Reversing Your 2020 RMD – August Deadline Looming (Aug 4, 2020)

The CARES Act implemented several measures to help Americans during coronavirus, including the ability to skip taking taxable Required Minimum Distributions (RMDs) for tax year 2020. However, the Act went into effect on March 27, 2020, after many people had already taken their 2020 RMDs earlier in the year. The IRS has since issued guidance allowing individuals to reverse their RMDs if completed by August 31, 2020.

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Returning to Work During Covid-19: Your Finances Versus Your Health (May 27, 2020)

As all 50 states begin to reopen during COVID-19, millions of people in the workforce face a new dilemma. Are they ready to return to work, balancing their finances and their health? If you’re able to work from home then your decision is easy, but not everyone is as fortunate. Before deciding whether to head back to the office, take early retirement, or resign, consider the following key factors to assess your physical and financial health.

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Life-Changing Events That Reduce Your Medicare Premium (Apr 27, 2020)

If you are what Social Security considers a “higher-income beneficiary,” you pay more for Medicare Part B, the health insurance portion of Medicare, and Part D, prescription drug coverage. The Social Security Administration (SSA) uses the most recent Federal tax return provided by the IRS to make this determination, but that might reflect your income from two years prior. If you have experienced a life-changing event that has caused an income decrease, you can request that Social Security revisit its decision.

 

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Understanding Required Minimum Distributions (RMDs) (Jan 22, 2020)

Required Minimum Distributions (RMDs) are an important part of your financial landscape in retirement. Most people must start taking RMDs from qualified retirement accounts at age 72 (previously 70 ½). Here’s what you need to know about RMDs: what RMDs are, accounts subject to RMDs, important deadlines, and more. Understanding RMDs will help avoid penalties and optimize your distributions for tax purposes.

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Age 65 – Medicare Enrollment (Jan 22, 2020)

If you’re approaching age 65, now’s the time to consider your Medicare enrollment. Medicare is the Federal health insurance program for those aged 65 and older (plus other eligible adults). With healthcare costs listed as one of the top three financial worries for most Americans [1], familiarizing yourself with the Medicare program can help maximize your entitlements. SageVest Wealth Management outlines the basics of Medicare enrollment at age 65.

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Age 72: Required Minimum Distributions (RMDs) (Jan 22, 2020)

Congratulations on celebrating your 72nd birthday! Age 72 is the age at which most people must begin taking Required Minimum Distributions (RMDs) from Traditional IRA and other qualified retirement plans. SageVest Wealth Management discusses the various factors to consider about RMDs at age 72 here.

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Age 66 – Full Retirement Age For Social Security (Jan 22, 2020)

You can claim Social Security retirement benefits as early as age 62. Many Americans do so, especially women [1]. However, claiming early means that your monthly benefit checks and, potentially, your overall lifetime payout amount, will be lower than if you wait until full retirement age for Social Security. Full Retirement Age is the age at which you become eligible to receive non-reduced benefits and, if you’re still working, are no longer subject to the earnings limit. In short, Full Retirement Age means full Social Security. 

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Age 62 – Early Social Security Retirement Benefits (Jan 22, 2020)

Age 62 is the earliest age at which you can start receiving Social Security retirement benefits. It’s also the most popular age to claim benefits [1], especially for women. Deciding whether to claim now or wait until Full Retirement Age is an important decision. Claiming early Social Security retirement benefits can make sense for some people. However, it permanently reduces your monthly payment amounts and can impact total lifetime benefits. Here’s what to consider before claiming early Social Security retirement benefits at age 62. 

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Important Estate Planning For Children Post The SECURE Act (Jan 21, 2020)

The SECURE Act of 2019 imposes significant changes for inherited IRAs received from an account owner who dies post December 31, 2019.

The law previously allowed beneficiaries of inherited IRAs the ability to ‘stretch’ IRA distributions over their lifetime. This helped to reduce the tax burden of inherited IRA distributions by potentially extending distributions over many years, particularly for younger individuals.

The passing of the SECURE Act dramatically limits the ability to defer distributions from inherited IRAs received from a decedent who dies as of January 1, 2020 or later. The new law requires all inherited IRA assets to be distributed within 10 years of the IRA owner’s death, with a few exceptions, including for minor children.

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