With the signing of the Omnibus Appropriations package into law, both employees and employers can take advantage of more than 90 new provisions aimed at creating opportunities to create or modify workplace retirement plans and strategies. What to know about the Secure Act 2.0 that may impact you and your financial and retirement goals? Read below for a helpful overview of important information to know about the SECURE Act 2.0.   Key Points Catch-up contribution changes Enhancement of tax credits for small business Changes to required minimum distributions (RMDs) Student loan payment matching Expansion of auto-enrollment Emergency plan modifications through a 401(k) plan Distribution of excess 529 assets to Roth IRAs Employer contributions to be offered to employees on a Roth basis SIMPLE and SEP contributions to be made on a Roth basis Self-correction and IRA violations without submission to the IRS Benefits for part-time and low to middle-income workers   Catch-up contribution increase and changes for earners over $145,000 Catch-up contributions allow you to put more money in your retirement savings accounts than the amount usually permitted for the year. This may enable people who have delayed saving or, for those who haven’t start yet, to “catch up” in pursuit of their retirement goals. There are two significant changes to the catch-up contributions. First, effective in 2024, all catch-up contributions for individuals earning more than $145,000 per year (indexed) must be made on a Roth, or after tax basis. This does not apply to SIMPLE plans.   Second, beginning Jan. 1, 2025, individuals ages 60-63 will be allowed to make catch-up contributions to their workplace plan of up to $10,000 or 150 percent of the standard catch-up contribution amount

Spring can be a fantastic time to refresh your retirement plan and savings habits. With 2023 bringing increased limits for 401(k)s, individual retirement accounts (IRAs), Health Savings Accounts (HSAs), and other tax-advantaged accounts, it’s worth taking a closer look at your retirement savings. Below, we discuss three ways to refresh your retirement plan this spring.   Maintain Consistent Savings With inflation taking a bite out of just about everyone’s paychecks, it can sometimes be tempting to decrease the amount you’re contributing to retirement just to gain a bit of breathing room. However, maintaining a consistent rate of savings even through lean times can go a long way toward securing your financial future. When it comes to saving for retirement, time is on your side—and the more you can contribute at a younger age, the more time this money will have to grow.   If your savings rate has been at the same level for more than a few years, it may be time to revisit this contribution. You may discover that you can afford to set aside a little more; in other cases, it may make sense to switch from a tax-deferred account to a post-tax account like a Roth 401(k) or Roth IRA.   Review Your Asset Allocation When it comes to investing for retirement through an employer plan, the options available to you may sometimes seem overwhelming. Far beyond mere “stocks vs. bonds,” employees are asked to choose from accounts ranging from growth to stability, domestic to international, and tech to blue chips. For some plans, the default option is to put contributions into a money market account rather than investing them in the stock market.   Does

When was the last time you gave yourself a financial checkup? As the saying goes, there’s no time like the present. This is especially true when it comes to reviewing the current state of your finances and figuring out what you need to do to get – or stay – on track so you can pursue your financial goals. To do this requires you to take into account a variety of factors. Setting aside time to understand your financial condition and conduct an honest assessment of where you stand is a great way to get started. Before you jump right in, consider these seven steps that you can take to assist you in evaluating where you stand financially and to help you determine a reasonable course of action to plan for the future.   STEP 1: Evaluate Your Net Income, Income Sources, and Review Your Spending Habits Do you know your net income? After all the benefits, social security, and taxes are deducted from your paycheck; you are left with your net income. This can be an eye-opener for some people. Say somebody gets hired at $60,000 per year. You will not be bringing $60,000 home. Hypothetically speaking, if you live in South Carolina, you pay federal income taxes, state income taxes, social security, and Medicare which amounts to over $14,200. That $60,000 just became a little more than $45,500. Don’t forget: you also have to consider how much you pay for health insurance, vision, dental, and possibly life insurance if you have it. Knowing your net income is important because you have to be aware of how much money you bring in (income source) and, conversely, how much is

