s latest for the Seattle Times, learn 5 strategies for navigating today’s digital tipping culture.

Does a 401(k) employer match tempt you to cash out?

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Many companies try to help their workers to save for retirement. Employers often offer 401(k)s, company matches and automatic enrollment to encourage saving.

Much of that effort goes to waste, though, when employees leave. A study published last year in Marketing Science, a peer-reviewed research journal, found more than 40% of departing workers cashed out at least part of their 401(k)s, and most of those drained every dime.

What’s more, employers may bear at least some of the blame, according to researchers Yanwen Wang of the University of British Columbia, Muxin Zhai of Texas State University and John Lynch Jr. of the University of Colorado.

The study, titled “Cashing Out Retirement Savings at Job Separation,” suggests generous company matches can make cashing out more tempting. In my latest for ABC News, learn how a 401(k) employer match tempt you to cash out.

This week’s money news

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This week’s top story: Watch for these 3 Medigap shopping surprises to avoid overpaying. In other news: What home buyers should know as mortgage rates top 8%, cut EV costs with electric company incentives, and what to buy on Black Friday and Cyber Monday 2023.

Watch for These 3 Medigap Shopping Surprises to Avoid Overpaying
Medicare beneficiaries should watch for shopping surprises when choosing a Medigap plan to avoid paying too much for coverage.

As Mortgage Rates Top 8%, What Home Buyers Should Know
Interest rates on 30-year fixed-rate home loans have reached a milestone not seen for over two decades. What does that mean for this housing market?

Cut EV Costs With Electric Company Incentives
Electricity providers offer a range of EV rebates, from vehicle purchase to charging station installation.

What to Buy (and Skip) on Black Friday and Cyber Monday 2023
Retailers like Amazon, Target and Walmart pushed October sales as an early start to the holiday shopping season again this year.