Targeted scams have become even more popular with the amount of personal information readily available on the internet. Social Security recipients are, unfortunately, targeted by some of the most sophisticated scam artists out there. From phone scams to phishing attempts and intercepted deposits, here are three common Social Security scams and how you might avoid being fooled by them. Phony Phone Calls Generally, the Social Security Administration (SSA) communicates with you over the phone only if you request a call. You are unlikely to get a call from the SSA at random. Be immediately suspicious of anyone who calls you and claims to have information about your Social Security benefits. Moreover, the SSA will never require you to make payments with a gift card, wire transfer, prepaid debit card, cryptocurrency or by mailing cash. Scam artists love receiving these payments because they are more difficult to trace. Money sent in these ways may be almost impossible for you to recover. Phishing Emails or Texts Scam artists use a technique called phishing. A phishing attempt may send you a text or email message that appears to come from the SSA and coerces you into providing personal information. Once you provide some personal information or click on an unsafe link, the phishers may gain access to your bank accounts, email or social media accounts. Gaining access to social media accounts, in particular, may allow the phisher to lock down these accounts and demand a ransom in return for unlocking them. Direct Mail Fraud Although most Social Security scams have moved online, direct mail scams continue in some areas. These scams involve letters or pamphlets sent to Social Security recipients, offering an extra monthly check or an increase in their Social Security benefits in exchange for personal information that might allow the scammer to access the victim's credit and bank accounts. Avoiding Scams There are a few tips to follow that may help you avoid a scam. Please inform any potentially vulnerable older friends and family members about these scams.

• If you receive a call, text or email from someone you do not know, whether or not they claim to be from the SSA, do not answer or return it. If you do not realize there is an unknown caller on the phone until after you have answered the call, hang up instead of engaging.
• Do not give out personal information in any phone, email, or text interaction in which you were not the one to initiate the communication.
• If someone making a scam attempt contacts you, report the scam to the U.S. Office of the Inspector General using the online form¹.
• Do not feel pressured into making a large transaction or financial decision immediately. If the person you speak to claims that an opportunity will not be available the next day, they may be using a false sense of urgency to pressure you into doing something you would avoid if you had more time to contemplate. The scam artist knows that the longer you put off a transaction, the less likely you might be to do it.

¹ oig.ssa.gov   Important Disclosures This material is for general information only and is not intended to provide specific advice or recommendations for any individual. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05244868  

Increasing your financial literacy may allow you to make better decisions about your money and your financial future. Many great resources are available to get you started on the path to financial literacy and to expand your current knowledge. Here are five tools to consider.  

1. Financial Guide Books

There is a wide variety of financial books published. That means that no matter your income level, current financial situation, or future financial goals, you might find a book to address your needs. For many people, books are an excellent resource option as you learn the information at your own pace and at a convenient time. Start by determining a topic you want to focus on and then narrow down your search to books that engage you and are easy to understand.¹  

2. Financial Magazine Subscriptions

Magazine subscriptions are the perfect way to stay up-to-date on the latest financial insights, tips, and news. Also, receiving your magazine every month might prompt you to take the time to give your finances the once over and see what needs to be improved and what information you still need to learn.¹  

3. Local Community Events

Explore some of the local and virtual financial events available in your area. Check with your local libraries or financial professionals to determine when events and seminars may occur. These events may provide you with valuable information and might have a question-and-answer session where you may ask specific financial questions.²  

4. Financial Podcasts

Listening to a podcast may help you improve your financial literacy without wasting your free time if you have a long commute or enjoy jogging or walking. Podcasts provide information that is easy to consume and retain. Some podcasts offer great tips and tricks for getting your financial house in order and may provide valuable advice about your financial questions.¹  

