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You may
spend decades contributing to various retirement accounts. But for some accounts,
such as a traditional IRA and 401(k), you must start withdrawing funds at a
certain point. What should you know about this requirement?
To
begin with, the rules governing these withdrawals — technically called required
minimum distributions, or RMDs — have changed recently. For many years,
individuals had to begin taking their RMDs (which are based on the account
balance and the IRS’ life expectancy factor) when they turned 70½. The original
SECURE Act of 2019 raised this age to 72, and SECURE 2.0, passed in 2022,
raised it again, to 73. (If you turned 73 in 2023, and you were 72 in 2022 when
the RMD limit was still 72, you should have taken your first RMD for 2022 by
April 1 of this year. You will then need to take your 2023 RMD by Dec. 31. And
going forward, you’ll also need to take your RMDs by the end of every year.)
Not
all retirement accounts are subject to RMDs. They aren’t required for a Roth
IRA, and, starting in 2024, won’t be required for a Roth 401(k) or 403(b) plan.
But if your account does call for RMDs, you do need to take them, because if you
don’t, you could face tax penalties. Previously, this penalty was 50% of the amount
you were supposed to have taken, but SECURE 2.0 reduced it to 25%.
When
you take your RMDs, you need to be aware of a key issue: taxes. RMDs are
taxed as ordinary income, and, as such, they could potentially bump you into a
higher tax bracket and possibly even increase your Medicare premiums, which are
determined by your modified adjusted gross income. Are there any ways you could
possibly reduce an RMD-related tax hike?
You
might have some options. Here are two to consider:
•
Convert tax-deferred accounts to Roth IRA. You could convert
some, or maybe all, of your tax-deferred retirement accounts to a Roth IRA. By
doing so, you could lower your RMDs in the future — while adding funds to an
account you’re never required to touch. So, if you don’t really need all the
money to live on, you could include the remainder of the Roth IRA in your
estate plans, providing an initially tax-free inheritance to your loved ones. However,
converting a tax-deferred account to a Roth IRA will generate taxes in the year
of conversion, so you’d need the money available to pay this tax bill.
•
Donate RMDs to charity. In what’s known as a qualified charitable
distribution, you can move up to $100,000 of your RMDs directly from a
traditional IRA to a qualified charity, avoiding the taxes that might otherwise
result if you took the RMDs yourself. After 2023, the $100,000 limit will be
indexed to inflation.
Of
course, before you start either a Roth IRA conversion or a qualified charitable
distribution, you will need to consult with your tax advisor, as both these
moves have issues you must consider and may not be appropriate for your situation.
But
it’s always a good idea to know as much as you can about the various aspects of
RMDs — they could play a big part in your retirement income strategy.
Chad
Choate III, AAMS
828 3rd Avenue West
Bradenton, FL 34205
941-462-2445
This article was written by Edward Jones for use by your local Edward
Jones Financial Advisor.
Edward Jones, Member SIPC
Digital what? Footprint? You may be thinking thats what you leave behind at the beach. While that may be correct, it is also what you leave behind every time you provide your email, set up a new online account, or allow your data to be tracked. Your digital footprint is the trail you leave behind with Location services on your phone. It is the data you leave behind when commenting on Aunt Sallys Facebook page, sharing your familys vacation pictures on Instagram, or traipsing around the internet to various sites looking for that cute Lladro figurine your mother wanted for Christmas. All of it tells something about you whether you realized it was happening or not.Most of the time, the sharing of your data what you do, how you do it, etc. may not be a big deal. Or is it? The reality is that your data supports big business every day. It is collected, bought and sold (mostly without your knowledge) by data brokers (i.e., Acxiom, Epsilon), credit and identity bureaus (i.e., Experian, Equifax, TransUnion), and Big Tech Companies (i.e., Google, Amazon, Meta, Microsoft, Apple) that share your data with their partners and ad networks.The danger to you is when there is a data breach at one of the many sites that has your data and your data is captured and posted on the dark web. This enables nefarious characters to better target you for scams and potentially steal your identity. Call Lily in the Details today 941-237-0157 and schedule Understanding Your Digital Footprint, Navigating the Online World Safely and Wisely for your community.
