Page 6 - Jupiter West - February '25

Page 6, Jupiter West
Financial Focus ®

What Should You Know About you were born in 1960 or later, your RMD age is 75. You You may be able to avoid taxes in a particular year if you

RMDS? can postpone accepting your first RMD until April 1 of the transfer your RMDs to a qualified charity in what’s known
year after you reach your RMD age, but this will result in
as a qualified charitable distribution.
two RMDs for the year. After you take your first RMD, you • If I inherit an IRA or 401(k), am I subject to RMDs?
By Sally Sima Stahl must take subsequent ones by December 31 of each year. Yes. When you take RMDs from an inherited account, you
You may spend many • What penalties will be assessed if I don’t take all my generally must withdraw all the funds within 10 years, as
decades contributing to RMDs? For every dollar not withdrawn, the IRS will charge opposed to over your lifetime, which is the RMD window
your IRA and 401(k), but a 25 percent penalty, but this can drop to 10 percent if you that applies to your own accounts. The rules are somewhat
eventually you will likely subsequently withdraw the correct amount within two years. different if you inherit an IRA or 401(k) from your spouse.
need to take the money • Which accounts have RMDs? RMDs apply to traditional In any case, though, you’ll want to consult with your tax
out — in fact, you must IRAs, as well as other types of IRAs, including SIMPLE and advisor about how to take RMDs from an inherited account.
take the money out or face SEP IRAs. RMDs don’t apply to Roth IRAs. RMDs also If you’re already subject to RMDs, be sure you’ve taken
penalties. What should you apply to traditional 401(k)s, but not Roth 401(k)s. them before the year ends. And if you haven’t yet started
know about these mandatory • Can I withdraw more than the RMD for any given year? taking RMDs, learn as much as you can about them —
withdrawals? Yes, you are free to take out as much as you want. However, because the more you know, the more likely you’ll make the
Here are some of the if you take out more than the RMD for one year, you can’t right moves at the right time.
basics: apply the excess to the RMD for the next year. This article was written by Edward Jones for use by
• What are they called? Mandatory withdrawals are • How are RMDs calculated? Typically, your RMDs are your local Edward Jones Financial Advisor, Edward Jones,
technically called required minimum distributions, or RMDs. determined by dividing your account balance from the prior Member SIPC.
• When must I take RMDs? If you were born before 1951, December 31 by a life expectancy factor published by the Edward Jones is a licensed insurance producer in all states
you’ve probably already begun taking RMDs. If you were IRS. Your financial professional should be able to perform and Washington, D.C., through Edward D. Jones & Co., L.P.,
born between 1951 and 1959, your RMD age is 73. And if this calculation for you. and in California, New Mexico and Massachusetts through
• If I have multiple accounts, do I have to take an RMD Edward Jones Insurance Agency of California, L.L.C.;
Edward Jones Insurance Agency of New Mexico, L.L.C.; and
from each one? If you are taking RMDs from a traditional
Medicare Corner IRA, you must calculate each RMD individually, but you Edward Jones Insurance Agency of Massachusetts, L.L.C.
can take the total amount from one or more IRAs. If you’re
Edward Jones, its employees and financial advisors cannot
With Kathy O taking RMDs from a 401(k) or similar plan, you must take provide tax advice. You should consult your qualified tax
advisor regarding your situation.
the RMD from each of your accounts.
• How are RMDs taxed? You are typically taxed at your
Contact us at (561) 748-7600, Sally Sima Stahl, CFP ,
®
income tax rate on the amount of the withdrawn RMD. AAMS , 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
™
Since the Medicare
Annual Enrollment
Period is ending Dec.
7, I’d like to offer some Peripheral
general Medicare tips
and advice. Neuropathy?
The single most
important thing you can
do for yourself is to have FREE Consultation
your own agent. Your
agent is an amazing
resource to reorder for Acupuncture
lost cards, answer benefit questions, give a list of
specialists, review notices, claim statements and so
much more. Your agent can even answer questions
about those pesky TV ads and all the gossip from your
friends about Medicare. Best of all, there is no cost to
have an agent.
Moving? Do not change your address with your 561-745-1002
Advantage, supplement or drug plan carrier prior to
your move without first speaking to your agent – if 654 West Indiantown
you don’t have one, find one. When you call member THE PATIENT AND ANY OTHER PERSON RESPONSIBLE FOR PAYMENT HAS THE RIGHT TO Road, Jupiter, FL 33458
REFUSE TO PAY, CANCEL PAYMENT OR BE REIMBURSED FOR PAYMENT FOR ANY OTHER
service and change your address, they may cancel your SERVICE, EXAMINATION OR TREATMENT WHICH IS PERFORMED AS A RESULT OF AND
WITHIN 72 HOURS OF RESPONDING TO THE ADVERTISEMENT FOR THE FREE, DISCOUNTED
plan at the end of the current month, even if you don’t OR REDUCED FEE SERVICES, EXAMINATION OR TREATMENT. www.drlaruffa.com
move until next month. This could unknowingly leave
you with no coverage.
The special enrollment period for moving outside
your plan service rules are: 1) if you tell your plan before
you move, your chance to switch plans begins the month
before the month you move and continues for two full
months after you move, or 2) If you tell your plan after
you move, your chance to switch plans begins the month
you tell your plan, plus two more full months.
It is also important to change your address with
Medicare. This is done through Social Security by
phone or online at ssa.gov.
Why is Social Security involved when I need services
with Medicare? Social Security (SSA) is the gatekeeper
for Medicare. Your earnings are tracked by SSA and you
must qualify with 40 work quarters to receive Medicare.
Medicare also relies on SSA to determine your Part B
Premium and, if you receive SSA benefits, to collect
your premium. If you are not receiving SSA benefits,
you will be billed quarterly by Medicare.
If you still need to review or change your Medicare
plan, open enrollment is Jan. 1 to March 30 and you
may qualify for a special enrollment. Call me! If you
have new Medicare Topic suggestions, email me at
czak82@aol.com.
I speak Medicare: Supplement, Drug Plan and
Advantage Plan.
For your free Medicare plan review please call me,
Kathy Olejniczak, agent, at (561) 835-5413 or cell/text
(561) 212-7640.