Inflation and Taxes Could Rise. Are You Ready for Retirement?

Falls Are Rising Among Older Adults. Heres How to Lower Your Risk at HomeAccidental fall deaths in the U.S. have roughly tripled since 2000, according to CDC data analyzed by USAFacts. For adults 65 and older, falls are now the leading cause of both fatal and non-fatal injury, and the increase shows up in every older age group.Several factors seem to be adding up: more prescription medication use, more drinking among older adults, and higher obesity rates. Fear of falling plays a part too. People who worry about falling often move less, and over time that can weaken strength and balance. Know your riskCommon risk factors include limited mobility, chronic conditions such as diabetes or arthritis, certain medications, changes in vision or hearing, and home hazards. The National Council on Agings free Falls CheckUp is a quick way to see where you stand. Build everyday habitsWear glasses and hearing aids as prescribed and keep up with regular eye and hearing exams.Review your medications with your doctor or pharmacist.Use a sturdy step stool, not a chair, to reach high places.Take your time, especially when standing up or changing direction. Make your home work for youFor stairs and steps, a stairlift, wheelchair ramp, home elevator or platform lift can make it easier to move between levels.Install grab bars and consider a shower seat or an accessible walk-in shower.Clear clutter, secure or remove loose rugs, and keep cords out of walkways.Add brighter lighting and nightlights. A few small changes can help you stay active and comfortable at home. Adapted from Deaths from Falls Are Rising. How Can You Reduce Your Fall Risk at Home? by Lifeway Mobility.Contact Person: Eric Rubel | Marketing [email protected]:  847.403.0132

Social Security and the New Senior Tax DeductionBy Senior Tax Advisory GroupTax law changes may help retirees keep more of their income. However, headlines about no tax on Social Security can create confusion. We want seniors to understand what has changed and how the new rules fit their retirement plans.The One Big Beautiful Bill Act created a temporary additional deduction for people age 65 and older. For tax years 2025 through 2028, eligible individuals may deduct up to $6,000. Married couples filing jointly may deduct up to $12,000 when both spouses qualify. There could be a ROTH conversion opportunity at No Additional Tax Cost!This deduction is available whether you itemize or take the standard deduction. Married taxpayers must file jointly to claim it, and each person claiming the deduction must have a qualifying Social Security number.Income limits matter. The deduction begins phasing out when Modified Adjusted Gross Income exceeds $75,000 for an individual or $150,000 for a married couple filing jointly. Taxable IRA withdrawals, capital gains, or Roth conversions may reduce the deduction available.The law did not repeal federal taxation of Social Security benefits. Depending on your combined income, up to 85% of benefits may still be included in taxable income. The new deduction reduces taxable income; it does not change the formula determining how much Social Security is taxable. Eligibility also does not require receiving Social Security.For example, a qualifying couple with both spouses age 65 or older could receive the full $12,000 deduction. If that entire deduction offsets income otherwise taxed at 12%, their federal tax savings would be $1,440. Actual savings depend on their tax situation.Before making withdrawals or changing withholding, review your income and eligibility. Social Security claiming decisions still deserve coordination with taxes, savings, and survivor needs. We believe retirement planning begins with understanding people. Contact Senior Tax Advisory Group at 719-596-4844 or visit www.springstax.com for help evaluating these changes within your retirement plan.

Required Minimum Distributions Explained: What Seniors Need to Know Each YearIf you have a traditional IRA, 401(k), or similar tax-deferred retirement account, the IRS eventually requires you to start withdrawing money from it whether you need the cash or not. These withdrawals are called Required Minimum Distributions, or RMDs, and getting them wrong can be costly. Here's what to know.What Is an RMD?An RMD is the minimum amount you're required to withdraw each year from certain retirement accounts once you reach a specific age. The rule exists because these accounts let your money grow tax-deferred for decades the IRS eventually wants its share, so it requires withdrawals (which are taxed as ordinary income) to begin at a set point.RMDs generally apply to: Traditional IRAs SEP and SIMPLE IRAs 401(k), 403(b), and most other employer-sponsored retirement plans RMDs do not apply to Roth IRAs during the original owner's lifetime, and as of 2024, Roth 401(k) and Roth 403(b) accounts no longer require RMDs either.What Age Do RMDs Start?The starting age has changed more than once in recent years under the SECURE Act and SECURE 2.0, so its worth checking which rule applies to you based on your birth year: Born 1950 or earlier: RMD age is 73 Born 19511959: RMD age is 73 Born 1960 or later: RMD age is 75 Because the rules phased in over several years, it's easy to be working from outdated information especially if you read something a few years ago. When in doubt, confirm your specific required beginning age rather than assuming.The First-Year Deadline Is a Little DifferentYour very first RMD comes with a special option: you can delay it until April 1 of the year after you reach your RMD age, rather than taking it by December 31 of the year you turn that age.The catch: if you delay that first withdrawal, you'll need to take two RMDs in that same calendar year the delayed one and the current year's which can push you into a higher tax bracket. For many people, taking the first RMD by December 31 of the year they reach RMD age, rather than waiting, actually results in a smoother tax picture.After your first RMD, all future ones are due by December 31 each year.How Is Your RMD Calculated?Your RMD is based on your account balance as of December 31 of the prior year, divided by a life expectancy factor from an IRS table (most people use the Uniform Lifetime Table). The result is your required withdrawal for the year. If you have multiple IRAs, you calculate the RMD for each one separately but can withdraw the total from any single IRA or combination of them. 401(k) accounts generally don't allow that same flexibility each 401(k) typically requires its own withdrawal.What Happens If You Miss One?Missing an RMD, or withdrawing less than required, comes with a real penalty: a 25% excise tax on the amount you should have withdrawn but didn't. That penalty can be reduced to 10% if the mistake is corrected within two years. Given how steep the penalty is, it's worth building a reliable system or working with someone who tracks it for you rather than relying on memory alone.A Strategy Worth Knowing: Qualified Charitable DistributionsIf you're charitably inclined, a Qualified Charitable Distribution (QCD) lets you transfer funds directly from your IRA to a qualifying charity. That amount can satisfy some or all of your RMD for the year without counting as taxable income which can help keep your adjusted gross income lower, potentially reducing how much of your Social Security is taxed and help avoid higher Medicare premium brackets. This is generally available starting at age 70, even though it's tied to satisfying RMDs that begin later.Why This Deserves Yearly AttentionRMDs aren't a "set it and forget it" task. Your required amount changes every year as your balance and life expectancy factors change, and a distribution can ripple into other parts of your tax return affecting how much of your Social Security is taxable, your Medicare premium bracket, and your overall tax bill. Reviewing your RMD strategy annually, rather than treating it as a single calculation, often uncovers opportunities to plan more efficiently.Want help calculating your RMD or building it into your broader tax strategy? Contact Zunic Advisory Services we're happy to walk through where you stand.