5. Financial Newsletters

Why not have the information you are looking for delivered directly to your inbox? Many websites dedicated to improving financial literacy offer email newsletter subscriptions or free eBooks to provide the necessary information to work toward your specific financial goals. Find a reputable website and opt-in to receive news and tips from them, watch free videos, or download ebooks.² If you want to improve your financial outlook or better plan for your financial future, then improving your financial literacy is crucial. Whether you are just starting to learn about finances or need more information on different investing types, a range of tools is available to help get you the information you need. Check out some of these tips above and a financial professional to get the information you need to start on the path to a brighter financial future. Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05359965   Footnotes ¹ Best Resources for Improving Financial Literacy https://www.investopedia.com/best-resources-for-improving-financial-literacy-5091689 ² Tools and resources to use with the people you serve https://www.consumerfinance.gov/consumer-tools/educator-tools/adult-financial-education/tools-and-resources/  

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 your asset allocation appropriately reflect your risk tolerance and investment timeline? It can be tough to know.   Fortunately, you don't have to do it alone. A financial professional can work with you on your strategies and goals, making adjustments where necessary to keep you on the right path. Don't wait until you get closer to retirement to realize you haven't been investing as efficiently as you would have liked.  

Check Your Beneficiaries

One last thing that is important to keep an eye on involves the disposition of your assets once you've passed away.   Many financial accounts like 401(k)s, IRAs, and even some bank accounts may require you to name a beneficiary. And for life insurance policies, the beneficiary is key—this is the person to whom the benefits pass, regardless what a marriage decree or executed will may say to the contrary.   If you've gotten married or divorced, had children recently, or if it's been more than a year since you evaluated your beneficiary designations, it's important to revisit each of your financial accounts to ensure your beneficiary designations continue to reflect your wishes. In many cases, a surviving family member has discovered too late that their loved one named an ex-spouse or estranged family member as their beneficiary, leaving those who depend on them in the lurch.     Important Disclosures:   The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.   Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.   The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.   An investment in the Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.  Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.   Asset allocation does not ensure a profit or protect against a loss.   This article was prepared by WriterAccess.   LPL Tracking # 1-05355828.

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 sold. Over the years, your net worth will fluctuate. The immediate increases and decreases are less significant than the trend that develops over time. It is the trend that you want to learn how to expose and observe. As you grow older and earn more income from work and investments, build equity in your home, increase your assets and pay down your debt, your net worth can potentially grow, but it requires discipline, budgeting, and planning. It is never too early to get the guidance you need from an experienced financial professional. The following tips may help you take your first steps toward addressing your financial goals and needs: • Pay down debt • Spend carefully • Sell unused or unwanted assets • Recover outstanding payments • Save and invest wisely • Work with a financial professional to develop a financial strategy. • Monitor your progress regularly. Part of knowing what you are worth today is being able to build a customized financial strategy that works for your goals at your level of risk. A financial professional can help you make smart decisions by thoroughly understanding your financial situation. Consult a financial professional today. Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by LPL Financial Marketing Solutions. LPL Tracking #1-05337832

Planning for retirement is exciting, but it may come with a bit of stress. If you worked hard all your life, now might be the time to relax and enjoy the fruits of your labor. One of the things that you may need to consider is when it is time to begin claiming your Social Security benefits. If you are unsure when to start your claim, here are a few questions that may help you determine if it is time to make a claim or if you should delay a little longer.  

1. When Are You Considered Full Retirement Age?

The first question to ask is what is considered your full retirement age. Once you are at your full retirement age, you are entitled to your full monthly Social Security benefit. The full retirement age depends on the year you were born. Those born in 1958 are at full retirement age at 66 and eight months. Those born in 1959 are at full retirement age at 66 and 10 months. Those born after 1960 come to full retirement age at 67.2 years old.  

