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When it comes to Social Security, there is a lot to consider. Social Security is often associated with a retirement program, but you may enroll if you become disabled or lose a family member. Take a look at the diagrams below for information on how to make the right choices for you and your family.When should I start collecting Social Security benefits?The answer is different for every person and depends on many individual factors like your date of birth, marital status and financial position. The longer you wait to start collecting Social Security, the higher your monthly benefit will be. An Ameriprise financial advisor can help you determine an appropriate time for you based on your financial situation and goals. Social Security benefits by ageWhat is my full retirement age?Your full Social Security retirement age depends on the year you were born. If you were born on January 1 of any year, refer to the previous year to determine your full retirement age.1  Year of birth  Retirement Age1943-195466 years old195566 +2 months years old195666 +4 months years old195766 +6 months years old195866 +8 months years old195966 +10 months years old196067 years old  How do my Social Security benefits change if I retire early or late?As life changes and priorities shift, you may wish to retire before or after your full retirement age. Your Ameriprise financial advisor can help you determine an appropriate choice for you. Retiring early locks you into lower monthly payments and will decrease your lifetime benefit amount. Retiring later increases your monthly payment and the amount you will receive over your lifetime.Comparing Social Security benefits by age Can I receive the Social Security benefits of my spouse?As the spouse of someone receiving benefits, you may be able to claim benefits based on their income, even if you have never worked under Social Security. You may be eligible for benefits if you are: Social Security benefits of a spouse Can I collect benefits on behalf of my child?You may be able to claim benefits if the child you are caring for fits the following criteria: Benefits on behalf of a child Can my children receive Social Security benefits?A child who has a parent who is disabled or retired and entitled to Social Security benefits may also be eligible for benefits if they are:   Am I eligible for survivors benefits?You may be eligible for survivor's benefits if you are: How does my military service or government employment affect my Social Security?As a veteran or government employee, your Social Security benefits may differ from others:   Can I still work and collect Social Security benefits?You can collect Social Security benefits while working, starting at age 62. However, your age and earnings may impact the amount of benefits you receive during that time. Working won't permanently reduce the Social Security benefits you receive, nor will your withheld benefits disappear.Once you reach full retirement age:Your monthly benefit will increase, taking into account prior benefits detained due to earnings.Extra income no longer decreases your benefits.If you work and collect Social Security when you are:   These types of income are exempt from the Social Security earning limit:Social Security income exemptions*If you work for someone else, only your wage amount applies to earnings limits. If you're self-employed, only your net earnings count. Does Social Security allow for inflation or cost of living increases?The Social Security Administration can enact yearly benefit increases called cost-of-living adjustments (COLA) based on inflation. Since 1975, COLAs have ranged from 14.3% (1980) to 0.0% (2009, 2010, 2015). Your financial advisor can help you identify other sources of income when Social security inflation adjustments are low.YearCost of Living Adjustment20228.7%20215.9%20201.3%20191.6%20182.8%20172.0%  When and how do I apply for Social Security?An Ameriprise financial advisor can help you navigate the process for Social Security. When to apply for Social SecurityYou can currently apply for Social Security in the following ways:Our advisors can helpIf you have any questions about Social Security, your Ameriprise financial advisor can help you understand all aspects of your benefits and help you live more confidently so if your life changes, your plan can too.

Estate planning isnt just for the rich and famous. Thinking about your legacy and shaping your estate plan is an important part of the ongoing financial planning process.Heres what you should know about estate planning.In this article:What is an estate plan?Why is estate planning important?What are the benefits of estate planning?What are the elements of an estate plan?Why is a will important in estate planning?When should I update my estate plan?How can I craft my estate plan?1. What is an estate plan?Estate planning is the process of mapping out how your property and assets will be divided in the event of your death. An effective estate plan typically addresses who will inherit your assets and often includes a detailed plan for end-of-life health decisions, should you become incapable of making these decisions yourself. It also seeks to minimize the tax burden for those who inherit your assets.  2. Why is estate planning important?  Estate planning is about leaving the legacy you want for whomever or whatever is important to you. Your life and your dreams transcend money they also encompass your values. Your wishes may include using your assets to help secure your family's future, or you may choose to support an organization or institution youre passionate about.3. What are the benefits of estate planning? An estate plan can help provide protection both during your life and after your passing. A well-rounded estate plan helps you:  Protect your assets. You can ensure your desires and needs are met in the event youre unable to make decisions or speak for yourself. Ensure your wishes are fulfilled. End-of-life care is an important conversation to have between you and your loved ones. In an estate plan, you can specify your final wishes and establish special arrangements for your remains. Provide peace of mind. Without an estate plan, you run the risk of having the court decide the fate of your assets. This process, known as probate, can take weeks or months to settle. Thoughtful estate planning can help minimize your familys financial stress after your passing. Maintain privacy. If you set an estate plan ahead of time, you could avoid going through probate. As such, your estate plan would not become public record.Minimize tax transfers. If you plan to pass on your wealth to loved ones upon your death, the estate planning process can help you reduce the impact of taxes on your assets. Support a cause that youre passionate about. You can leave all or a portion of your wealth to a charity of your choice  and make a difference beyond your lifetime. 4. What are the elements of an estate plan?  Estate plans are made up of many different components. These can include:  A will allows you to specify your wishes, including how you want your property distributed, who will administer your estate and who will care for your minor children. Atrust holds your assets for the benefit of one or more people (you, your spouse, your children and others). You'll need an attorney's assistance to create a trust. Life insurance proceeds are paid to a beneficiary at your death. You can use life insurance to leave income to your survivors, provide for your children's education, pay off your mortgage, and transfer assets. Additionally, life insurance can replace wealth that is lost due to expenses and taxes. Gifts are transfers of property made during your life to family, friends or charity. Tax exclusions can be useful estate planning tools. Consult your tax professional for details. Beneficiaries are those who will receive assets from your estate at the time of your passing.  529 plan contributions can help your loved one pay for their education and remove money from your taxable estate. This will help you reduce your tax liability and preserve more of your estate for the people and purposes that are most important to you. Asset protection may include various tools to help keep your property safe from tax collectors, accident victims, health-care providers, credit card issuers and creditors.  5. Why is a will important in estate planning? As the cornerstone of an estate plan, a will is perhaps the most vital component. The greatest advantage of a will is that it allows you to avoid intestacy. This means that with a will, you can select who will take over your property rather than leaving it up to the courts.  A will becomes particularly important for instances where minor dependents are involved. In many states, your will is the only legal way you can name a guardian for your children. Consider working with an attorney to create your will so that they can help ensure its consistent with your wishes. 6. When should I update my estate plan? Like your financial plan, it's important to review your will and other estate planning documents regularly or when significant life events occur, at the minimum. While there isnt a one-size-fits-all approach, we recommend reviewing your estate plan after major life events or every 3 - 5 years. Significant life events may include:  Marriage Divorce DeathRelocation Changes in tax laws Change in assets A new child (either by birth, adoption, or marriage) 7. How can I craft my estate plan? Professional guidance from your attorney, tax professional and Ameriprise financial advisor can help you evaluate the various components of your estate plan  both in initial creation and in regular reviews. Designing a legacy consistent with your dreams and values is a personal, often complex process. But it's well worth the effort. To prepare for the planning discussions, consider the following:Current income and likely future incomeAnnual expensesCurrent assets and debtsTax implications of federal transfer taxes, state death taxes and federal income taxesYou may also want to consider scheduling time to talk with your loved ones about your estate plans. Sharing your plans can help improve communication, prevent conflicts and ensure your family knows what's important to you.The best time to start planning is now. Work with an Ameriprise financial advisor and your attorney to create an estate plan that reflects whats most important to you.

