Page 16 - Talk of Tequesta - November '23

Page 16, The Talk Of Tequesta

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What Should You Know About RMDs?

By Sally Sima Stahl

You may spend decades minimum distributions, or RMDs – have changed recently. ones. However, converting a tax-deferred account to a Roth
contributing to various For many years, individuals had to begin taking their RMDs IRA will generate taxes in the year of conversion, so you’d
retirement accounts. But for (which are based on the account balance and the IRS’ life need the money available to pay this tax bill.
some accounts, such as a expectancy factor) when they turned 70½. The original • Donate RMDs to charity. In what’s known as a
traditional IRA and 401(k), SECURE Act of 2019 raised this age to 72, and SECURE qualified charitable distribution, you can move up to
you must start withdrawing 2.0, passed in 2022, raised it again, to 73. (If you turned 73 $100,000 of your RMDs directly from a traditional IRA to
funds at a certain point. What in 2023, and you were 72 in 2022 when the RMD limit was a qualified charity, avoiding the taxes that might otherwise
should you know about this still 72, you should have taken your first RMD for 2022 by result if you took the RMDs yourself. After 2023, the
requirement? April 1 of this year. You will then need to take your 2023 $100,000 limit will be indexed to inflation.
To begin with, the rules RMD by Dec. 31. And going forward, you’ll also need to Of course, before you start either a Roth IRA conversion
governing these withdrawals take your RMDs by the end of every year.) or a qualified charitable distribution, you will need to
– technically called required Not all retirement accounts are subject to RMDs. They consult with your tax advisor, as both these moves have
aren’t required for a Roth IRA, and, starting in 2024, issues you must consider and may not be appropriate for
Cleveland CliniC won’t be required for a Roth 401(k) or 403(b) plan. But your situation.
if your account does call for RMDs, you do need to take
But it’s always a good idea to know as much as you can
florida news them, because if you don’t, you could face tax penalties. about the various aspects of RMDs – they could play a big
Previously, this penalty was 50 percent of the amount you
part in your retirement income strategy.
were supposed to have taken, but SECURE 2.0 reduced it This article was written by Edward Jones for use by
to 25 percent.
your local Edward Jones Financial Advisor, Edward Jones,
Do You Need When you take your RMDs, you need to be aware of a Member SIPC.
key issue: taxes. RMDs are taxed as ordinary income, and,
Edward Jones is a licensed insurance producer in
Lung Cancer as such, they could potentially bump you into a higher all states and Washington, D.C., through Edward D.
Jones & Co., L.P., and in California, New Mexico and
tax bracket and possibly even increase your Medicare
premiums, which are determined by your modified adjusted
Massachusetts through Edward Jones Insurance Agency
Screening If You gross income. Are there any ways you could possibly reduce of California, L.L.C.; Edward Jones Insurance Agency of
New Mexico, L.L.C.; and Edward Jones Insurance Agency
an RMD-related tax hike?
You might have some options. Here are two to consider:
of Massachusetts, L.L.C.
Quit Smoking? • Convert tax-deferred accounts to a Roth IRA Edward Jones, its employees and financial advisors
account. You could convert some, or maybe all, of your
cannot provide tax advice. You should consult your qualified
tax advisor regarding your situation.
tax-deferred retirement accounts to a Roth IRA. By doing
so, you could lower your RMDs in the future – while adding Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
Ac c ordi ng t o t he funds to an account you’re never required to touch. So, if 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
American Cancer Society, you don’t really need all the money to live on, you could
smoking contributes to 80 include the remainder of the Roth IRA in your estate plans,
and 90 percent of lung cancer providing an initially tax-free inheritance to your loved
deaths in women and men,
respectively.
But what if you quit
smoking? Quitting has some
health benefits that start right
away and others that can
lead to improved health over
many years.
The risk of having lung Ivan Romero-Legro, M.D.
cancer or other smoking-
related illnesses decreases after you stop smoking and
continues to decrease the longer you go without smoking,
though your risk will never be as low as that of someone who
never smoked.
So, if you’ve successfully kicked the habit and are now
a former smoker, do you still need to think about having a
lung cancer screening?
According to pulmonologist Ivan Romero-Legro, M.D.,
who sees patients at Cleveland Clinic Weston Hospital, lung
cancer screening is recommended for those meeting the
criteria for high risk including:
• Age 50 to 80 with at least a 20 pack-year* history of
smoking and currently smoking or quit less than 15 years
ago, or
• Age 50 or older with at least a 20 pack-year* history of
smoking and a history of one additional risk factor such as a
family history of lung cancer, exposure to known carcinogen,
COPD, emphysema or other cancer.
*Pack-year equals the number of packs smoked per day
multiplied by the number of years smoking.
It is important to note that:
• Lung cancer screening is not recommended if your risk
of lung cancer is low, because the harms of screening may
outweigh its benefits.
• Screening is worthwhile only if you are healthy enough
to tolerate the evaluation and treatment of any lung nodules
or lung cancers that are found.
If your doctor recommends screening, look for a program
whose experts take the time to discuss its risks and benefits
with you and are experienced in lung cancer evaluation and
treatment.
Meanwhile, tell your doctor right away if you have any
of these worrisome symptoms – you may need testing to
confirm or rule out the presence of lung cancer:
• A new, persistent cough or coughing up blood
• Unexplained shortness of breath or chest pain
• Unintentional weight loss
To learn more and complete a lung cancer risk assessment,
visit ClevelandClinicFlorida.org/LungCancer today.