2. How Much Money Do You Have in Your Retirement Savings?

You will want to consider the monthly income you get from your retirement savings. Determine how much annual income you need for your monthly obligations. Then see how much money you need to withdraw from your savings each year. If there is a shortfall, you may want to claim your Social Security when you are eligible. If you have enough annual income from savings for your needs, you may want to wait on your claim to get a higher monthly benefit.¹  

3. Are You Dealing With Any Major Health Issues?

While delaying your Social Security payments may result in a larger monthly benefit, the payouts end up being the same overall amount in total. Social Security payment calculations use the average life span, and the amount is divided by how many years you are likely to claim the benefits. Certain major health conditions may result in a lessened life span. If this is the case, making an early claim may be the better option if you feel you might not claim your benefits for the full average life span. If you are in good health and do not have any conditions that are likely to result in a shorter life span than average, you may choose to wait if you have enough money to sustain yourself until a later age.¹ Navigating retirement may seem a little daunting as you decide how to sustain yourself comfortably in your later years. While one of your significant decisions is determining when to start claiming Social Security, by answering the few questions above, you may be in a better position to come to the decision that may work for you.   Important Disclosures:   The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05359964.   Footnotes ¹ If You Can't Answer These 3 Questions, You're Not Ready for Social Security https://lacrossetribune.com/business/investment/personal-finance/if-you-cant-answer-these-3-questions-youre-not-ready-for-social-security/article_e5ef230a-6fc2-5bd0-9c2e-e4eea386561d.html ² Your Social Security Statement, SSA.gov, https://www.ssa.gov/myaccount/assets/materials/SSA-7005-SM-SI%20Wanda%20Worker%20Near%20retirement.pdf  

Regardless of whether you prepare your taxes yourself or use a professional's services, it's a good idea to gather the information and documentation you need well in advance of your actual tax filing date. Below, we've listed some key information you need when preparing this year's taxes.

Your Personal Information

The personal information you may need to file taxes may contain information from your prior year's return, including:

• Your Social Security Number (SSN), along with SSNs for your spouse, if applicable, and any dependents
• Last year's Adjusted Gross Income (AGI) if you're e-filing your taxes and need to confirm your identity
• Any tax filing PIN you may have.

Your Income Information

Your tax return typically requires documentation for all the taxable income you received the previous year.

• W-2 forms
• 1099 forms
  • 1099-MISC for contract employees
  • 1099-K for those who receive payment through a third-party provider like Venmo or Paypal
  • 1099-DIV for investment dividends
  • 1099-INT for investment interest
  • 1099-B for transactions handled by brokers
• Receipts, pay stubs, or any other documentation on income that isn't otherwise reflected.

Your Deduction Information

Next, gather information on deductions that help reduce your overall tax burden. These include, but aren't necessarily limited to:

• IRA and other retirement contributions
• Medical bills
• Property taxes
• Mortgage interest
• Educational expenses like college tuition or student loan payments
• State and local income taxes or sales taxes
• Charitable donations
• Dependent care expenses
• Classroom expenses (for teachers)

There are other state-specific deductions that may apply to your situation.

Your Tax Credit Information

Credits may further decrease your tax burden. Unlike deductions, which may lower your taxable income, tax credits simply credit you a portion of what you'd otherwise owe. Some available tax credits may include:

• Earned Income Tax Credit
• Child Tax Credits
• Dependent Care
• American Opportunity and Lifetime Learning Tax Credits
• The Saver's Credit

Often, the information needed to receive these tax credits may be duplicative of other tax information. For example, having your retirement contribution records handy may support both an IRA deduction and the Saver's Credit (if you qualify). Having your child's SSN may allow you to fill out the Child Tax Credit section and the dependent care deduction. The more income- and deduction-related information you have in one spot, the more streamlined your tax prep process should be.