People have many Social Security benefits questions because its such a vast program we help simplify the information and answer your top questions.Its common to associate Social Security with retirement. However, there is much more to Social Security than retirement income. There are many people who can qualify for Social Security benefits including retirees, their spouses, disabled individuals, and survivors of the deceased. For many people in the U.S., Social Security is a valuable program.In this article:What is Social Security?Who can qualify for Social Security benefits?What are Social Security credits and how are they earned?Can I qualify for benefits based on my spouses income?When should I take my Social Security retirement benefits?How is my Social Security benefit amount calculated?When do I apply and how do I apply for Social Security benefits?How can an Ameriprise financial advisor help? What is Social Security?1Social Security is a U.S. federal program that provides enrolled individuals with a source of income when they become unable to work or earn sufficient wages on their own. There are three types of Social Security benefits: Retirement (spousal benefits available in some cases)DisabilitySurvivors Who can qualify for Social Security benefits?You are eligible to receive Social Security benefits in the United States once youve accumulated 40 work credits as long as you also pay Social Security taxes (this is applicable for certain government employees or those who are self-employed). Non-U.S. citizens who are living legally in the United States and have earned benefits can also qualify for Social Security.What if I live abroad?Most U.S. citizens who live in foreign countries after they retire can qualify for Social Security benefits. However, the U.S. government will not send Social Security payments to those living in Cuba or North Korea. Additionally, Americans living in Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Uzbekistan must qualify for an exception in order to receive benefits while living abroad.How do I qualify for Social Security?To qualify for Social Security retirement benefits, in most cases:You must be 62+ years old, or disabled/unable to work, andYou must have sufficient credits earned throughout your working life.To qualify for Social Security spousal retirement benefits:To qualify for Social Security disability benefits if you are under the age of 62:To qualify for Social Security survivors benefits: What are Social Security credits and how are they earned?Social Security credits determine eligibility and benefit amounts in retirement. In 2023, earning $1,640 in income qualifies as earning one Social Security work credit.2 You are eligible to earn up to four credits per year. Most people need 40 credits (10 years of work) to qualify for Social Security benefits though younger individuals require fewer credits for disability benefits or for their family members to receive survivors benefits. Can I qualify for Social Security benefits based on my spouses income?Short answer: in some cases.Retirement benefits are based on your own earnings record. However, spousal and survivors Social Security benefits are based on your spouses earnings, whether the spouse is deceased or divorced from you. Keep in mind that you can qualify for spousal or survivors Social Security benefits as well as your own retirement benefit but, Social Security wont let you add these amounts together. Instead, you will receive whichever benefit is larger. When should I take my Social Security retirement benefits?Waiting to collect Social Security benefits may be beneficial if youre able to do so. While the age to receive your full retirement benefit is 66-67 (depending on the year you were born), you can begin collecting Social Security benefits as early as age 62. But each month you wait to start collecting (up until age 70) increases your eligible benefits.4Once you reach full retirement age, youre entitled to 100% of the benefits calculated from your lifetime earnings. If you wait until age 70 to begin collecting Social Security, your retirement benefit will be 32% larger.3However, waiting may not be the right choice for everyone. Your financial advisor will help you determine an approach that reflects your options and your personal situation. For example, they may consider:Varying tax rates on Social Security incomeCapital gains and IRA withdrawalsHealth issues and life expectancy in your family historyWhether your current retirement accounts and additional sources of income (including Social Security or pensions) will cover your essential expenses before you reach full retirement ageView our Social Security Infographic for more information How is my Social Security benefit amount calculated? Another common Social Security benefits question is how payments are calculated based on your lifetime earnings. To account for changes in average wages each year, the Social Security Administration (SSA) indexes your income using the national average wage index. The SSA calculates your average indexed monthly earnings (AIME) based on the 35 years in which you earned the most. A formula generates your basic benefits, otherwise known as your primary insurance amount. This primary insurance amount (PIA) is what you would receive at your full retirement age. If you were born between 1955 and 1959, full retirement age is between age 66 and 67. For those born in 1960 or later, full retirement age is 67.5 When do I apply and how do I apply for Social Security benefits?The SSA recommends applying four months before you want your Social Security retirement benefits to begin.  There are two ways to apply:Online application: Find it on the Social Security Administrations website.Over the phone: Call 1-800-772-1213 (TTY 1-800-325-0778) from 8 a.m. to 7 p.m., Monday through Friday, to apply by phone. How can an Ameriprise financial advisor help?Your Ameriprise financial advisor can answer any Social Security benefits questions you may have, as well as evaluate your Social Security options and help you with your overall retirement income planning. They will review how scenarios (such as working longer or delaying benefit collection) can help optimize the benefits for you, a spouse or family members.

When youre preparing to receive an inheritance, where do you start? The loss of a loved one can be an emotional experience and managing an inheritance can be complex. The process may seem overwhelming but being planful and prepared can help. No matter the amount you receive from relatively modest and straightforward to substantial and complex the following steps can help you navigate the intricacies of managing an inheritance and establishing your own legacy. 1. Take a pauseSmart money management involves proceeding with intention. This is especially true when managing an inheritance due to the array of emotions that are often at play. If you know in advance that youll be receiving an inheritance, considering talking with a financial advisor to discuss how you can prepare for this event. When you receive the funds, take a step back and evaluate your options before you make any decisions. For example, you may want to consider temporarily placing any monetary assets in a FDIC-insured account, like a CD, savings account or money market account. 2. Tap into expertsInheriting money or other assets can begin an important and sometimes overwhelming new chapter in your financial life. There are many decisions to make and factors to consider, some of which you may not yet even be aware. What are the short- and long-term tax implications of the inheritance? What paperwork do you need to complete to transfer assets to your name?  What, if any, legal documentation should you have in place prior to receiving your inheritance? A financial advisor can help you navigate these and other important decisions. Depending on the size and scope of your inheritance, it may be beneficial to consult with a tax professional and/or attorney who specializes in estate planning. 3. Understand your new assetsAn inheritance can arrive in many forms. Before you move forward, its helpful to have a thorough understanding of what you inherited. Asset types could include retirement plans, stocks and bonds, life insurance, cash endowments, businesses or real estate. A financial advisor will help assess the elements, help calculate the estimated value of assets and determine if theyll be available to you immediately or distributed over time. 4. Factor in tax implicationsTaxes surrounding an inheritance can be complicated, and you may owe taxes on your newfound assets. If youve inherited a variety of asset types, several different tax treatments may come into play:IRAs: If you inherit an IRA from your spouse, you have options for managing the account. A required minimum distribution (RMD) that must be withdrawn from the account each year may or may not apply depending on what option you choose. If you did not inherit the IRA from a spouse, RMD rules apply and depend on several factors. There is a severe tax penalty of up to 50% of the amount not taken if you do not follow RMD rules.Inherited stocks or other investment assets: For tax purposes, the cost basis of inherited stocks and other assets is based generally on the fair market value of the asset on the date of the decedents death, not at the original cost of the asset. This is called step-up in basis and can affect the amount of capital gains tax you pay when you sell the assets.   Life insurance proceeds: The money you receive as part of a life insurance payout is not typically taxed. However, if you place the funds, along with other inherited assets, in an interest-bearing account, you will be taxed on the interest you earn. These taxes can be significant if you inherited a large amount of money, which may require you to make estimated tax payments. How you navigate the tax implications of an inheritance can have a huge impact on your finances. A financial advisor can partner with your tax professional to determine ways to help preserve your assets while adhering to tax laws. 5. Consider your financial goalsOnce you have a solid grasp on your inheritance, its a good time to revisit your financial needs and goals. Youll want to explore options that help you achieve the goals most important to you. For example, you could: Rebalance your portfolioStrengthen and diversify your retirement savingsContribute the maximum amount for workplace retirement plansCreate or add to an emergency fundPay off debtPurchase or enhance long-term care insuranceInvest in home improvementsDonate to a charity of your choiceLeave a legacy A financial advisor can help you consider the investment strategies, insurance options, cash management vehicles and other tools specific to your circumstances and goals. 6. Evaluate insuranceNew wealth and assets may require more property and casualty insurance coverage for example, umbrella coverage particularly if those assets are significant. In addition, this is a good time to assess your circumstances and explore your protection options. You may want to consider reviewing your current life insurance needs with a financial advisor. 7. Create or update your estate planAfter receiving an inheritance, you may want to set up your own financial legacy by establishing an estate plan or updating one you already have in place. Work with your attorney to update your will, establish a trust or to take steps which can help minimize federal or state estate taxes for your beneficiaries all of which are especially important if youve inherited a substantial sum. 8. Proceed with confidenceWhen preparing for and receiving an inheritance, take advantage of the professional guidance available to you. Consider connecting with an Ameriprise financial advisor. They will review your complete financial picture and guide you through critical decision points so that you can feel more confident about managing your inheritance and your future. 

