distributions

Join us as we demystify the complexities of 401(k) plans and provide knowledgeable guidance to help you make the most of your retirement contributions. We'll cover the ins and outs of 401(k) plans, discuss contributions, and learn about navigating investment options. Whether you're just starting your career or nearing retirement age, this podcast is an essential resource to pursue a golden retirement. 

The start of 2023 brought us another round of retirement changes with SECURE Act 2.0 officially taking effect and there are a number of important provisions that retirees need to be aware of. 

In this episode, Laura Stover, RFC® and Michael Wallin, CFP®  will take you through the changes they’ve identified as being most impactful for retirees and make sure you have a good understanding of what this means moving forward. SECURE Act 2.0 creates additional planning opportunities that you might want and they’ll explain why. 

If you haven’t had the chance to look through this new legislation, make sure to listen in to find out more about what’s changing for required minimum distributions, qualified charitable distributions, catch-up contributions, and more. We can’t cover everything in this episode, but this should give you a great starting point for the next conversation with your advisor.

Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/

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Timestamps (show notes):

3:12 – The required minimum distribution age is moving back again.  

7:54 – Catch-up provisions and inflation adjustments

11:04 – An extended RMD credit for qualified accounts

15:45 – Changes to qualified charitable distributions

21:22 – A new exception to the penalty for tax on qualified plan distribution  

25:17 – Qualifying for a hardship distribution in retirement accounts

Believe it or not, the IRS wants you to save for retirement. To that end, they’re always trying to come up with new tax breaks—not to mention very specific conditions you need to meet in order to enjoy those tax breaks!

This brings us to the topic of today’s conversation: the introduction of Secure Act 2.0, a new law ushering in changes to rules and parameters related to retirement accounts.

Listen in as Stephanie and Kevin discuss the highlights of this Secure Act 2.0, offering insights on how you can continue saving for your dream retirement in light of this new law!

Key Topics:

• How the government incentivizes you to put money away for your future (1:58)
• About Secure Act 2.0 (3:21)
• An increase in access to Roth accounts (4:20)
• Required minimum distributions around retirement plans (6:52)
• Inherited/beneficiary IRAs (11:15)
• Secure Act 2.0 and RMD penalties (14:51)
• Catch-up contributions (20:16)
• 529 plans (college savings plans) and Roth IRAs (26:50)
• Questions to ask yourself to make better savings/investment-related decisions (31:45)

Resources:

• Take Back Retirement ep. 27: Health Savings Accounts (HSA’s): What Women Need to Know
• The 10 Most Important Things Secure 2.0 Will Do for Your Retirement, in Plain English (article)
• Ed Slott: Pay Attention! Secure 2.0 Dates Are ‘All Over the Place’ (Article)

If you like what you’ve been hearing, we invite you to subscribe on your favorite platform and leave us a review. Tell us what you love about this episode! Or better yet, tell us what you want to hear more of in the future. stephanie@sofiafinancial.com

You can find the transcript and more information about this episode at www.takebackretirement.com.

Follow Stephanie on Twitter, Facebook, YouTube and LinkedIn. 

Follow Kevin on Twitter, Facebook, YouTube and LinkedIn.

Thinking about taxes isn’t the most fun thing in the world, and most people like to put off all thoughts of it until February or later. In this episode, Steven and Ben weigh in on why they think it’s so important to do your tax planning before the end of the year. Listen in to get the scoop on how you can make the best decisions for your money and goals well before the new year.

You can find all show notes for this episode at: https://bit.ly/3U06oHa 

Inherited IRAs can be a great way to continue to build wealth. Tune in to learn the IRS distribution rules in order to minimize taxes on your distributions and take advantage of tax deferred growth.

Notes:

In this episode, Luis talks about the following and more:

• Required Minimum Distributions
• Spouse vs Non-Spouse IRS rules
• IRAs with Multiple Beneficiaries
• The benefits of disclaiming all or part of the inherited assets

Resources:

• Download the 3 Fundamental “Money Moves” to Make Before Turning 45
• LatinXcellence, more than a brand, it’s a movement!
• Luis’ LinkedIn
• Luis’ Twitter
• Luis’ IG

Required Minimum Distributions (RMDs) are extremely important to retirement tax because it helps dictate how much retirement tax we pay. Unfortunately, this is one of the easiest things to ignore so Ben and Steven will be sharing insight into how to navigate RMDs. They also discuss some of the changes that have been happening over the last couple of years and how they will affect your taxes.

You can find all show notes for this episode at: https://bit.ly/3slVvE5

In episode 33, Stephanie and Kevin gave us a broad overview of the estate and gift tax system. Now that we’ve reached the tail-end of tax season, our hosts sit down to do a timely deep dive on what women need to know about income tax—a subject that, unfortunately, isn’t as simple as all of us would love to believe it is.

While state taxes are obviously important to consider when planning out your strategy, in this conversation, Stephanie and Kevin focus primarily on federal income taxes since these are the rates we’re all faced with year after year.

Today’s discussion centers around how the federal government aims to incentivize certain behaviors from citizens via the tax code, and how our tax bracket dictates the types of choices we need to consider when it comes to all of our major financial decisions.