Your Tax Payment Information

Finally, gather and provide information on how much you've already paid in taxes, whether through estimated tax payments, income withholdings, or both. This helps you quickly calculate your total amount due once you've entered your income, deduction, credit, and withholding information.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking # 1-05206790     Source: https://www.nerdwallet.com/article/taxes/tax-deductions-tax-breaks

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 going out. There are monthly bills, food, gas, entertainment, childcare, and more.   STEP 2: Recognize How Rising Inflation and Interest Rates Will Affect You The inflation rate has not been this high in nearly half a century. Interest rates are also rising. Because the cost of living is noticeably going up, there are a few things you can do to soften the burden on your wallet. Understanding your daily, weekly, and monthly spending habits and sticking to a budget may help you better manage your financial situation while you adjust to current inflation and interest rates. According to a survey by The Penny Hoarder, over 55 percent of Americans do not use a budget to manage their income, and 56 percent of respondents said they didn’t know how much money they spent last month. [i]That is a big difference. Here are a few tricks to help you manage your money and your spending habits:  

• Review your account statements and list the amount of money coming in.
• List the weekly and monthly expenses, including groceries, gas, entertainment, debts owed, and bills. Money can seemingly disappear if you are not taking account of your expenses, if you are not spending wisely, or if you are spending more than you are earning.
• If extra money is in your bank account, consider saving and investing it.
• In today’s technologically advanced world, there are even “apps” available that can be uploaded to help you monitor your spending and offer budgeting tips.
• Work on eliminating unnecessary expenses. Be honest with yourself about where the money is going.
• Consult with a financial professional to help you develop a financial plan that is appropriate for you and your specific situation.

  STEP 3: Consider Investing Investing is a way of taking money that you have saved and potentially growing your wealth over time. It is essential to understand the value of careful and knowledgeable investing instead of keeping your cash locked up solely in bank accounts that typically generate minimal returns and is tempting to spend. The real benefit of investing is the preservation and growth of your wealth. There are a few ways that you can invest. Having a diversified portfolio, especially in an unpredictable market, is wise in case one segment of the market falls harder than other industries. A few ways to invest include:  

• Stocks – Buying stock is having ownership in a company. When you purchase, say, five shares of Amazon stock, you have now become a partial owner of Amazon, and if they do well and the stock increases, meaning it is worth more than when you bought it, and you sell it, you just made money which is called capital gains (though it is recommended to hold stocks with the intention of being a long-term investment. Day trading, buying and selling, hoping stocks go up and selling for small profits is extremely risky!). There are a variety of different stocks that you can buy including common, preferred, domestic, international, penny, and more. [ii]

 

• Mutual Funds – A mutual fund is an investment company that pools the money of many investors together and invests the money in different assets, including stocks, bonds, real estate, and more. Each mutual fund consists of multiple companies. As an investor, you buy shares in the mutual fund, meaning that you are buying ownership in multiple companies compared to a stock that is one company. This type of investment generates income in two ways; one of them is through capital gains which, again, means that the value (the price) of the shares increases compared to the price you bought them. If you sell it when it is higher than when you purchased it, you make money. The second way is through dividends. Dividends are distributions of a company’s earnings to its shareholders. [iii]

 

• Retirement Accounts – These are savings accounts with tax advantages that focus on long-term investing and saving. They can be either through your place of employment or personal. A few types include 401(k), Roth IRA, Traditional IRA, SEP IRA, Simple IRA and Simple 401(k), a Solo 401(k), and more. [iv]

 

• Other Ways to Invest – Bonds, Education Accounts, Exchange-Traded Funds, Custodial Accounts, Real Estate, and more.

  STEP 4: Saving Enough Money for Emergencies in a Volatile Market There is always the possibility of an unexpected financial emergency, whether a medical bill, car issue, income loss, or other unforeseen challenges. Setting up an emergency fund is essential to prepare yourself for financial obstacles. The general rule of thumb is to keep enough money in your savings account to cover three to six months’ expenses. [v]   STEP 5: Pay Down Your Debt If you live an average life, it seems that accumulating some debt, whether a home mortgage, a car, or a personal loan, is just part of the equation. Some days it might seem like trying to climb Mount Everest in flip-flops, but there are techniques you can try that might help you gradually get ahead of the debt. These techniques include:  

• Debt Avalanche Method
  • You make the minimum payment on each account where you owe money but pay as much as possible to the one with the highest interest rate until it gets paid off. Then you apply this method with the second highest interest rate, and so on.