Caring for an aging parent or loved one is an invaluable form of support, but it can feel stressful and overwhelming as it often comes with unique financial, medical and legacy challenges. For some, the caregiving journey is a gradual process of increasing support to loved ones. For others, a significant health or financial event prompts caregiving responsibilities unexpectedly.No matter your role, an Ameriprise financial advisor and other professionals will provide advice on navigating this complex dynamic. While every family situation is different, these actions can help prioritize your loved ones wellbeing and manage stress:1. Clarify roles and responsibilitiesCaregiving is a partnership. As such, gather your family members for an initial conversation to help define roles and responsibilities. Regularly revisit the roles and responsibilities as needs and capacities change over time. Its also important to learn and confirm the wishes and preferences of those being cared for. Common caregiving tasks to address may include: Health and financial supportPersonal supportPractical support Health care planningFinancial assistance Personal careCompanionshipCare coordinationHome cleaningHome maintenance TransportationErrands/shoppingWho takes on these caregiving tasks in your family may be influenced by:Health status of your loved one Level of assistance your loved one needs The proximity of relatives to their geographical location Your loved one's living situation 2. Stay connected and informed on financesIts common for an adult child to help manage or provide general oversight to finances as their parents or loved ones age. Here are a few questions to consider:Does the situation necessitate a financial power of attorney to keep their finances secure? Certain circumstances may warrant naming a financial power of attorney, who is legally designated to financially act on your loved ones behalf if they are no longer able to. Do your loved ones need help tracking income and expenses? To help them make the most of their retirement income, consider asking to review their monthly inflows and outflows. Do you know where important financial documents are? Help identify and store copies of important documents in a secure electronic file. With their permission, you can also help securely store applicable passwords.Do they have a financial advisor you can meet? Consider asking your loved ones if you can accompany them to meetings with their financial advisor to stay informed, take notes and further understand their financial values. This also may be a good opportunity to review their expenses and identify cost-saving and investment opportunities that may exist. And if they dont have a financial advisor, consider introducing them to yours.3. Review insurance policiesIn addition to your loved ones finances, familiarize yourself with their insurance policies. Ask permission to closely review the policy details to determine if the policy is up-to-date and the coverage meets their needs. Specifically, confirm that the correct beneficiaries are listed. Your loved one may have one or more policies, including:AutoHomeLiabilityLifeLong-term careMedical4. Watch for financial fraud Aging individuals are often at higher risk of becoming a victim of financial fraud and identity theft. Protect your loved ones by:Setting up alerts: Receive alerts for every transaction over a certain dollar amount on your loved ones account. Reviewing credit reports: Work with your loved one to obtain and review their annual credit report. Implementing a security freeze: You may want to put a freeze on your loved ones credit reports to prevent an unauthorized party from making a credit inquiry.Bringing examples of financial fraud to their attention: Remind your loved one regularly about common red flags to watch for. Becoming a trusted person on their financial accounts: This gives the bank or other financial institutions permission to contact you with questions about the account or discuss irregular activity.5. Manage health information Regardless of if your loved one has a medical condition, it helps to become familiar with their health care. Here are a few actions to consider:Confirm they have an advanced directive and health care proxy: An advanced directive (also known as a living will or health care directive) is a legal document that outlines what kind of medical care your loved ones want and dont want if they are unable to make those decisions for themselves. A health care proxy names the person with legal authorization to make health care decisions for your loved one if they become incapable of making those decisions themselves. Help ensure appropriate agents are named to make those important decisions.Know their health care providers and medical insurance: Consider asking permission to attend medical appointments to know their providers. Keep a document with provider names, insurance carriers, specialties and contact information.Access important health information: To further support your loved ones health, you can obtain access to their medical records with their consent (health records are usually available via a secure online portal like MyChart.) If your aging parent qualifies as a veteran, you may want to explore their Veterans Administration (VA) benefits and learn what medical coverage the VA offers.6. Understand their legacy wishesAn Ameriprise Financial study found that more than two-thirds of investors indicated they wanted to pass along wealth to their heirs. But many people are reluctant to discuss their intentions during their lifetime. 1To stay informed on your loved ones wishes, set aside time to facilitate a legacy conversation and go over the details of their estate plan. Ensure all heirs attend or record the discussion, so everyone hears the estate plan details firsthand and can ask questions.As a part of the estate plan conversation, identify and gather key documents.Documents may include:Bank and investment account information and statementsBirth/marriage/divorce certificatesInsurance informationMilitary discharge documentationPower of Attorney/health proxiesProperty/car titlesSocial Security cardsTax returnsWillRemember, you're not aloneAs loved ones age, its normal for families to find themselves providing more support. Taking proactive actions now can reduce stressors for you and your loved one later. An Ameriprise financial advisor, along with medical and legal professionals, will help you navigate and coordinate the challenges of caring for aging parents. 

The loss of a family member is a difficult time. In addition to coping with your grief and potentially planning a memorial service or funeral, there are often many financial decisions that follow soon afterward.But how do you know what youre supposed to do? It can feel overwhelming. Heres a list of common steps to help reduce stress during this time. As you move forward, consider tracking dates, discussions and decisions in a notebook or online document.Reach out to professionalsContact your Ameriprise financial advisor so they can help you evaluate the financial aspects of the situation.Contact the persons estate attorney to see if they have an estate plan. This might include a will and revocable trust, for example. The attorney should be able to tell you if there is an:Executor of the willTrustee of any trusts that existA guardian for the care of a child and financial management while the child is a minorOur Estate settlement FAQ can help guide you through the estate settlement processIf the surviving spouse previously named their now-deceased spouse as their durable power of attorney or medical power of attorney, they will need to contact their attorney to name a new person in estate documents.Download these resources to print or save for later: Interactive checklist of this article. Estate settlement guide for Ameriprise accounts.Arrange necessitiesObtain multiple copies of the certified death certificate. Some companies will not accept a photocopy. This is common with insurance policies and annuity contracts, for example.Obtain a certificate of appointment to document the authority to act as personal representative, if required in your state. Keep in mind that language used to describe aspects of settling an estate can vary in each state.Find the individuals passwords and consolidate them in one place.Open an estate checking account, if necessary, to pay bills and receive accounts/assets associated with settling the estate. If you open a checking account for the estate, youll need to get an employer identification number through IRS Form SS-4, Application for Employer Identification Number.Locate a local notary, as they will be needed for many steps. You might also need a medallion signature guarantee, which guarantees the authenticity of a signature that authorizes a transfer of securities that are held in physical form.Update financial accountsContact financial organizations to find out how to update ownership and beneficiary designations on joint financial accounts (investment, bank and credit accounts).Contact financial organizations to determine how to close single-owner financial accounts and transfer assets.Update names and beneficiaries on insurance policies, including life, health and auto policies. Among the insurance providers, also confirm the coverage requirements to maintain the persons assets (including the car).Visit the secure site on ameriprise.com to review and update your beneficiaries on your Ameriprise accounts.Contact all three major credit bureaus to minimize the risk of identity theft.Manage or update real assetsDetermine how the persons assets/property will be maintained during the estate settlement process.Update the property title(s) for real estate. If property was owned in multiple states, review the probate process in each state. (For non-resident states, ancillary probate may be necessary.)Locate the title and registration for any cars, so that you can update the vehicle title and registration; cancel the drivers license.Look into third-party benefitsContact the Social Security Administration regarding survivors benefits. You might also be eligible for a one-time death payment.Contact a deceased spouses employer (if applicable) if there is a 401(k) account and a group insurance policy. It may also be necessary to contact former employers that may have provided a group life insurance policy. The person may also have retirement plans through former employers.Look into veterans benefits (if applicable) and possible assistance with burials costs for veterans and their spouses.Youre not alone support is available when you need itYour Ameriprise financial advisor understands your financial goals and needs, and they can help guide you through the financial implications following the death of a family member.