By Dr. David RiceSouthwest Florida is home to more than 100,000 veterans, according to the U.S. Department of Veterans Affairs.They own homes, manage businesses and pay taxes here. They volunteer at local nonprofits and donate to local causes. They are the core of our community.Nearly every day, at least one veteran walks into Advocate Radiation Oncology for treatment. Cancer impacts people from every background, including veterans. Even the most hardened veterans struggle with a cancer diagnosis, which is understandable; no one is invincible and cancer generates a wave of emotions shock, anxiety, frustration, fear and stress.Over the years, veterans in Charlotte and Sarasota counties have found an ally inside the treatment room Dr. Brian Lawenda. A board-certified, Harvard-trained physician who completed medical school at Temple University, Lawenda has all the credentials to help a patient feel confident that they're in good hands, medically speaking. Then they find out something else about their physician. He is a veteran, too, having served this country 13 years with the U.S. Navy and attaining the rank of commander."When I enlisted, I took an oath to serve this country and uphold the U.S. Constitution," Lawenda said. "When I became a doctor, I pledged to dedicate my practice to patients and the community I serve, and it's especially gratifying when those patients are fellow veterans."The best doctors don't just treat symptoms; they connect with patients, usually through shared experiences they're from the same state, cheer for the same sports team or attended the same university. Lawenda's military experience helps create an instant doctor-patient bond that continues during treatment and beyond. In fact, Lawenda has become the region's go-to radiation oncologist for veterans, not just Navy veterans, but those who have admirably served across all six branches of the military."When he told me he served in the Navy, it gave me comfort," said Ret. Command Master Chief Scott Fusco, a North Port resident who recently completed prostate cancer treatments at Advocate. "I had absolute trust in him from that point on."Lawenda wasn't the only veteran on Fusco's care team, either. His urologist also served in the Navy and referred Fusco to Dr. Lawenda for treatment."We served at different times and places, but we're all part of the same team," Fusco said. "They've been there, done that, just like me. There is instant respect, instant trust."Lawenda, who sees patients at Advocate's cancer treatment centers in Port Charlotte and Venice, specializes in the treatment of prostate, lung, breast, head and neck, rectal, liver, bone, cervical and other types of cancers. Although Lawenda doesn't technically specialize in the treatment of veterans, he is especially proud to support patients like Fusco on their cancer journey."A veteran may retire or end their military service, but he or she will never stop serving this country and their community," Lawenda said. "Being able to help local veterans beat cancer is extremely gratifying and certainly rewarding. The military is a brotherhood and a sisterhood, and I'll continue fighting for my brothers and sisters."About the AuthorDr. David Rice is a board-certified radiation oncologist who sees patients through Advocate Radiation Oncologys cancer treatment centers in Port Charlotte and Venice. Visit AdvocateRO.com for more information.
Managing diabetes is more than watching your blood sugar. Its about staying active, maintaining your strength, and continuing to enjoy the activities you love.Diabetes affects millions of older adults and can have a significant impact on overall health, mobility, and independence. As we age, managing diabetes becomes especially important because it can increase the risk of falls, nerve damage, muscle weakness, and other health complications.The good news? With the right support, regular physical activity, and a personalized treatment plan, older adults living with diabetes can take meaningful steps toward better health and a more active lifestyle.Why Is Exercise So Important for Diabetes?When you have diabetes, your body has difficulty regulating blood sugar levels. Physical activity helps your muscles use glucose for energy, which can improve blood sugar control.Regular exercise can also help:Improve muscle strength: Maintain the strength needed for walking, climbing stairs, and completing everyday activities.Improve blood sugar management: Help your body use insulin more effectively.Support heart health: Improve circulation and help manage blood pressure.Improve balance: Reduce the risk of falls and injuries.Maintain independence: Make daily activities such as dressing, bathing, cooking, and shopping easier.Increase energy and confidence: Help you feel stronger and more comfortable staying active.Even small amounts of movement throughout the day can make a difference!How Can Physical and Occupational Therapy Help?For many older adults, beginning an exercise program can feel overwhelming, especially when dealing with joint pain, weakness, balance problems, or other medical conditions.Thats where FOX Rehabilitation can help.FOX provides personalized physical and occupational therapy designed to help older adults safely improve their mobility, strength, and ability to perform everyday activities.A physical therapist can evaluate your walking, balance, endurance, and muscle strength to develop an exercise program that meets your individual needs.An occupational therapist can help you find safer, easier ways to perform everyday tasks while improving your ability to remain independent at home.Together, these professionals can help address the physical challenges associated with diabetes, including decreased sensation in the feet, muscle weakness, and difficulty with balance.The Benefits Go Beyond Blood SugarResearch has shown that structured exercise programs can help people with Type 2 diabetes improve their blood sugar control, preserve muscle mass, and increase overall strength.Regular physical activity may also improve blood pressure and reduce the risk of certain diabetes-related complications.Most importantly, staying active can help older adults maintain the freedom to do what matters most whether thats spending time with grandchildren, enjoying a walk with friends, gardening, or simply moving safely around their homes.Therapy That Comes to You!One of the greatest benefits of FOX Rehabilitation is that therapy can take place right in the comfort of your own home.FOX provides physical, occupational, and speech therapy through Medicare Part B for eligible individuals.You do not have to be homebound or recently hospitalized to receive services.This means older adults who may benefit from skilled therapy can receive personalized care in their familiar surroundings without having to travel to an outpatient clinic.Take the First Step Toward Better HealthLiving with diabetes doesnt mean giving up the activities you enjoy. With proper management, regular movement, and professional guidance, you can continue building strength, improving mobility, and maintaining your independence.Before beginning a new exercise routine, speak with your healthcare provider, particularly if you have diabetes-related complications or take medications that can cause low blood sugar.Remember: Its never too late to get stronger, move better, and take control of your health!