 

• Debt Snowball Method –
  • You pay off the smallest balance first and then work up to the largest.

    STEP 6: Keep Track of Your Credit Score A solid credit score is essential in pursuing your financial goals. Many people do not regularly monitor their credit or even know what their current credit score is, but making regular payments on accounts you owe has the potential to impact it tremendously. If possible, you want to try and pay off any credit card or personal loan balances in full. Stay on top of it, even if you cannot pay in full at this moment in time.   STEP 7: Work With a Financial Professional Trying to manage your finances and complete everything involved on your own can potentially be overwhelming. The hassle of collecting and organizing your financial information can be a nightmare by itself. Having an experienced financial professional in your corner may help you navigate the complexities of financial planning and you can work together to mitigate mistakes that could cost you in the long term. Take the time to research and consult with a financial professional so you can start planning today for you and your family’s future.   [i] These Budgeting Statistics Show Most of Us Don’t Track Our Spending (thepennyhoarder.com) [ii] Types of Stocks: Understanding the Different Categories (fool.com) [iii] Mutual Funds and ETFs (sec.gov) [iv] Types of Retirement Plans | Internal Revenue Service (irs.gov) [v] An essential guide to building an emergency fund | Consumer Financial Protection Bureau (consumerfinance.gov)         Important Disclosures   The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.   Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.   Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.   Investing in mutual funds involves risk, including possible loss of principal.  The funds value will fluctuate with market conditions and may not achieve its investment objective. Upon redemption, the value of fund shares may be worth more or less than their original cost.   Dividends payments are not guaranteed and may be reduced or eliminated at any time by the company. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.   Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.   All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.   This article was prepared by LPL Financial Marketing Solutions.   LPL Tracking #1-05335330

Could you be losing money because of simple monetary mistakes? Avoid these money-wasting habits in 2023 to have more cash when you need it—or save it for a rainy day.   Failing to budget Conventional wisdom says to follow the 50/30/20 rule, meaning you should put no more than 50 percent of your income toward necessities like food and housing, only use about 30 percent for arbitrary spending, and then reserve about 20 percent for savings. You won’t know whether you are meeting these goals, however, if you don’t create a detailed budget. Start by carefully noting what you spend each week for about a month, eliminating any unnecessary expenses. Then create a budget for yourself to ensure you’re sticking to these reductions. If you can decrease your regular spending, you may find that when the next new year arrives, you’ll have more funds for important things like retirement or a down payment on a house. Running up your credit cards A common mistake people make is using their credit card for extras like dinners out or shopping trips and then not paying it off right away, thus incurring extra interest charges. This year, try to avoid accruing excessive credit card debt by never charging more than what you can pay back right away. You should also check the balance on your credit card weekly to make sure it’s not getting to be more than you can handle. Not having an emergency fund There are times in life when things go wrong—like when you get a flat tire or your pipes spring a leak. Even a small emergency can result in a financial catastrophe if you don’t have money set aside for circumstances like these, as you may have to resort to using credit, which you’d then have to pay back with interest. To avoid this, aim to save at least a little money out of your paycheck weekly so you’ll have an emergency fund if something unexpected happens; you should build it up until it equals at least three months of your pay. Oversubscribing Do you subscribe to multiple media sources, such as cable TV, news, and streaming services? If you add up how much you’re paying in total for all your subscriptions, you may be surprised! Consider keeping just your favorites and canceling the rest. Also, check what you’re spending for other services that have recurring monthly fees, like your gym membership. If you aren’t using them consistently, consider dropping them as well. Paying for conveniences There’s an app for just about everything these days, but they can come at a cost. With just a few taps on your phone, you can order takeout, request a ride, and get your groceries delivered without even having to think about it. Though these apps can be big time-savers, the money you spend with them can cut into what you could otherwise put into savings or financial investments. Not paying into your 401(k) Many employers offer a 401(k) program in which they match a certain percentage of the monetary amount their employees put into their accounts. That’s a nice bonus! Many people skip this opportunity to save for their retirement simply because they don’t understand how a 401(k) works, so they unwittingly miss out on an additional thousands of dollars they could earn each year. Ouch! If you need more information about the plans your employer offers, schedule a meeting with a human resources representative at your workplace to get the details. Keeping up with the Joneses Society teaches us to think we must have the latest and greatest—whether that’s the most fashionable clothes, the fastest car, or the most luxurious home. But those outward trappings of success can come at big financial costs. If you could spend less on these items, such as by replacing furniture or personal belongings like furniture and other items less often or buying used, you could take the money you might have spent on these things and augment your savings. Then you could have enough funds for a dream purchase one day down the road.   This article was prepared by ReminderMedia. LPL Tracking #1-05359938