Your retirement could last several decades, so its important to not let taxes diminish your savings more than necessary. One way to safeguard against this is through implementing a strategy called tax diversification that spreads out your investments across various tax treatments over a long period.Heres how tax diversification can potentially help you keep more of your hard-earned retirement savings: What is tax diversification?Tax diversification is a strategy that takes into consideration various tax treatments across the investment accounts you will eventually use for income in retirement. Because different types of accounts and investments offer specific tax advantages, you can gain more control over your taxes by placing your investments in a variety of accounts. When coupled with a tax-efficient withdrawal strategy, tax diversification may help your assets last longer in retirement. Taxation is just one consideration when making investment decisions. How tax diversification worksThere isnt a one-size-fits-all approach for tax diversification. An Ameriprise financial advisor can work with you to make personalized recommendations based on your financial goals, time horizon, account mix and tax situation.An Ameriprise financial advisor can review your investment accounts through the lens of the three different types of tax treatments  taxable, tax-free and tax-deferred  and decide how to strategically allocate your assets among them.The idea is to diversify your retirement funds among different account types during your working years as you save for retirement. There are a couple ways to achieve this: You can diversify as you save, and you can also move investments in and out of the different types of accounts after you have saved into them. However, moving investments in and out of a taxable account can have tax consequences, while moving investments in retirement accounts, like traditional or Roth IRAs, generally wont. Breaking down the different tax treatments:Tax treatmentTaxableTax-freeTax deferredHow contributions are taxedContributions made with after-tax dollarsContributions made with after-tax dollarsContributions made with pre-tax or post-tax dollars8How earnings are taxedTaxable income, including capital gains when realized, interest when received or dividends when paid1Earnings can be tax free, provided certain conditions are metMoney grows tax deferred. Distributions are generally taxed at ordinary income rates8Account examplesMutual funds, stocks, bonds, bank accounts2Roth IRA, 3,4 Roth 401(k),3,4 529 plan,5  municipal bonds,6 cash value life insurance,7 health savings accounts401(k),3 8403(b),3 457(b), traditional IRA,3 pension plans,3 annuities3Potential reasons to contributeYou want more flexibility for when you can withdraw your money and dont want to consider required minimum distributions (RMDs).    You want to withdraw money in retirement without being pushed into a higher tax bracket.You anticipate you will be in a lower tax bracket during retirement. Taxable distributions are generally taxed as ordinary income upon withdrawal8  What are key benefits of tax diversification?In general, many investors gravitate toward tax-deferred accounts such as a 401(k) and thus, tend to be overweighted in investments that will be taxed in retirement.By diversifying your investments across all tax treatments, you can:Take more control of your financial picture, now and in retirement. Taxable and tax-free accounts, other than the Roth 401(k), do not have distribution requirements, allowing you to control when and how much you take. Tax-deferred qualified accounts generally require distributions at age 73,9 but you control distributions from tax-deferred accounts before age 73 and amounts you take over the RMD.9Potentially fuel savings over time and help your assets last longer. Being able to choose which assets are used to create your income could allow you to spread your taxable distributions over more years so you pay less in taxes and keep more of your savings.Gain flexibility in how you access retirement income in the future. Life events are likely to change your savings and income needs in the future. Diversifying your savings among these different tax treatments will give you greater flexibility as life events, both expected and unexpected, occur. When should an investor consider tax diversification?Some opportunities may exist to diversify your tax situation during retirement, but in many cases tax diversification should be done over time. The sooner you consider how and when your retirement assets are taxed, the more time you have to make adjustments and accrue any potential benefits.Consider this scenario:Lets assume a 25-year-old investor at the start of his career expects his income in retirement to be much higher than what he currently earns. In this example, it may make sense for him to prioritize saving for retirement in a Roth IRA while his income is at lower rate (and he is still eligible to contribute). Though he will pay taxes on his Roth IRA contributions now, he wont pay taxes on the distributions in retirement, when his tax bracket could be higher. For this investor, understanding the dynamics of tax diversification early in his career may lead to reduced taxes and longer-lasting assets in retirement. 

While you can't predict the future, you can help protect yourself by learning about unexpected events that retirees commonly face and planning for retirement surprises accordingly.How can you prepare for the unexpected? Discuss your plans for dealing with life-changing issues with your spouse, domestic partner or family members. A financial advisor can also help you prepare by helping you establish a cash reserve, review your beneficiaries, evaluate your insurance and develop other strategies.Consider the following to ensure you plan accordingly no matter what comes your way.Developing a contingency plan for unexpected eventsDisability, long-term illness, the death of a spouse and the special needs of children or aging parents these are the kinds of personal life events that can affect your financial security and well-being.In addition, external sources of income or safety nets can change without warning. Your financial contingency plan should include strategies for adjustment in the event of job loss, reduction of retiree benefits or changes to Social Security and Medicare.Building a cash reserveIf an unexpected life event occurs, it's likely to increase current expenses or interrupt your income. The goal is to have a cash reserve built up to provide a cushion against the interruption, and prevent the need to tap into long-term investments.During your working years, the cash reserve should be enough to cover at least three to six months of living expenses. As you get closer to retirement, you may want to shift your portfolio towards more income-generating investments and a larger cash reserve. Once you're no longer earning a paycheck, it's wise to have ready access to your money.Managing an inheritanceReceiving a sudden inheritance may create new opportunities, but it can also add some financial stress. Fortunately, there are ways to decide how to handle your new inheritance. Start by asking yourself:Would you like to change your retirement lifestyle?Do you plan to pay for a family member's education?Have you considered helping out loved ones or contributing to a favorite charity?In addition to answering these important questions, you may also need to manage new income and estate taxes. This is an ideal time to seek the advice of a tax professional as well as a financial advisor.Understanding the financial impact of a serious health conditionIf you or your spouse or partner suffers a serious illness or disability, it can quickly deplete your savings. Ongoing prescription drug costs and routine medical services can also add up over time. It's important to have the right insurance and cash reserves to cover medical costs.Re-examining your retirement plans following a divorceAfter a divorce, you'll need to re-examine your long-term goals and create a strategy for the future while also addressing your daily needs. Some issues to consider:Do you have enough income to support yourself and any dependents? Should you consider paying or receiving spousal support?Which assets do you really want? Which are you willing to let your spouse keep?Will you have enough money to pay outstanding debt on the assets you keep?Will you be able to meet your goals for retirement?As you consider these topics, keep in mind that the time following a divorce can be financially challenging. Access to a cash reserve that covers several months of your expenses can provide both needed income and confidence that you have the money you need until a new financial plan is in place.Coping with the loss of a spouse or domestic partnerThe loss of a spouse or partner can be emotionally exhausting for you and your family. Handling financial matters during this difficult time can be particularly overwhelming.Generally it makes sense to delay big changes like moving from your current home until you know that you're making decisions based on reason, rather than emotion. Also, think about the goals you and your spouse or partner shared and decide how your goals as an individual may change:Is your income adequate for your needs?Do you need to make changes to your spouse's accounts or other assets?As you consider how you would handle the loss of a spouse, think about what you can do now to prepare them in the event something happens to you. Discussing your wishes, organizing your accounts and reviewing your life insurance can help your spouse or partner get back on their feet after you're gone and help them fulfill the goals you shared.Working with your Ameriprise financial advisor, you can prepare for the most common challenges retirees face with a flexible financial plan that accounts for unexpected financial events and retirement surprises.

Learn more about these 6 keys to better investing:Leverage the power of compound interestUse dollar-cost averagingInvest for the long termTake your risk tolerance level into accountBenefit from diversification and strategic asset allocation Review and rebalance your portfolio regularlyAn Ameriprise financial advisor can help you employ and balance these and other investment strategies as you work toward your long-term financial goals and manage short-term market changes. 1. Leverage the power of compound interestOver time, as your investments earn interest, if you reinvest those earnings, you earn interest on your interest. This is the core idea of compound interest. Without any extra effort on your part, compounding interest and time work together to potentially increase your investment returns.If you start saving early, you take advantage of the effects of compounding interest on your investments over a long period of time. This has the potential to increase your total returns.How compounding interest can increase returnsBased on an initial $10,000 investment and 7% annual growth per year*This illustration is hypothetical and is meant to show the effects of compound interest. It is not meant to represent any specific investment or imply any guaranteed rate of return and does not account for inflation or taxes. 2. Use dollar-cost averagingSticking to the discipline of dollar-cost averaging can help you avoid making emotional decisions based on market turbulence. With dollar-cost averaging, you invest a certain amount of money at regular intervals, regardless of what the market is doing. By always investing the same dollar amount every month or other chosen period, you naturally buy fewer shares when the market is high and more shares when the market is low.Dollar-cost averaging 3. Invest for the long termIt may be tempting to try and time the market buy and sell investments based on what you believe the market is going to do in the future but you risk losing quite a bit of money, over time. During volatility, the worst days in the market are often closely followed by some very good days. When you take money out of the market on a downturn, you may miss the subsequent upswing and recovery in prices.Time is on the side of the investor and a buy-and-hold strategy usually produces better results in the long term.A financial advisor can help you create a personalized investment plan that looks at both inflation and your long-term goals, so you can retire with more confidence. 4. Take your risk tolerance level into accountWhat are your goals for investing? Are you comfortable losing money if the stock market performs poorly or does any sort of investment loss make you nervous? These are the types of questions to think about and discuss with an advisor to help gauge your tolerance for risk.Investors with more time to recoup market losses may be more comfortable taking risks. However, as you near retirement or if youre already retired, you may want to adjust your risk tolerance to make sure your investments are consistent with your goals.Once youve determined how much risk youre willing to accept and what your investing time frame is, your advisor can help you allocate assets and diversify your portfolio accordingly.Take the risk tolerance quiz to figure out your own risk tolerance level. Risk tolerance levels 5. Benefit from diversification and strategic asset allocationDiversification refers to the mix of investments in your portfolio, such as stocks, bonds, alternative investments and cash for the purpose of mitigating risk. By including a variety of investment types, you reduce your dependence on the performance of any single investment. Think of the adage, Dont put all your eggs in one basket. Portfolio diversificationAsset allocation refers to being planful about the amount you invest in each asset class. It is the nature of markets that different asset types react differently to changes in the market while one class is performing poorly, another is likely doing better. The right asset allocation strategy will factor in your goals, risk tolerance, time horizon and tax sensitivity.Asset allocation 6. Review and rebalance your portfolio regularlyOver time, investments within your portfolio will grow at different paces. As a result, your diversification and asset allocation can become unbalanced. Add in any changes to your income, risk tolerance or family situation, and your investments may no longer reflect your goals. An annual review of your portfolio with your advisor will give you an opportunity to fine-tune and rebalance your portfolio to help you stay on track toward meeting your financial goals.