During the months of March and April, we want to help you identify planning opportunities (and spot potential issues) with your tax returns. If we work together now, we can help identify… If there was a change in your finances last year and you are paying excess estimated taxes; Additional ways to reduce your tax liability for this year; and Planning opportunities to discuss with your tax preparer.   It is important to review your tax returns now because there is still time to address issues before next year (and you may have time to amend returns if needed). Reviewing tax returns can be daunting and difficult given the many state and federal complexities and often changing rules. Tracking your exposure to various taxes (e.g., ordinary income tax, capital gains tax, the alternative minimum tax, the net investment income tax, etc.), and your rights to various credits and deductions requires time and effort. To assist you in reviewing your filings, we have a checklist for retired taxpayers and one for taxpayers who are still working. Each checklist outlines nearly two dozen considerations to help guide you through your returns and circumstances. Download Our Checklist for Retirees Download Our Checklist for Someone Still Working   While the checklists can help you spot great ways to identify all the different opportunities to consider, we are always available to meet with you and discuss your finances and goals and to identify what the best opportunities are for you. Please contact us today to schedule a time to discuss this further.     The opinions voiced in article are for general information only and are not intended to provide specific advice or recommendations for any

It does not matter how much money you have today; you still must know the details of what you are worth. Understanding your financial situation can help you develop a retirement plan, pay down debt, draft a comprehensive estate plan and live with financial independence. To figure out your net worth, you should calculate the amount by which your assets (what you own) exceed your liabilities (what you owe). If your assets are greater than your liabilities, you have a positive net worth and vice versa. Doing this can provide you with valuable insight into what you can do to continue the plan toward financial confidence, or maybe it is an eye-opener to overspending. This knowledge may allow you to see where you can adjust toward more beneficial financial decision-making. What are assets? Assets include real estate, bank accounts, investment instruments, retirement funds, brokerage accounts, and personal items like your car, boat, airplane, jewelry, or other collectibles. Remember to include those intangible assets you might own, like patents, intellectual property, trademarks, etc. What are liabilities? Liabilities include mortgages, credit card debt, student loans, medical bills, personal loans, settlements against you in court, etc. This may also include money you might owe to someone or an organization. Because we have so many different assets of varying values, assigning accurate values to your assets can become difficult. It is essential not to inflate your net worth, thus making it more challenging to prepare a strategy that you will be able to follow. One way to determine the value of what you own is by comparing your assets to similar assets in your area that are for sale or that have been recently

Whether you’re just starting your career or are planning to retire this year, it’s never too soon or too late to start preparing for your retirement. What this entails may be different from person to person, but there are a few essential tips everyone should keep in mind when saving up for their eventual retirement. Start early Saving for retirement isn’t something that most of us can do overnight. It takes time to build up the necessary funds, so it’s best to start saving sooner rather than later. While you don’t necessarily have to start saving in your twenties, you should seriously start investing into your retirement funds in your thirties and forties. This will give you time to add to and subsequently grow your 401(k), IRA, Roth IRA, or other high-yield savings accounts. With that being said, it’s also never too late to start saving for retirement. You might just have to be more aggressive with your savings to build up a fund that can prepare you for your next steps into retirement. Save, save, save While there’s no one right number for how much you’ll need to save for retirement, it’s generally estimated that retirees need between 70 and 90 percent of their preretirement annual income, which will be a combination of savings and social security. To help you reach this goal, you’ll want to save around 15 percent of your gross annual income every year. There’s always some flexibility to this number, but there’s also no such thing as saving too much. If you work for a business that offers a 401(k) company match, try meeting at least the minimum requirements of that match. This is additional

