Page 10 - Jupiter Ocean Mile- November '23

Page 10, Jupiter Ocean Mile
Financial Focus ®

What Should You Know this age to 72, and SECURE 2.0, passed in 2022, raised it However, converting a tax-deferred account to a Roth IRA
again, to 73. (If you turned 73 in 2023, and you were 72
will generate taxes in the year of conversion, so you’d need
About RMDs? in 2022 when the RMD limit was still 72, you should have the money available to pay this tax bill.
taken your first RMD for 2022 by April 1 of this year. You • Donate RMDs to charity. In what’s known as a qualified
By Sally Sima Stahl will then need to take your 2023 RMD by Dec. 31. And charitable distribution, you can move up to $100,000 of your
You may spend decades going forward, you’ll also need to take your RMDs by the RMDs directly from a traditional IRA to a qualified charity,
contributing to various end of every year.) avoiding the taxes that might otherwise result if you took
retirement accounts. But Not all retirement accounts are subject to RMDs. They the RMDs yourself. After 2023, the $100,000 limit will be
for some accounts, such as a aren’t required for a Roth IRA, and, starting in 2024, won’t be indexed to inflation.
traditional IRA and 401(k), required for a Roth 401(k) or 403(b) plan. But if your account Of course, before you start either a Roth IRA conversion
you must start withdrawing does call for RMDs, you do need to take them, because if you or a qualified charitable distribution, you will need to consult
funds at a certain point. don’t, you could face tax penalties. Previously, this penalty with your tax advisor, as both these moves have issues you
What should you know was 50 percent of the amount you were supposed to have must consider and may not be appropriate for your situation.
about this requirement? taken, but SECURE 2.0 reduced it to 25 percent. But it’s always a good idea to know as much as you can
To begin with, the rules When you take your RMDs, you need to be aware of a about the various aspects of RMDs – they could play a big
governing these withdrawals key issue: taxes. RMDs are taxed as ordinary income, and, part in your retirement income strategy.
– technically called required minimum distributions, or as such, they could potentially bump you into a higher tax This article was written by Edward Jones for use by
RMDs – have changed recently. For many years, individuals bracket and possibly even increase your Medicare premiums, your local Edward Jones Financial Advisor, Edward Jones,
had to begin taking their RMDs (which are based on the which are determined by your modified adjusted gross Member SIPC.
account balance and the IRS’ life expectancy factor) when income. Are there any ways you could possibly reduce an Edward Jones is a licensed insurance producer in all states
they turned 70½. The original SECURE Act of 2019 raised RMD-related tax hike? and Washington, D.C., through Edward D. Jones & Co., L.P.,
You might have some options. Here are two to consider: and in California, New Mexico and Massachusetts through
• Convert tax-deferred accounts to a Roth IRA
Edward Jones Insurance Agency of California, L.L.C.;
Medicare Corner account. You could convert some, or maybe all, of your Edward Jones Insurance Agency of New Mexico, L.L.C.; and
Edward Jones Insurance Agency of Massachusetts, L.L.C.
tax-deferred retirement accounts to a Roth IRA. By doing
With Kathy O so, you could lower your RMDs in the future – while adding Edward Jones, its employees and financial advisors
cannot provide tax advice. You should consult your qualified
funds to an account you’re never required to touch. So, if
you don’t really need all the money to live on, you could
tax advisor regarding your situation.
include the remainder of the Roth IRA in your estate plans, Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
It’s Time For The Medicare providing an initially tax-free inheritance to your loved ones. 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
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It is important to annually review your plan and look at (561) 622-2815 • www.joannegreendds.com
some other options available in your area, because you
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Every year all active Medicare A and B recipients are Hospital of the University of Penn - General Practice Residency Training
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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.
medicare.gov 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.