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 for 2024 or whichever is greater. The $10,000 amount will be indexed to inflation each year starting in 2026. For SIMPLE Plans, the contribution limit is $5,000 or 150 percent of the regular SIMPLE catch-up ($5,520 in 2023), whichever is greater. [i]   Currently, catch-up contributions to a 401(k) account for anyone 50 or older are $6,500 (2022), scheduled to rise to $7,500 in 2023. These amounts are in addition to regular 401(k) contribution limits: $20,500 (2022) and $22,500. [ii]   Enhancement of tax credits for small businesses starting and maintaining a retirement plan Employers with up to 50 employees will be eligible for a credit equal to 100 percent of the amount contributed by the employer, up to $1,000 per employee. The employer receives a credit equal to 100 percent for years one and two (this phases down over five years), 75 percent for year three, 50 percent for year four, and 25 percent for year five.   Small businesses with 51 to 100 employees are eligible for this tax credit for those above 50 employees and those earning less than $100,000 per year.   For up to 50 employees, the current three-year start-up credit is equal to 50 percent of plan expenses, and up to $5,000 cap is increased to 100 percent.   Changes to the required distribution age Currently, required minimum distributions amounts – that must be withdrawn annually according to the law – begin at age 72. However, with the clearing of the SECURE Act 2.0, this age is expected to rise to 73 in 2023 and then to age 75 in 2033. Along with a change in age, the penalty for failing to make a required minimum distribution is also subject to change beginning next year.   The penalty for failing to take an RMD will decrease to 25 percent of the RMD amount, from 50 percent currently, and 10 percent if corrected in a timely fashion. [iii]   Also, Roth accounts in 401(k) plans (different from Roth IRAs, which come with no RMDs during the owner’s lifetime) and other employer-sponsored plans will be exempt from RMDs starting in 2024. Additionally, beginning immediately, for in-plan annuity payments that exceed the participant’s RMD amount, the excess annuity payment can be applied to the following year’s RMD.   Matching contributions for student loan payments For some students, it is difficult to get into the routine of making student loan payments. However, a new provision in the SECURE Act 2.0 is aimed at encouraging younger workers to begin saving for retirement. Effective in 2024, employers will be permitted to make matching contributions under a 401(k), 402(b) or SIMPLE IRA plan based on a participant’s student loan repayments. Government employers would also be allowed to make matching contributions in a section 457(b) plan or another plan with respect to such repayments.   Required auto-enrollment and auto-escalation for most new plans Beginning in 2025, all new 401(k) and 403(b) plans will be required to include automatic enrollment for all eligible participants at a minimum of 3 percent and maximum of 10 percent of eligible compensation, and automatic escalation at one percentage point per year up to at least ten percent and a maximum of 15 percent.   Plans in existence before the date of enactment would be grandfathered and not subject to these requirements. There is also an exemption for government plans, church plans, and employers with 10 or fewer employees, and new businesses within the first three years of operation. Additionally, the bill does not require an employer to have a plan, but instead applies only to employers deciding to start a plan.   Building financial confidence through an emergency fund In life, most individuals have had that unexpected expense occur, forcing them to revise their monthly budget. If they did not have an emergency fund available because they found it difficult to save money and simply do not have that kind of liquid cash on hand, they may be tempted to dip into their retirement savings to cover the bills. Two changes within the retirement legislation can make it easier for employees to set aside emergency funds. One modification would allow retirement plan sponsors to automatically enroll employees to set aside up to $2,500 of post-tax money in a separate emergency savings alongside their retirement accounts. With this, workers could defer money to the emergency savings accounts automatically through their payroll deduction.   