Page 12 - Hobe Sound Reflections - July '22
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Page 12, Hobe Sound

                                                    Financial Focus

      New Limits Expand 401(k),                            adjusted gross income (MAGI) is $68,000 or less ($109,000 for   and 403(b) plans is $20,500 – up $1,000 from 2021. If you’re
                                                           Single taxpayers can claim the full deduction if your modified
                                                                                                           50 or older, you can put in an extra $6,500 this year, for a total
      IRA Opportunities                                  married filing jointly), with deductibility decreasing at higher   of $27,000.
                                                         income levels and phasing out entirely at $78,000 ($129,000 for      These changes may not seem monumental, but when you’re
      By Sally Sima Stahl                                married filing jointly). But here’s the key point: Compared to   saving for retirement, any opportunities to invest and potentially
         You could spend two,                            2021, these ranges are $2,000 higher for single filers and $4,000   reduce taxes, of whatever size, can be valuable. So, review your
      or even three, decades in                          higher for those who are married and filing jointly – which   options to determine how you can help yourself move closer to
      retirement. So, to pay for all                     means that this year, you might have more opportunities to make   your retirement goals.
      those years, you’ll probably                       deductible contributions.                            This article was written by Edward Jones for use by
      need to take full advantage                           And a similar type of increase applies to Roth IRA eligibility.   your local Edward Jones Financial Advisor, Edward
      of your retirement accounts.                       In 2022, if you’re a single filer, you can put in up to $6,000   Jones, Member SIPC.
      And in 2022, you may have                          ($7,000 if you are 50 or older) in a Roth IRA if your modified      Edward Jones is a licensed insurance producer in all states
      expanded  opportunities                            adjusted gross income (MAGI) is less than $129,000 – up from   and Washington, D.C., through Edward D. Jones & Co., L.P.,
      to deduct retirement  plan                         $125,000 in 2021. Allowable contributions are reduced at higher   and in California, New Mexico and Massachusetts through
      contributions on your tax                          income levels and phased out if your MAGI is $144,000 or more,   Edward Jones Insurance Agency of California, L.L.C.; Edward
      return.                                            up from $140,000 in 2021. If you’re married and file jointly, the   Jones Insurance Agency of New Mexico, L.L.C.; and Edward
         Before looking at what’s changed this year, let’s review   respective ranges are $204,000 to $214,000, up from $198,000   Jones Insurance Agency of Massachusetts, L.L.C.
      the key benefits of these accounts:                to $208,000 in 2021. Again, higher ranges may mean more      Edward Jones, its employees and financial advisors cannot
         • Traditional IRA – You typically contribute pretax   opportunities for you. (Consult your tax advisor to determine   provide tax advice. You should consult your qualified tax advisor
      (deductible) dollars to a traditional IRA, and your earnings   your eligibility to contribute to a Roth IRA or make deductible   regarding your situation.
      can grow tax-deferred.                             contributions to a traditional IRA.)                 Contact us at (561) 748-7600, Sally Sima Stahl, AAMS, 1851
         • Roth IRA – You invest after-tax dollars in a Roth IRA,      And finally, the annual contribution limit for 401(k), 457(b)   W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
      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 59½ or older when you
      begin taking withdrawals.
         • 401(k) – A 401(k) or similar 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
      generally funded with pretax dollars and provides tax-
      deferred earnings. Some employers offer a Roth 401(k), in
      which employees contribute after tax-dollars and can take
      tax-free withdrawals if they meet the same age and length-
      of-ownership 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 a 401(k) or similar plan, you
      can always deduct the full amount of your contribution
      on your tax return, no matter 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.

         Fiercely Protective

         Like every mother, Commissioner Stacey Hetherington wants the best
         for her boys…  a good future, a better life. She loves this County, too.

         And she gets fighting mad when others try to destroy our unique home!

                                                                                                               Deeply rooted in our County,
                                                                                                               Commissioner Hetherington
                                                                                                                  is working to protect our
                                                                                                                  water and our way of life.

                                                                                                               • Stopping the pollution of our waterways

                                                                                                               • Voting against uncontrolled growth

                                                                                                               • Opposed to overdevelopment in the
                                                                                                                 City of Stuart

                                                                                                               • Finding a balanced, smart approach
                                                                                                                 to growth issues that enhances our
                                                                                                                 community’s charm

                                                                                                               • Keeping taxes low and affordable for
                                                                                                                 working families and struggling seniors
                                                                                                                 during these difficult times

                                                                                                               • Prioritizing public safety

                               Paid by Stacey Hetherington, Rep, for Martin County Commission, Dist. 2
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