Key Topics:

• “How do taxes and financial planning come together?” (2:44)
• Our ever-changing federal tax rates (6:31)
• Why being at the 32% tax bracket doesn’t actually mean you have to pay 32% of your income in taxes (12:38)
• “What the heck is a ‘deduction’?” (16:13)
• How your tax rate impacts what you can do with your retirement savings vehicles (20:50)
• Required minimum distributions (26:56)
• The pitfalls of planning too well (29:55)
• What happens to your wealth when you pass away, depending on your tax bracket (34:05)
• Why a health savings account (HSA) is the perfect savings vehicle (35:31)

Resources:

• State Income Tax Rates
• Federal Income Tax Brackets
• Take Back Retirement Episode 33: What Women Need to Know about the Estate and Gift Tax System
• Take Back Retirement Episode 12: What Women Need to Know About IRA’s, With Sarah Brenner
• Take Back Retirement Episode 20: Women + Roth IRA’s – What Should You Be Aware Of?
• Take Back Retirement Episode 22: Why You Spend The Way That You Do With Maggie Klokkenga
• Take Back Retirement Episode 27: Health Savings Accounts (HSA’s): What Women Need to Know
• Take Back Retirement Episode 29: How Much Cash Should I Have and Where Should I Be Putting It?

If you like what you’ve been hearing, we invite you to subscribe on your favorite platform and leave us a review. Tell us what you love about this episode! Or better yet, tell us what you want to hear more of in the future. stephanie@sofiafinancial.com 

You can find the transcript and more information about this episode at www.takebackretirement.com.

Follow Stephanie on Twitter, Facebook, YouTube and LinkedIn. 

Follow Kevin on Twitter, Facebook, YouTube and LinkedIn.

Sometimes we get so caught up on end-of-the-year stuff that things can easily be missed or slip by us if we’re not careful. Tammy and Micah thought through what some of these things might be and came up with a list that will help you plan ahead when it comes to the TSP in particular. Instead of focusing on distribution rules, they’ll be talking about how you can really focus on figuring out the best time to do some of these things.

You can find all show notes for this episode at: https://plan-your-federal-retirement.com/43

April 15th is not the only important date to keep in mind when it comes to taxes. Although the calendar year has come to an end, there are planning opportunities you can still take advantage of now that 2021 is over. So, today, Ben and Steven share what areas can be reached into and still have some influence on your tax consequence.

You can find all show notes for this episode at: https://bit.ly/3GXwC6r

Social Security is something we see taken out of each paycheck, but what does that mean exactly? And, will there be any money left in the Social Security coffer when you’re ready to retire? For many, the benefits, and when to take them, can be confusing. On this episode, we invite Joe Hendrix, of Mariner Wealth Advisors, to simplify this topic for us and offer considerations on your personal plan.

In this show Jason explores why asset allocation is so important especially in the drawdown phase of investing.

Professor Jamie Hopkins (Carson Wealth & Heider School of Business/Creighton University) talks about impacts the SECURE Act could have on retirement planning - particularly the end of the stretch IRA provision, which allows inherited individual retirement accounts to remain tax-deferred. Plus, how to reduce taxes when you have significant capital gains, when you can take tax-free and penalty-free 457 distributions, and whether or not to max out your 401(k). Transcript & show notes: http://bit.ly/YMYW-224

Age matters when you are managing your 401K. There are several important ages that you need to be aware of. The 401K brothers take us through the important dates of our plans and discuss catch-ups, social security and distributions.

Show Notes:

• :30 - 21 years of age is what most plans to put as the entry age.
• 1:22 - Age of 50 is important because at 50 you are able to do the catch- up provision in your 401K plan. This means you can start contributing more money to your plan.
• 2:42 - 66 and 67 are important because this is typically the age of most folks who hasn't´´ retired yet hit the full social security retirement age.
• 3:57 - Sit down and do an analysis to see if you are really getting the best benefit of social security. If you wait until this age, you will get the full benefit without tax implications.
• 4:54 - 59 ½ is the first age you can take from any retirement account without paying the 10% penalty.
• 5:57 - 70 ½ is the age you have to start taking out of the retirement plans. It is the required minimum distribution amount. If you are still working and you aren't a 5% owner of a plan, you are not required to take it at that time.
• 7:18 - There is a lot of information to understand to do the distribution of those plans.
• 7:56 - No matter what age you are at, check your account.

3 Key Points:

1. There are many important ages to know when managing your 401k account.
2. While the age you enter into a plan can be around 21 years, there are many other important ages as you progress through life.
3. It is important to know these ages so you can plan your retirement distributions.

Tweetable Quotes:

-       “No matter what age you are at, check your account.” –Bill.

-       “Look at all the little habits of how you save and spend your money. It will let you know how long your money will last in retirement” –Bill.

-       “The year you turn 50 you are able to do the catch-up provision in your 401K plan. ”  –Bill.

Resources Mentioned:

• Inside the Plan- Discover more about the Podcast
• Horizon Financial Group

• Contact Information:
  • bbush@horizonfg.com
  • Abush@horizonfg.com