A well-planned strategy for giving back to causes that are important to you whether through charitable giving, cash, non-cash charitable donations or volunteering can provide a range of benefits, from reduced taxes to a sense of personal fulfillment and a meaningful legacy.  Here are the ways you can begin building a personal philanthropy strategy that will make an impact.In this article:Research charities Lower your tax bill with tax-deductible donationsConsider non-cash charitable contributionsBuild your legacy with planned givingVolunteer your timeFit charitable giving into your overall financial planResearch charities Before you decide on a non-profit or charity, do some research. Whatever charity you decide on, youll want to ensure theyre using their charitable donations in ways you feel are appropriate. Many worthy causes have more than one nonprofit devoted to them, so dont settle. Websites such as CharityNavigator.org and GuideStar.org can help. You may also want to confirm the organizations tax-exempt status, if that is important to you. Some nonprofits, such as international charitable organizations, may not qualify for charitable tax deductions. One way to help confirm the tax deductibility of a donation is to use the IRS tax exempt organization search tool to check an organizations tax-exempt status.Lower your tax bill with charitable tax deductions To claim a federal income tax deduction for your donations, youll generally need to itemize your deductions rather than claim the standard deduction, so keep and organize your receipts for future reference. Keep in mind that charitable donations will only lower your taxes if your total itemized deductions are higher than the standard deduction for that tax year.  While cash is a straightforward way to give back, there are options to consider beyond a simple cash donation:Invest in a charitable gift annuity. With this specific type of annuity, youll donate an upfront lump-sum to a charity and receive lifetime payouts on a fixed schedule. Youll also potentially qualify for a partial charitable tax deduction when you make the initial donation, and the charity will keep any remaining annuity funds upon your death.Use a donor-advised fund, which allows you to claim a potential charitable income tax deduction today for funds you contribute to a charitable investment account. You can make a significant contribution in one year and make non-binding recommendations on how to allocate the funds to nonprofits over a number of years, however the fund is not obligated to follow any of your recommendations.Consider non-cash charitable contributionsMany people automatically pull out their checkbook when its time to give. While cash gifts may be convenient, non-cash charitable contributions are also a great option for donations. Non-cash charitable giving contributions may include: Donate appreciated stock or assets. If you donate appreciated stock that youve held for more than a year, then youll generally be able to claim a potential charitable tax deduction for the full fair market value of the stock. This approach saves paying the capital-gains tax that would result if you instead sold the stock and donated the cash. Donate your life insurance proceeds to charity. Naming a charity as beneficiary of a life insurance policy can make your charitable gift go further by leveraging premium dollars into a larger death benefit amount. Because you retain ownership of the policy, you can change beneficiaries at any time, for any reason. If you instead choose to donate full ownership, rather than just proceeds, you no longer control the policy, but youll gain a potential income tax deduction. Also, if you continue to pay additional premiums, you can potentially deduct those payments from your income taxes as charitable donations.Donate clothing and goods and get a charitable donation receipt. Donating items that are consuming space in your attic or closets can help others while providing you with a potential tax deduction. Used items generally need to be in good condition or better. Like other giving types, donations must be made before Dec. 31 to claim a tax deduction for that calendar year.Build your legacy with planned giving There are several ways to make planned giving part of your estate plan, including:Designate a charity as a beneficiary on permitted accounts, such as an IRA.Set up a trust to benefit charitable or family interests.A charitable lead trust, provides income to charity today, while leaving the remainder to named beneficiariesA charitable remainder trust pays income to you or your family for a period of years with the remainder going to the charities of your choice.Volunteer your time Giving doesnt have to end with donating money or things you can donate your time, as well or instead. Volunteering with a local charity or nonprofit. Whether you leverage your skills to teach or mentor others or serve on the board of a nonprofit, there are many opportunities to give back with your time. If youre retired and have connections with community organizations outside of work hours, then skills-based volunteering using your career expertise to help others may be a natural progression for you.Voluntourism, or volunteering while traveling. The dream of exploring the world while making it a better place can become a reality in retirement, when youll likely have a more flexible schedule. Traveling with a purpose commonly referred to as voluntourism can be done independently, though working with an accredited organization can ensure your safety, as well as the impact of your endeavors. Additional tips to consider: Websites like volunteermatch.org and idealist.org can help you find volunteer opportunities near you that fit your interests and skills.If you volunteer with a nonprofit, keep track of your volunteer auto mileage and expenses, as those may be tax deductible, too.Volunteering in retirement presents unique opportunities since retirees often have more professional experience and more free time; charities especially value the contributions that retired and senior volunteers bring. Fit charitable giving into your overall financial planOnce youve identified your personal goals and priorities for giving, an Ameriprise financial advisor can help create a charitable and personal giving strategy that fits with your overall financial goals. Theyll help create an approach that can optimize your contributions, provides potential tax benefits and reflects your values and the kind of long-term legacy you want to leave for others.

Being aware of key retirement ages can help you prepare for the future.Your retirement savings milestones begin when you reach catch-up contribution age. You can make catch-up contributions to many retirement plans beginning in the year you turn 50.403(b) and 401(k) withdrawal age. You can start taking penalty-free withdrawals from qualified retirement plans such as 401(k)s, 403(b)s and profit-sharing plans after you leave your employer in the year you turned 55 or later.IRA withdrawal age. This is another key retirement age because you can begin taking withdrawals without penalty from IRAs and qualified retirement plans.Social Security benefits age. You can start taking reduced Social Security benefits.Medicare sign up age. You should sign up for Medicare hospital insurance (Part A) 3 months before your 65th birthday, whether or not you want to begin receiving retirement benefits.Social Security benefits age. You can start taking full Social Security benefits depending on your birth year. Any delay in applying for Social Security benefits, up to age 70, can qualify you for increased retirement benefits.Required minimum distribution (RMD) age.1 This is a key retirement age because you must begin taking RMDs from most retirement accounts. Your exact RMD age will depend on the year you are born: The RMD age is 73 for individuals who turn 72 after 2022. In 2033, the RMD age is set to increase to 75.1Please note: The new legislation assigned both age 73 and age 75 as the RMD age for those individuals born in 1959. Those born in 1959 will likely have an RMD age of 73, but this rule will need to be clarified in the future.Contact an Ameriprise financial advisor today to learn more and get retirement advice by age and recommended strategies to help you stay on track.

