Page 10 - Jupiter West- November '23

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 www.palmspoolservices.com
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.
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.