Page 10 - Jupiter West- November '23
P. 10

Page 10, Jupiter West
      Financial Focus                          ®

      What Should You Know                               and SECURE 2.0, passed in 2022, raised it again, to 73. (If you   IRA will generate taxes in the year of conversion, so you’d
                                                         turned 73 in 2023, and you were 72 in 2022 when the RMD
                                                                                                           need the money available to pay this tax bill.
      About RMDs?                                        limit was still 72, you should have taken your first RMD for     •  Donate  RMDs  to  charity. In what’s known as a
                                                         2022 by April 1 of this year. You will then need to take your   qualified charitable distribution, you can move up to
      By Sally Sima Stahl                                2023 RMD by Dec. 31. And going forward, you’ll also need   $100,000 of your RMDs directly from a traditional IRA to
        You may spend decades                            to take your RMDs by the end of every year.)      a qualified charity, avoiding the taxes that might otherwise
      contributing  to various                             Not all retirement accounts are subject to RMDs. They   result if you took the RMDs yourself. After 2023, the
      retirement accounts. But                           aren’t required for a Roth IRA, and, starting in 2024, won’t be   $100,000 limit will be indexed to inflation.
      for some accounts, such as a                       required for a Roth 401(k) or 403(b) plan. But if your account     Of course, before you start either a Roth IRA conversion
      traditional IRA and 401(k),                        does call for RMDs, you do need to take them, because if you   or a qualified charitable distribution, you will need to consult
      you must start withdrawing                         don’t, you could face tax penalties. Previously, this penalty   with your tax advisor, as both these moves have issues you
      funds at a certain point.                          was 50 percent of the amount you were supposed to have   must consider and may not be appropriate for your situation.
      What should you know                               taken, but SECURE 2.0 reduced it to 25 percent.     But it’s always a good idea to know as much as you can
      about this requirement?                              When you take your RMDs, you need to be aware of   about the various aspects of RMDs – they could play a big
        To begin with, the rules                         a key issue: taxes. RMDs are taxed as ordinary income,   part in your retirement income strategy.
      governing these withdrawals                        and, as such, they could potentially bump you into a higher     This article was written by Edward Jones for use by
      – technically called required minimum distributions, or RMDs   tax bracket and possibly even increase your Medicare   your local Edward Jones Financial Advisor, Edward Jones,
      – have changed recently. For many years, individuals had to   premiums, which are determined by your modified adjusted   Member SIPC.
      begin taking their RMDs (which are based on the account   gross income. Are there any ways you could possibly reduce     Edward  Jones  is  a  licensed  insurance  producer  in
      balance and the IRS’ life expectancy factor) when they turned   an RMD-related tax hike?             all states and Washington, D.C., through Edward D.
      70½. The original SECURE Act of 2019 raised this age to 72,     You might have some options. Here are two to consider:  Jones & Co., L.P., and in California, New Mexico and
                                                           •  Convert  tax-deferred  accounts  to  a  Roth  IRA   Massachusetts through Edward Jones Insurance Agency
                                                         account. You could convert some, or maybe all, of your
                                                                                                           of California, L.L.C.; Edward Jones Insurance Agency of
        Medicare Corner                                  tax-deferred retirement accounts to a Roth IRA. By doing   New Mexico, L.L.C.; and Edward Jones Insurance Agency
                                                                                                           of Massachusetts, L.L.C.
                                                         so, you could lower your RMDs in the future – while adding
        With Kathy O                                     funds to an account you’re never required to touch. So, if     Edward Jones, its employees and financial advisors
                                                                                                           cannot provide tax advice. You should consult your qualified
                                                         you don’t really need all the money to live on, you could
                                                         include the remainder of the Roth IRA in your estate plans,
                                                                                                           tax advisor regarding your situation.
                                                         providing an initially tax-free inheritance to your loved     Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
        It’s Time For The Medicare                       ones. However, converting a tax-deferred account to a Roth   1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
        Annual Enrollment Period,                                                                 “Service is our number one priority”
        Oct. 15 To Dec. 7                                                                                       561-743-0070

        It’s That Time
        Again To Ask – Am                                                                          
        I On The Right
        Medicare Plan?

          This is what you need
        to know. …
          Insurance companies
        are continuing to make
        improvements in benefits
        to their Advantage Plans
        to help members receive
        low-cost care and extra benefits beyond original Medicare.
        It is important to annually review your plan and look at
        some other options available in your area, because you
        may miss out on additional benefits and/or lower costs.                                                                     Expires 12/15/23.
        Every year all active Medicare A and B recipients are
        eligible to make changes to their plan during what is                                                            State Licensed & Insured
        known as annual enrollment period (AEP) which runs   Serving Palm Beach County                                 CPC # 1457468 • LPG#30099
        from Oct. 15 to Dec. 7. Plans are effective January of the
        following year.
          So, what do I do now and what are my options? If
        you are on a Medicare Advantage or Prescription Drug
        Plan (PDP), you will receive an Annual Notice of Change
        that will explain any changes that are effective January
        2024. If you do not get this important document, contact
        your plan provider. If you are satisfied with your current
        plan and the upcoming changes, you do not need to do
        anything. The plan will automatically renew January
        2024. If you do not like the coverage or are interested
        in seeing if there are other options with more benefits or
        lower costs, contact a local agent like me!
          For those on a Medicare Supplement plan, you have
        the option during AEP to change to a Medicare Advantage
        Plan that may have a $0 monthly premium. If you try the
        Advantage Plan, and in the first year want to switch back
        to your supplement, you have guaranteed issue under
        “Trial Rights.” Which means you can switch back to your
        supplement anytime during the next 12 months.
          How do I go about comparing plans? As a consumer,
        there are two important lists you should have when
        comparing plans and making the best decision for you:
        1) A list of your medical providers and 2) A list of your
        prescription drugs. You have several resources to assist
        your decision-making process for AEP. You can contact
        Medicare by phone at 800-MEDICARE or online at www. or you can contact a local agent like me!
          What about all those commercials? These ads are
        designed to generate the most incoming calls possible. They
        list all possible free benefits, but include a disclaimer that
        you may not qualify for these benefits. As a local agent,
        I can help clarify which benefits you may or may not be
        qualified for to assist you in enrolling in a new plan.
          For a no cost or obligation plan review, please call
        me at (561) 835-5413 or cell, (561) 212-7640. I conduct
        reviews in person and on the phone. I speak Medicare.
   5   6   7   8   9   10   11   12