Phishing attacks are phony communications designed to trick a person into giving a scammer sensitive or financial information, such as account usernames, passwords, credit card information and Social Security numbers.Phishing attacks may appear to be from a legitimate business or trusted individual and can come in many forms email, text message or phone call so its imperative to understand the red flags associated with these malicious attempts. Remember: If a message whether it be email, text or phone appears suspicious in anyway, dont engage.Heres how to better protect your account from these different types of phishing attacks:Email phishingText message phishingVoice call phishingEmail phishingEmail phishing refers to fraudulent emails that typically appear to come from trusted individuals or legitimate businesses such as financial institutions, insurance companies or retailers and often include seemingly authentic logos, look-alike email sender domains, as well as links or graphics that look genuine.Fraudsters engaging in email phishing may attempt to deceive you into downloading an attachment or clicking on a link within the message that will download malware onto your computer to illicitly obtain personal and financial information. These links may also redirect to legitimate portals, such as Microsoft Office, where they will ask you to enter your account credentials.What to watch for:Sense of urgency. Phony phishing messages try to bait you with an urgent situation requiring you to take immediate action. Watch for clickable links to update or validate personal information. Additionally, be cautious of any emails that appear to use current news events (like a natural disaster or geopolitical tumult) to solicit donations.Spelling or grammatical errors. Its rare for a well-known company to have spelling and grammatical errors.Suspicious links. Be wary of links in emails. Its always safest to go directly to the company website and log in to your account.Phishing email exampleWhat to do if you suspect an email is a phishing scamDo not click on any attachments or links in the email, or take any action requested within the message.If the email is sent to a work account, follow their protocol for reporting phishing attempts.If the email is sent to a personal account, delete it and follow up with the purported sender directly. For example, if the sender appears to be a company, visit the companys website directly to check on your account activity.Log in to accounts using 2-Step Verification when possible.How to report email fraud or phishing to AmeripriseIf you suspect youve received a fraudulent email from someone posing as Ameriprise, please:Forward it to us immediately at: anti.fraud@ampf.com.Do not remove the original subject line or change the email in any way when forwarding.Watch for an auto-generated reply to let you know weve received your email. If we confirm the email is fraudulent, we will take appropriate action immediately.If you provided your account information to a request you suspect may have been fraudulent, call us immediately at 800.862.7919.Text message phishingText message phishing also known as smishing refers to fraudulent messages sent via text or through other mobile-friendly communication platforms, such as Instagram direct messages, WhatsApp or your LinkedIn mailbox. Like email phishing, scammers conducting text phishing attacks aim to steal their victims personal and financial information.What to watch for:Fake email address. Most companies use a short code to send text alerts, not an email address. Emails may be from a look-alike domain and not a legitimate firm or company.Suspicious links. The URL should include the company name and website domain (ameriprise.com, for example). Always be cautious of shortened URLs from services (bit.ly or tinyurl.com, for example).Urgent or threatening message. Messages are written to try to bait you with an urgent situation that requires you to take immediate action. If the text contains a threatening message, its probably a scam. Phishing text message exampleWhat to do if you suspect a text phishing scamBe wary of links sent through text messages.If the text message seems suspicious, do not respond.Visit company websites directly to check on your account activity.Voice call phishingVoice call phishing (also known as vishing) is when a fraudster attempts to deceptively extract an individuals personal or financial information through a phone call.What to watch for:Personal information requests. Ameriprise Financial, government agencies, and other bank and financial companies will not call you unexpectedly and ask you to provide personal information like passwords, account numbers, or Social Security numbers.Remote access requests. Never give anyone remote access to your computer unless you have contacted them. Be wary of popups on your computer screen asking you to download software. Tech support from legitimate companies will not engage you this wayLocal phone numbers. Phone numbers can be spoofed. Be cautious of unfamiliar phone numbers even if they appear to be local.Sense of urgency. Like in the case of email or text phishing, vishing messages try to bait you with an urgent situation requiring you to take immediate action.Phishing tech support exampleWhat to do if you suspect a phone call is a phishing scamDont answer. Let calls from unfamiliar numbers go to voicemail.Block phone numbers on your mobile phone that call repeatedly for a fake business reason.Be wary of links sent to you from the caller even if they seem like they are from a well-known company. Clicking links may allow the scammer to install spyware to your computer or device.How to report fraudIf you suspect unauthorized activity on your account, call us immediately and contact your advisor.Call 800.862.7919 and request to speak to a representative.Mon-Fri 7 a.m. CT - 9 p.m. CTSat-Sun 7 a.m. CT - 7 p.m. CTWe're committed to protecting your informationAt Ameriprise Financial, were committed to protecting your online security. Our efforts are backed by our Online Security Guarantee, which covers 100% of the value of losses in your Ameriprise account(s) due to unauthorized online activity, if we conclude that losses were incurred from your account through no fault of your own.For more information about the steps you can take to help protect your account and personal information, review How you can protect yourself in the Ameriprise Financial Privacy, Security & Fraud Center.

In this article, well answer the following questions:What types of retirement income are taxable vs. non-taxable?What are some tax saving strategies to consider if Im still working but nearing retirement?What is an RMD, and how does the RMD tax penalty work?What are some tax-saving moves to make before I am required to take distributions?After I stop working and my income is potentially lower, how can I take advantage of 0% or low tax rates?How can I reduce my taxable income while supporting charitable efforts? What types of retirement income are taxable vs. non-taxable?TaxableNon-taxableSocial Security up to 85% of your Social Security benefits may be taxable depending on the amount of income you have from other sourcesSocial Security if your total modified adjusted gross income is below certain limitsWithdrawals of earnings and pre-tax contributions from IRAs, 401(k)s,* and other retirement plans *Special rules apply to appreciated employer securities in qualified retirement plansWithdrawals of after-tax contributions from 401(k)s, IRAs and other retirement savings plans (whether withdrawals are considered to be from after-tax or pre-tax contributions and earnings is based on the law and will depend on ordering rules applicable to the account)Pension paymentsQualifying withdrawals from Roth 401(k)s, Roth IRAs, and Roth 403(b)s What are some tax saving strategies to consider if Im still working but nearing retirement?Consider taking advantage of any pre-tax deductions available to you. Review your financial position and consider contributions to your 401(k) up to the maximum allowed, including any catch-up contributions for those over age 50. Also remember to take advantage of company benefits such as pre-tax payroll deductions for flexible spending accounts, transportation, supplemental insurance, etc.Review your assets to identify potential long-term capital gains (gains on assets held longer than one year), which are currently taxed at lower rates than short-term capital gains or ordinary income.Consider selling securities in non-qualified accounts that have a capital loss, which may be deductible to the extent of any realized capital gains plus ordinary income of up to $3,000 per year. Please note that for taxpayers whose income, including any realized gains, is below specific thresholds, the tax rate on long-term capital gains is zero percent. In this scenario, recognizing losses simply to offset long-term capital gains may not be advisable since no long-term capital gains tax may be due. Consult with your tax advisor.Approach charitable giving in the most advantageous way. For example, you might be better off giving appreciated stock that has been held more than one year to a charity, rather than a cash donation. You may get a tax deduction for the full fair market value of the asset, and an eligible charity could sell it without incurring capital gains tax on the appreciation.Think ahead to estate planning to potentially help reduce the impact of estate taxes, if applicable. Annual gifting is one way to reduce the value of your taxable estate. For 2023 the annual gift tax exclusion allows each donor to give up to $17,000 to an unlimited number of recipients without paying federal gift tax or using part of their lifetime exclusion. Over time, this is a strategy you might consider to remove assets from your taxable estate. What is an RMD, and how does the RMD tax penalty work?Across 401(k), IRA, 403(b) and 457(b) accounts, the IRS does not allow investors to maintain balances indefinitely. As such, federal law mandates that a minimum amount must be withdrawn each year, beginning at a certain age. This amount is a required minimum distribution, or RMD.Your RMD age depends on the year you were born. Please note, you dont have to take your first RMD until April 1 of the following year that you reach your RMD age. RMDs for subsequent years must be taken by Dec. 31.Year bornRMD ageJune 30, 1949 or earlier70.5July 1, 1949 to Dec. 31, 1950721951 1958731959Likely 73, but new legislation known as SECURE Act 2.0 assigned both age 73 and age 75 to individuals born in 1959. This will need to be clarified in the future.1960 or later75 If you do not take a distribution or if you withdraw less than the required amount, you may have to pay a penalty of up to 25% of the amount not taken. The penalty is reduced to 10% if the shortfall is corrected within a two-year window. What are some tax-saving moves to make before I am required to take distributions?Because many retirees are in a lower federal income tax bracket before they are subject to the required minimum distributions (RMDs) rule, they have an opportunity to manage the impact of taxes on their income.Here are few moves to consider:Converting taxable assets to a Roth IRA. If you expect to be in a higher tax bracket when your RMDs begin, consider converting pre-tax IRA investments to a Roth IRA before then. Think about your ability to pay the taxes on the conversion as well as your timeline before you would need to access the Roth IRA. Converting to a Roth IRA generates a tax bill, but it could be less expensive now because of your temporarily lower income tax bracket and the temporarily lower federal income tax brackets that are set to expire after 2025.Selling investments that have appreciated. The tax rate on long-term capital gains assets held beyond one year is based on your taxable income. If you have stocks, mutual funds, bonds or other taxable investments, it may make sense to sell appreciated long-term investments while your taxable income is lower. Some, or all, of net long-term capital gains may be taxable at the 0 percent capital gains tax rate if your total taxable income (including the realized gains) falls below the threshold for your filing status. Talk to your tax professional to see if this applies to you.Redeeming older savings bonds. While youre in a lower tax bracket, you may want to cash in US savings bonds issued when interest rates were higher. If you have bonds issued more recently, talk to your financial advisor about your options, given rising interest rates.Exercising employee stock options. If you own employee stock options, exercising them while youre in a lower tax bracket may benefit you especially if the current stock valuation is high.Revisiting your withdrawal strategy. Because withdrawals from tax-deferred accounts are neither penalized nor required between the time you reach  59 1/2 and your RMD age, you have more flexibility and control with your withdrawal strategy for retirement savings. Your financial advisor can help you create a plan for how much money to withdraw each year to meet your goals while managing your tax liability over the years. After I stop working and my income is potentially lower, how can I take advantage of 0% or low tax rates?During the time between when you stop working and when you begin taking required minimum distributions (RMDs), you could consider these opportunities with your financial advisor:Standard deduction shelter. If youre able to cover expenses with savings or other cash accounts, consider taking advantage of the standard deduction ($13,850 single; $27,700 married filing jointly in 2023). Depending on your other income, you could use the standard deduction to shelter up to the $13,850/$27,700 withdrawn from a taxable account such as a 401(k) or IRA every year without paying federal income tax on that money. Income above the standard deduction amount starts being taxed at the 10% rate. If you have started taking Social Security benefits those amounts should be considered in the calculation because, depending on the amount of Social Security benefits, some of those benefits may be taxable as well.0% long-term capital gains tax rate. While your income is lower before RMDs begin, you may be eligible to realize gains at the 0% long-term capital gains rate. Taxable income limits applicable to the 0% long-term capital gains are $44,625 for those filing as single and $89,250 for those who are married filing jointly in 2023. The calculation includes the net realized gain in determining the amount of taxable income used to determine what qualifies for the reduced rate. How can I reduce my taxable income while supporting charitable efforts?If youre interested in providing charitable support, donating to a non-profit organization with a qualified charitable distribution (QCD) can help you achieve that goal. A QCD is a nontaxable distribution from an individual retirement account (IRA) directly to an eligible charity. You must be at least 70.5 years old to take advantage of the QCD strategy.For taxpayers who have reached their RMD age, the QCD can be used as part, or all, of your RMD, removing the otherwise taxable RMD from your income, if done correctly. QCDs do not prevent a taxpayer from itemizing deductions, for the tax rules around QCDs talk to your tax professional.Play VideoSmart charitable giving from your IRALearn how you can use use your retirement assets to support causes that are important to you. An Ameriprise advisor can help you create a giving plan that takes many considerations into account. (3:01)You could also consider donating appreciated stocks or assets. If you donate appreciated stock that youve held for more than a year, then youll generally be able to claim a potential charitable tax deduction for the full fair market value of the stock. This approach saves paying the capital-gains tax that would result if you instead sold the stock and donated the cash. Tax CenterTaxes can impact your financial investments and savings outcomes, even outside of tax filing. Visit our Tax Center for helpful articles, FAQs and other resources. Tax Center The benefits of working with a financial advisor and tax professionalYour Ameriprise financial advisor can help you balance your financial priorities with tax implications by helping you create a plan that meets both your personal and financial goals. Because your financial advisor understands your finances, they may also be able to recommend a tax professional for you. Working together, your Ameriprise financial advisor and your tax professional can help structure your investments and retirement distributions for tax efficiency.

