Page 21 - The Jewish Voice - November '23

The Jewish Voice, Page 21

Lifestyles from page 20 SECURE Act of 2019 raised this age to 72, and SECURE You might have some options. Here are two to
Financial Focus 2.0, passed in 2022, raised it again, to 73. (If you turned consider:
• Convert tax-deferred accounts to Roth IRA. You

73 in 2023, and you were 72 in 2022 when the RMD limit
What Should You Know About RMDs? was still 72, you should have taken your first RMD for could convert some, or maybe all, of your tax-deferred
retirement accounts to a Roth IRA. By doing so, you
2022 by April 1 of this year. You will then need to take
By Sally Sima Stahl your 2023 RMD by Dec. 31. And going forward, you’ll could lower your RMDs in the future — while adding
You may spend decades also need to take your RMDs by the end of every year.) funds to an account you’re never required to touch. So, if
contributing to various Not all retirement accounts are subject to RMDs. They you don’t really need all the money to live on, you could
retirement accounts. But aren’t required for a Roth IRA, and, starting in 2024, include the remainder of the Roth IRA in your estate plans,
for some accounts, such as a won’t be required for a Roth 401(k) or 403(b) plan. But providing an initially tax-free inheritance to your loved
traditional IRA and 401(k), if your account does call for RMDs, you do need to take ones. However, converting a tax-deferred account to a
you must start withdrawing them because, if you don’t, you could face tax penalties. Roth IRA will generate taxes in the year of conversion,
funds at a certain point. Previously, this penalty was 50 percent of the amount you so you’d need the money available to pay this tax bill.
What should you know were supposed to have taken, but SECURE 2.0 reduced • Donate RMDs to charity. In what’s known as a
about this requirement? it to 25 percent. qualified charitable distribution, you can move up to
To begin with, the When you take your RMDs, you need to be aware of a $100,000 of your RMDs directly from a traditional IRA to
rules governing these key issue: taxes. RMDs are taxed as ordinary income and, a qualified charity, avoiding the taxes that might otherwise
withdrawals — technically called required minimum as such, they could potentially bump you into a higher result if you took the RMDs yourself. After 2023, the
distributions, or RMDs — have changed recently. For tax bracket and possibly even increase your Medicare $100,000 limit will be indexed to inflation.
many years, individuals had to begin taking their RMDs premiums, which are determined by your modified Of course, before you start either a Roth IRA
(which are based on the account balance and the IRS’ life adjusted gross income. Are there any ways you could conversion or a qualified charitable distribution, you will
expectancy factor) when they turned 70½. The original possibly reduce an RMD-related tax hike? 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.
By knowing exactly what to expect from Social
Security, including the tax effects, you can more effectively
incorporate your benefits into your overall retirement
income planning – and the better your plans, the more
you’ll be able to enjoy your life as a retiree. 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.

Medicare Corner

with Kathy O

It’s Time for Medicare
Annual Enrollment Period
It’s that Time Again to
Ask: Am I on the Right
Medicare Plan?
This is what you need to
know:
Insurance companies
PUT YOUR MIND AT EASE are continuing to make
improvements in benefits
A quick screening can detect lung cancer to their Advantage plans to
help members receive low-
at its earliest stage. cost care and extra benefits
beyond original Medicare.
It is important to annually review your plan and look
Did you know lung cancer can be detected at its earliest and most at some other options available in your area, because
treatable stage? The team at Cleveland Clinic Weston Hospital you may miss out on additional benefits and/or lower
costs. Every year all active Medicare A & B recipients
uses low-dose CT screenings to detect lung cancer earlier. are eligible to make changes to their plan during what
That means our experts, from pulmonologists and oncologists is known as Annual Enrollment Period (AEP), which
to thoracic surgeons, can provide patients with nonsurgical runs from October 15 to December 7. Plans are effective
January of the following year.
and surgical treatments sooner. 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
Find out if you need a lung cancer screening. your plan provider. If you are satisfied with your current
plan and the upcoming changes, you do not need to do
ClevelandClinicFlorida.org/LungScreening 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 guarantee issue under
“Trial Rights.” Which means you can switch back to your
supplement ANYTIME during the next 12 months.

Lifestyles on page 22