Page 11 - Hobe Sound Reflections - November '23

Hobe Sound, Page 11

FinanciaL Focus ®

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

Holiday Happenings from page 10

purchase an item, which will then be shipped directly to
CCKids.
The online drive is meant to supplement the existing
Making Christmas Bright drive, which seeks toys through
a network of local businesses, churches and social groups
that coordinate toy drives among their members.
Making Christmas Bright, which in 2018 expanded
EVERY SUNDAY when it joined forces with Guardians for New Futures
and its Angel Tree program, provides nearly 3,000 gifts
9AM-2PM to children living in foster and protective care in Indian
River, Martin, St. Lucie and Okeechobee counties.
“We’re always looking for new ways to grow and
FLAGLER PARK partner in the community,” Kaiser said. “We serve nearly
1,000 children every year, so we need all the help we can
get.”
•FRESH PRODUCE Kaiser said she is unsure how many gifts will be
•LIVE MUSIC collected through the online portal.

“I anticipate it will become an invaluable tool,” she
•MOBILE CRAFT BAR said, adding that the Toys for Tots campaign in Orlando
•KIDS MARKET has been raising money and collecting toys through the
same online platform for years. “If nothing else, it will
Operated by Stuart Main Street (First & third Sunday of every month) give those who prefer not to go to the store or venture far
from home an opportunity to participate.”
The online drive is made possible through a partnership
Fresh Local Produce & Honey with Fort Pierce company D&W Sourceall and Roonga,
Organic Eggs, Beef, Seafood & Poultry an online platform that hosts drives free of charge for
nonprofits.
Household Plants & Florals To access the drive click the project banner at www.
Homemade Cheeses cckids.net.
Spices & Sauces The portal also houses a link to sign up to become
Freshly Baked Breads & Tasty Treats a sponsor for the traditional Making Christmas Bright
Pottery, Art & Home Décor program. The program works this way:
1. Sign up to become a sponsor by clicking the project

Handcrafted Jewelry & Accessories banner at www.cckids.net.
Pet Items BE A PART OF 2. Tell us how many children you’d like to sponsor
A market for growers, crafters, artists & other creators SOMETHING and we’ll send you a list.
FRESH!
3. Collect the toys among your members.

4. Call us to arrange a pickup!

But be quick! This year’s toy collection ends in early
772-285-0502 | stuartmainstreet.org/market December so that we have enough time to organize the
Stuart Main Street is a 501c3 non-profit focused on promoting the Historic Downtown. gifts and get them out to families.