Page 8 - Southern Exposure- June '23

Page 8, Southern Exposure BW

finanCial foCuS

New Law May Offer Financial Opportunities

By Sally Sima Stahl

Your own decisions and • Employer contribution credit – You may now be able to This article was written by Edward Jones for use by
actions typically determine get a tax credit based on employee matching or profit-sharing your local Edward Jones Financial Advisor, Edward Jones,
your financial strategies. But contributions. This credit is capped at $1,000 per employee Member SIPC.
outside events can affect your and phases out gradually over five years. Edward Jones is a licensed insurance producer in all states
choices, too. And that may be • Military spouse tax incentive – If you have 100 or fewer and Washington, D.C., through Edward D. Jones & Co., L.P.,
the case with the recent passage employees who earn at least $5,000 annually, you can earn a and in California, New Mexico and Massachusetts through
of the SECURE 2.0 Act. tax credit of up to $500 for three years if you make military Edward Jones Insurance Agency of California, L.L.C.; Edward
This piece of legislation spouses eligible for a retirement plan, such as a 401(k) or Jones Insurance Agency of New Mexico, L.L.C.; and Edward
covers many areas. But here SEP IRA. You can receive the credit for the year in which the Jones Insurance Agency of Massachusetts, L.L.C.
are some changes that may be military spouse is hired, plus the next two taxable years. Edward Jones, its employees and financial advisors cannot
of interest to you, depending These aren’t the only provisions in the SECURE 2.0 Act that provide tax advice. You should consult your qualified tax
on your situation: may be relevant to you, and some parts of the new law go into advisor regarding your situation.
If you’re a retiree … effect in the future. You may want to contact your financial and Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
• Higher age for RMDs – The age at which you must take tax advisors to see just how you might ultimately be affected 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
withdrawals — known as required minimum distributions, or by this legislation, and how you could take advantage of it.
RMDs — from your traditional IRA and 401(k) has increased
from 72 to 73, effective this year. (If you turned 72 in 2022, but
still haven’t taken your first RMD, you will need to do so this
year.) And in 2033, the RMD age will increase again, to 75. You it’S the law
don’t have to wait until these ages before taking withdrawals,
but the new age limits may affect your withdrawal decisions.
• Lower penalties for missed RMDs – If you don’t take at
least the RMD for a given year, you could face tax penalties. Did You Know That, In Florida…
Previously, this penalty was 50 percent of the amount you were
supposed to have taken but now it’s reduced to 25 percent.
• New options for qualified charitable distributions – If By Adam S. Gumson, Esq.
you’re 70½ or older, you can make a one-time qualified
charitable distribution (QCD) of up to $50,000 to entities that Major life changes (such better left to the family, and sometimes results in designating
previously couldn’t receive these QCDs, including charitable as getting married, divorced a guardian whom the parents might not have chosen.
remainder annuity trusts, charitable remainder unitrusts and or remarried, children Looking to start a partnership? An operating agreement
charitable gift annuities that meet certain criteria. Because becoming adults, financial memorializes all of the “handshake” agreements as to what
QCDs are typically excluded from your taxable income and or residency changes) should happens if one of the owners becomes disabled, divorces or dies,
could satisfy some or all of your required RMDs, which are trigger a review of your estate and will prevent confusion down the road because both parties
otherwise taxable, these expanded opportunities may prove planning documents. It’s also understand the agreed-upon rules before the situation arises.
beneficial from a tax standpoint. Consult with your tax advisor a good idea to review them Jupiter Law Center is a private neighborhood law firm
to determine if and how QCDs make sense for your situation. every few years to ensure they located in the RiverPlace Professional Center, 1003 W.
If you’re still working … still protect you the way you Indiantown Road, Suite 210, Jupiter, Fla., (561) 744-4600,
• Roth contributions to retirement plans – Starting this year, intended. jupiterlawcenter.com. The firm provides peace of mind by
if you participate in a 401(k) or similar plan, you can take your In a real estate transaction, solving problems with integrity and compassion in the areas
employer’s matching and other contributions on a Roth basis. a homeowner’s association is permitted 10 days after receipt of estate planning (wills and trusts, powers of attorney, health
While these contributions will count as taxable income, they of a written or electronic request for the estoppel certificate to care surrogates, living wills, probate estates, succession
can ultimately be withdrawn, along with any earnings they issue the certificate. The association is permitted to charge a planning, contracts and purchase/sale agreements), family
generate, tax free, provided you meet certain conditions. fee for the service, but it must be set by written resolution of law (divorce, paternity, child support and time sharing,
If you’re a business owner … the Board. alimony, property distribution, modifications, collaborative
• Increased tax credit for starting a retirement plan – If Guardianship can provide certain protections for a law, pre/post nuptial agreements) and real estate (community
you have 50 or fewer employees, you can now claim a startup special needs ward, but is not always the best option. It can association law, residential and commercial transactions,
credit covering 100 percent — up from 50 percent — of the be expensive, involve the court making decisions which are deeds, closings).
administrative costs of opening a 401(k) plan, up to $5,000
for each of the first three years of the plan.
Susan Has Moved To A
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