Page 13 - Jupiter Spotlight - November '19

Jupiter Spotlight, Page 13
Financial Focus

Be Creative When minimum distributions, or RMDs – from your traditional IRA Your grown children may not always be able to afford to
Withdrawing From and your 401(k) or similar employer-sponsored retirement “max out” on their IRAs. You might want to help them with
any excess funds from your own retirement accounts. You
plan, such as a 457(b) or 403(b). (A Roth IRA is not subject
Retirement Accounts to these rules; you can essentially keep your account intact can give $15,000 per year, per recipient, without incurring
for as long as you like.) You can take more than the RMD, any gift taxes – an amount far higher than the current annual
By Sally Sima Stahl but if you don’t take at least the minimum (which is based IRA contribution limit of $6,000 (or $7,000 for individuals
Like many people, on your account balance and your life expectancy), you’ll 50 or older).
you may spend decades generally be taxed at 50 percent of the amount you should • Help your grandchildren pay for college. You might
putting money into your have taken – so don’t forget these withdrawals. want to contribute to an investment specifically designed
IRA and your 401(k) or Here, then, is the question: What should you do with the to build assets for college. A financial professional can help
similar employer-sponsored RMDs? If you need the entire amount to help support your you choose which investments might be most appropriate.
retirement plan. But lifestyle, there’s no issue – you take the money and use it. Of course, if your grandchildren are already in college,
eventually you will want to But what if you don’t need it all? Keeping in mind that the you are free to simply write a check to the school to help
take this money out – if you withdrawals are generally fully taxable at your personal cover tuition and other expenses.
must start withdrawing some income tax rate, are there some particularly smart ways in • Help support a charitable organization. Due to recent
of it. How can you make the which you can use the money to help your family or, possibly, changes in tax laws, many individuals now claim a standard
best use of these funds? a charitable organization? deduction, rather than itemizing. As a result, there’s less of
To begin with, here’s some background: When you Here are a few suggestions: an incentive, from a tax standpoint, for people to contribute
turn 70½, you need to start withdrawals – called required • Help your grown children with their retirement accounts. to charitable organizations.
But if you’d still like to support a charitable group and gain
potential tax benefits, you might want to consider moving
JUPITER INLET LIGHTHOUSE BENEFIT some, or all, of your required distributions from your IRA
to a charity.
You can transfer up to $100,000 from your IRA in this
type of qualified charitable distribution, thus meeting your
RMD requirements without adding to your taxable income.
Furthermore, this move might keep you in a lower tax
bracket. (Before making this transfer, though, you will need
to consult with your tax advisor.)
Your RMDs can contribute greatly to your retirement
income, but, as we’ve seen, they can do even more than
that – so use them wisely.
This article was written by Edward Jones for use by
your local Edward Jones financial advisor. Edward Jones,
its employees and financial advisors cannot provide tax or
legal advice. You should consult your attorney or qualified
tax advisor regarding your situation.
Call me for a free portfolio review at (561) 748-7600,
Sally Sima Stahl, AAMS, 1851 W. Indiantown Road, Ste.
106, Jupiter, FL 33458.

It’s The Law!

Did You Know That, In

Florida…

By Adam S. Gumson, Esq.
A prenuptial or
postnuptial agreement is
commonly signed by older
Nov 23, 2019 adults, often for a second
or later marriage, to protect
the bulk of their assets for
the benefit of their children
6–9pm from prior relationships.
In a farbar as-is
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without the seller having to make any additional repairs or
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without losing his/her deposit if a timely inspection reveals
issues for which the buyer is unwilling to pay for and for
Music which the seller refuses to lower the purchase price.
T
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need of a guardian to manage his/her affairs.
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