The other change would permit retirement plan participants to withdraw up to $1,000 from their retirement savings per calendar year to cover emergency expenses without being subject to any penalties. [iv]   The establishment of an emergency savings option within the context of a retirement plan is a progressive concept that can help employees become aware of the importance of setting aside savings for both short-term (emergencies) and long-term (retirement) needs.   Distribution of excess 529 assets to Roth IRAs Beginning in 2024, excess assets in a 529-qualified tuition program will be eligible for a tax-free distribution to a Roth IRA. Distribution is subject to the lesser of (a) the regular Roth IRA limits (without the income limits) or (b) the aggregate amount contributed to the 529 accounts over the previous five years (plus earnings). The beneficiary must be the same and maintained for at least 15 years. There is also a per-beneficiary lifetime limit of $35,000.   Permitting all employer contributions to be offered to employees on a Roth basis Effective immediately, employers can allow employees to elect for some or all of their vested matching and non-elective contributions to be treated as Roth contributions under a 401(k), 403(b), or governmental 457(b) plan.   Allowing SIMPLE and SEP contributions to be made on a Roth basis Effective for tax year 2024, SIMPLE and SEP contributions for employees and employers can be made on a Roth basis. The employee must elect for Roth treatment.   Self-Correction of Inadvertent Plan and IRA Violations without Submission to the IRS Effective immediately, all inadvertent plan violations may be self-corrected under the IRS’ Employee Plans Compliance Resolution System (EPCRS) without submission to the IRS. This does not apply if the IRS discovers the violation on an audit or if the self-correction is not completed within a reasonable period of time.   Benefits for part-time and low to middle-income workers Today’s workplace consists of a significant amount of part-time workers. Starting in 2025, part-time employees are required to work two consecutive years and complete at least 500 hours of service each year to be eligible to defer to their 401(k) plans. They will now be eligible to contribute to an employer-sponsored retirement plan. This is a modification of the SECURE Act’s three-years-of-service rule. Additionally, beginning in 2027, the SECURE Act 2.0 will revise the current Saver’s Credit. This credit provides millions of low and middle-income individuals with a “Saver’s Match,” which is a federal matching contribution deposited to a taxpayer’s IRA or retirement plan to encourage people to save for retirement. The change in the legislation alters the way you get the credit. Instead of having the credit applied against your tax liability when you file your tax return, the federal government will deposit a “matching contribution” directly into your retirement account. You get to pick which retirement account it goes into; however, a Roth account is not permitted, along with a few other stipulations. [v]   With so many new and modified provisions both immediately and soon-to-be available in the near future, it is encouraged that you consult a financial professional to help you navigate the legislation and see what may work for your retirement strategy and plans.   Important Disclosures: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.   The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.   All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.   This article was prepared by LPL Marketing Solutions   Footnotes: [i] Secure 2.0 Top 10 provisions (brandfolder.io) [ii] 401(k) limit increases to $22,500 for 2023, IRA limit rises to $6,500 | Internal Revenue Service (irs.gov) [iii] 5 RMD Changes Looming With Passage Of SECURE 2.0 Act (forbes.com) [iv] Emergency savings proposals in Secure 2.0 may boost financial security (cnbc.com) [v] Retirement Saver's Tax Credit Converted to "Saver's Match | Kiplinger   LPL Tracking # 1-05354651  

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 individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.