Choosing a loved one as your beneficiary could be considered an act of kindness for some. Learn more about the basics of beneficiaries, tax implications and other considerations that can help ensure your loved ones receive your assets.What is a beneficiary and why is it important?What's the difference between primary and secondary beneficiaries?Who can you designate as a beneficiary?Beneficiaries for retirement accounts, annuities, and life insurance policiesSpecial considerations for IRAs What is a beneficiary?A beneficiary is a person or entity, such as a trust or nonprofit, that you designate to receive the assets in your financial accounts when you die. For example, life insurance policies and retirement accounts allow you to designate beneficiaries.When deciding who you should designate as a beneficiary, consider family members, friends or business entities. Note that the account and subsequent funds are treated differently depending on your relationship with the beneficiary. For example, if you choose your spouse as an IRA beneficiary, they can move the assets into their own IRA account after your death. Non-spouse beneficiaries do not have this option.The importance of choosing a beneficiaryChoosing a beneficiary is a simple way to indicate who should inherit the funds or assets in your accounts without going through the steps of creating a will or estate document. However, be aware that the beneficiary/beneficiaries you name for each of your retirement plans, annuities, life insurance policies and other assets will receive the proceeds from that account even if your will outlines different instructions. To help ensure everything is in order, you should regularly review all your beneficiary designations with a financial advisor or estate planning attorney. Primary beneficiaries, secondary beneficiaries, and contingent beneficiaries whats the difference?Its important to understand the different beneficiary types: primary, secondary and contingent beneficiaries.Primary beneficiaries are your first choice to receive your retirement accounts or other benefits. If youre married, this will typically be your spouse.A secondary beneficiary and a contingent beneficiary are essentially the same. These beneficiaries will be named and awarded your retirement benefits and assets if your primary beneficiary doesnt survive you or disclaims the assets.Designate both primary and secondary beneficiaries and take special measures if youre assigning minorsIf your named beneficiary doesnt survive you, your funds could revert to your estate, resulting in probate court. To help prevent gaps in the beneficiary designation process and properly allocate all of your accounts, you should name both primary and secondary beneficiaries.Similarly, if youre designating children as your beneficiaries, your advisor or estate planning attorney can help you create a plan to ensure that your minor beneficiaries receive the funds when theyre supposed towithout unnecessary legal costs in the future. Who (and what) can you designate as a beneficiary and what are the outcomes?Your spouseA spousal beneficiary has more flexibility to delay taxed distributions and move assets to their own account. For 401(k) or pension plans, your spouse must be the primary beneficiary unless spousal consent is given to the naming of another beneficiary.Your children or other family members (excluding your spouse)You can assign someone else such as a child or other family member but it will require your spouse to sign away rights to be the primary beneficiary. Keep in mind that assigning a non-spouse as your beneficiary will not come with the same tax benefits and rollover options.A trustDesignating a trust as beneficiary provides control over how assets are distributed. But there can be tax implications and other considerations. Always seek advice from an experienced tax professional before choosing a trust as a retirement plan or IRA beneficiary.A charityChoosing a charity as a beneficiary is a simple process for those wanting to give back after they pass away. However, keep in mind that mixing charity and non-charity beneficiaries may change the options available to the non-charity beneficiaries of a retirement plan if the charity is not paid out in a timely fashion.Naming multiple beneficiariesHaving a hard time choosing between multiple beneficiaries? Fortunately, you can name more than one. If doing so, you will specify the amounts you want to allocate to each beneficiary. You can also choose to designate different beneficiaries within different accounts.In addition to naming beneficiaries in a will, its important that you record your beneficiary choices in each of your financial accounts. Note that if there is a discrepancy, the beneficiaries you note in those accounts will supersede who you designate in your will.Naming your estate as a beneficiaryNaming your estate as a beneficiary can feel more straightforward than naming specific beneficiaries for your major assets, but it has significant downsides.If you name your estate as a beneficiary, the assets in your estate must pass through probate before distribution. This could take a year or longer. Additionally, when an estate is in probate, distribution of the assets cant occur until creditors claims against the estate are resolved.However, if your named beneficiaries are individuals, trusts or charities, your assets will typically go to them directly, bypassing probate and creditors.Choose both primary and secondary beneficiariesKeep taxes in mind when choosing beneficiariesDon't choose your estate as a beneficiaryMinors require special considerations Retirement account, annuities, and life insurance policiesNot all accounts and assets are equal with regard to beneficiary designations. The responsibilities and outcomes for beneficiaries can be very different, depending on the type of account or asset:AnnuitiesAny annuity beneficiary can cash in the remaining funds left in an annuity after the owner passes away.Spouses can either cash in an annuity or keep it, with the original contract terms still in force.Non-spouse beneficiaries are required to take distributions.Annuity beneficiaries must pay income tax on the gains in the annuitythe difference between the principal paid into the annuity and the value of the annuity at the time the owner dies.Retirement accountsRetirement account assets are taxed when distributed from the plan to beneficiaries.*Spousal beneficiaries can roll assets over into a new or existing retirement account.Non-spouse beneficiaries are required to take distributions.Federal law requires that a spouse must be the primary beneficiary of a 401(k) account or pension account unless the spouse waives their right in writing.Life insurance policiesBeneficiaries receive the policy proceeds income tax-free.In certain states, a spouse may be legally entitled to life insurance benefits.Beneficiaries are paid in lump sums or in payments as requested by the account holder. *This does not apply to Roth IRAs and Roth 401(k) accounts. Because the initial account owner funded them with post-tax dollars, these accounts are not taxable for beneficiaries and earnings are tax free as well if the Roth account has been in place for 5 years. IRA stretch strategy in estate plansAn IRA stretch strategy allows an IRA beneficiary to take required minimum distributions (RMDs) from an inherited IRA after the owners death.For deaths prior to Jan. 1, 2020, non-spouse beneficiaries such as adult children who inherited retirement accounts can take required minimum distributions over their lifetime.Prior to the SECURE Act, beneficiaries who inherited retirement accounts (such as a traditional or Roth IRA) could take the RMDs over their lifetime. The SECURE Act changes that financial strategy for most non-spouse beneficiaries who inherit their retirement account on or after Jan. 1, 2020. Now, those beneficiaries must take the account proceeds and pay the corresponding taxes within 10 years of inheriting the account. This can be done with any number of distributions as long as the entire account is distributed by the end of the year that contains the 10th anniversary of the owners death.While the timeframe for using an IRA stretch is now shorter, this strategy can still help you pass substantial assets to your children or other family members. Additionally, some beneficiaries can still stretch their inherited IRAs over their lifetime, including:Spouse beneficiaries (spouse beneficiaries usually rollover to their own IRA).Non-spouse beneficiaries with disabilities or chronic illnesses.Non-spouse beneficiaries who are no more than 10 years younger than the IRA owner.Minor children of the IRA owner (up to the age of majority). A financial advisor can help you with your beneficiary designationDeciding how to pick beneficiaries for your retirement and other financial accounts is important. Ask anAmeriprise financial advisorto review your accounts and beneficiaries so you can feel more confident about the legacy youre leaving.