Hopefully, you’re planning to give all of your loved ones plenty of affection this Valentine’s Day. But what if you weren’t around? To make sure everyone is fully protected when you’re gone, you need an estate plan. This year, show everyone you care by making sure your plan is fully updated. Check out these tips to do this task properly. 1. Ensure your children will be taken care of This part of your estate plan will change as your children get older. When they are young, you may need to take out life insurance and nominate a guardian for them. As they get older, you may want to set up a trust that distributes assets slowly to them. At some point, you may decide that your kids are mature enough so that you don’t need these provisions, even if you still want to make sure your assets go to them. 2. Make sure your estate plan reflects your current family Ideally, you should update your estate plan any time you have a major family event such as a marriage, divorce, birth, or death. However, often when these disruptive events happen, an already-completed estate plan is the last thing on your mind. This February, look over your estate plan and make sure that it includes – or leaves out – certain people. Keep in mind that in many cases, a will can define beneficiaries by relationship rather than a specific person’s name. For instance, you may have a will that stipulates all of your assets go to your children. It may automatically distribute assets to your grandchildren if a child passes away before you do. However, if you or your children

As the year has still just begun, probably the last thing on your mind is filing your taxes in spring. But if you start assembling the necessary documents and information now, you’ll experience less stress and be in a far better position come April. Luckily, tax day is a few days later than usual in 2023—since April 15 falls on a weekend, and the following Monday is a holiday, the deadline for filing this year’s taxes is April 18. So even if you don’t get a refund, you’ll at least have a later deadline! Gather your tax documents and information Preparation is the key to keeping any tax-filing stressors at bay, so you’ll want to check your inbox and mailbox regularly in the coming weeks. As employers are obligated to issue W-2s by January 31, you may be receiving important tax documents within a few weeks. Also be on the lookout for other important documents you’ll need for filing your taxes, such as 1099 forms reporting any investment income and 5498 forms noting contributions and rollovers to individual retirement accounts. If you expect to be receiving multiple tax documents, consider having a large envelope or basket that you can keep the documents in as they arrive in the mail and creating a system for storing the ones you receive digitally. This way nothing will get misplaced before you file your taxes. You will also need the social security numbers for yourself, your spouse, and any dependents, so make sure you know these or have them noted in a safe place. If you plan to use a preparer for your 2022 taxes, be aware that some will ask you to provide

During January and February, we like to help clients identify proactive ways to start the year off right and save more. Perhaps you… Received a bonus or a raise and need guidance on how to save or invest the additional cash; Have a tax refund coming to you; or Want to consider ways to save more this year.   Whatever the case, the beginning of the year is a great time to set your intentions and establish good habits to ensure you save for your financial goals. Identifying available savings opportunities and prioritizing across accounts can be complex and overwhelming. For example, do you know whether you are eligible for and taking full advantage of pre-tax health care savings accounts, such as HSAs and FSAs? Are you optimizing your retirement savings, choosing between traditional and Roth options, obtaining the total amount of any employer match, and maximizing your contributions? To help you spot ways to save more this year, we have a our Checklist: What Accounts Should I Consider If I Want to Save More? that outlines more than 15 strategies to consider when you have surplus cash or savings on hand.   Download Our Savings Checklist     While the checklist can help you identify different opportunities, we are always available to meet with you to discuss your finances and goals and determine what options best suit your unique circumstances. Don’t hesitate to contact us and schedule a time to discuss this further.     The opinions voiced in article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult

The beginning of the new year is the perfect time to discuss the various factors influencing your planning. For example, we can: Look at your progress toward your goals and consider any new goals you’ve set for yourself. Evaluate your insurance coverages to make sure your risks are minimized. Revisit your assets and debt and evaluate whether your risk tolerance continues to be appropriate. Take a look at the Checklist: What Issues Should I Consider At The Start Of The Year 2023 I’ve included for you. In addition to the ideas above, we can organize you for tax season, so you have a smooth experience. There are many reasons why having a good conversation now can set you up for success later.   Download Our Beginning of the Year Checklist   Sometimes the incremental changes that occur year-to-year may not seem like a big deal. In reality, though, they can add up. The planning that we’ve done together can evolve to benefit and strengthen the people and organizations that are important to you. If the checklist I’ve included has helped you identify topics we should plan for, please get in touch to schedule a time for us to discuss them further.