In this article:Recruitment fraudAdvance fee fraudRomance scamsDebit card fraudAdvisor imposter fraudInvestment fraudPhishing scams: Email, text and phone fraudHow to report fraudRecruitment fraudThe objective of this kind of financial fraud is to obtain money and/or personal, financial or account information from people who believe they are applying for a real job. The fraudster uses fake company job websites, career websites, social media posts and/or emails to lure applicants into providing money or personally identifiable information. Common types of fraudRed flags to watch forHow to protect against itJob postings on legitimate career websites Social media Fake employer website Recruitment emailsFraudsters request bank account information to pay for training materials, interview travel or direct deposit for paychecks They set up fake links for applicants to enter banking or other personal information They provide an applicant with a fake cashiers check (paper or digital) to purchase office equipment They promise a job without interviewsNever provide money Contact Ameriprise Financial at Ameriprise.recruiting@ampf.com if concerned about the legitimacy of any correspondence/interaction with AmeripriseAdvance fee fraudThis kind of fraud typically involves promising the victim a large sum of money in return for an up-front payment, which the fraudster requires in order to provide the large sum. If a victim makes the payment the fraudster either invents a series of new fees the victim must pay or simply disappears.Common types of fraudRed flags to watch forHow to protect against itLottery IRS Inheritance Vacation rentals Work from home/career opportunity Check overpayment LoanThe offer seems too good to be true Grammatical errors and typos Sense of urgency  scammers will pressure you and say the situation is very urgent to get you to act before you think Extreme confidentiality the scammer doesnt want you to tell friends or family Up-front payment asking for money is a major red flag Winning a lottery that you did not enterStop communication and block the sender Never share your account information, Social Security number, bank information or other sensitive financial information Do not respond to offers that sound too good to be true Be wary of a website or correspondence claiming to be from a U.S. government agency whose e-mail address does not end in .gov, .mil, or fed.us. Be aware of secondary scams that may include someone promising to find your scammer and get your money backRomance scamsRomance scams typically involve feigned romantic intention toward a victim, gaining their affection, and then using that goodwill to commit fraud.Common types of fraudRed flags to watch forHow to protect against itOnline dating Social mediaSomeone has claimed to have fallen in love with you quickly, often within 24-48 hours The person wants to immediately leave the online site to use instant messaging or email Their online profile seems to disappear as soon as you start talking to them They request to keep the relationship a secret They ask for money They claim to be in the military or work overseas and need money for flights home They plan to visit you, but an event prevents them from doing so, or they ask for money for travel costs They tell you they need money for medical issues (such as a sudden surgery), for themselves or a family memberNever share your account information, Social Security number, bank information or other sensitive financial information with anyone Avoid posting details such as your full name, date of birth, or home and work addresses on online profiles Never respond to any requests to send money, or have money transferred into your account by someone you don't know and trust Trust your instincts    if you think something feels wrong, it probably is Debit card fraudDebit card fraud involves the unauthorized use of funds through debit card transactions.Common types of fraudRed flags to watch forHow to protect against itLost/stolen card Compromised/counterfeit card Pre-paid debit card scams Multiple card entries for high-dollar orders Unauthorized purchases Multiple purchases of the same item International shipping An unsolicited phone authorization for a cash advanceEnroll in email and text alerts (Note: For Ameriprise accounts, register or log in and go to My Profile to enroll) Check account statements frequently Never share your PIN number with anyone Keep your card and PIN stored in a safe place Do not allow non-account holders access to your card or PIN  Advisor imposter fraudThe objective of advisor imposter fraud is to obtain money and/or personal, financial or account information from individuals who believe they are investing money. The fraudster uses fake company job websites, social media posts and/or emails to lure applicants into providing money or personally identifiable information. Common types of fraudRed flags to watch forHow to protect against itFake advisor website using the registered representative name as the domain for the website Picture purporting to be the registered representative Information about the registered representatives employment history, CRD numbers and/or exam history Request for contact form asking name names, email addresses and phone numbersSites may contain poor grammar, misspellings, odd phrases, or misuse of financial services terminology Emails with fake links for individuals to enter banking or other personal information Requests to send cryptocurrency or gift cards  Requests to send money payable to anyone other than Ameriprise Promises of guaranteed high investment returnsSearch for an Ameriprise Advisor using the tool Find an Ameriprise financial Advisor on www.ameripriseadvisors.com   Once you locate a financial advisor using the tool, you are provided a valid website, email address using ampf.com as the domain, and a phone number Reach out to the financial advisor using the information provided on our website to discuss investment opportunitiesInvestment fraud Investing scams targeted at retirees are becoming increasingly common because they are more likely to have large amounts of money saved, and get rich quick schemes can be appealing to those on a fixed income. The first step to protecting yourself or a parent is knowing what types of investment scams to watch for. Kind of investment fraudWhat is it Red flags to watch for Ponzi scheme (also known as pyramid scheme) A Ponzi scheme involves using money from new investors to provide a return often much higher than typical market gains to existing investors rather than using legitimate investment returns. Ponzi schemes fall apart when the money owed to the initial investors becomes greater than the amount that can be raised from new investors. Pyramid scheme operators may reach out via phone, email or word of mouth  If investment returns seem too good to be true, they probably are. If in doubt, request documentation such as a fund prospectus or the most recent annual report. These may help provide more context for investors or raise suspicions if they arent readily available for review Pump and dumpThis involves a group of people buying a stock then recommending it to thousands of investors. The result? A rapid spike in stock price followed by an equally fast downfall. The perpetrators who bought the stock sell off their shares at a huge profit when the price peaks. Pump and dump schemes often circulate on internet investing blogs via promotional emails Fraudsters are more likely to use smaller, lesser-known companies for this scheme because its easier to manipulate a stock when theres little or no information available about the company Off-shore investingThe internet has eroded barriers that once made it difficult for overseas fraudsters to prey on U.S. residents. Conflicting time zones, the cost of international telephone calls and differing currencies are no longer obstacles and international wire transfers can occur instantaneously. Phone calls are a common method of communication for the perpetrators, enabling real-time wire transfers to be made before victims have time to do any research Investment opportunities originating in a country that is outside the jurisdiction of local U.S. law enforcement agencies. Ask for legal documentation stating where the funds are registeredPrime bankUsed in an official capacity, this term describes the top 50 or so banks in the world. Real prime banks often trade high-quality, low-risk investments such as bonds. Fraudsters often claim investors funds will be used to purchase prime bank investments that they claim will generate significant gains The term prime bank is often used by perpetrators looking to lend legitimacy to their scheme, whereas real prime banks dont often use the term as they can rely on name recognition alone  Bulletin boards and newsletterInvestment boards have gone the way of online blogs, where nearly anyone can offer an opinion no matter how qualified they are or arent. While there may be some valid posts by financial experts, perpetrators often use boards to plant fake insider tips meant to drive stock prices up or down. Know that company employees can also use blogs to spread promotional information, and its not illegal for companies to use employees to write online newsletters to promote their stockFederal laws require that disclosures with legally required details about their offerings are located at the bottom of documents on company-generated information. Fraudulent newsletters are unlikely to provide such languagePhishing: Email, text or phone fraudPhishing scams are when a scammer sends a fraudulent message designed to trick you into giving them sensitive or financial information. Phishing scams can come in several different forms: email, text or phone calls. Kind of investment fraudWhat is it Red flags to watch for Email fraud Emails that are sent from unusual or look-alike email addresses or domainsSuspicious linksSpelling or grammatical errorsA sense of urgency to act immediately  If you think an email might be fraudulent, delete it and contact the company directlyRoll over links with your mouse to display the URL. If the URL looks suspicious, do not click on itVisit the company website to check for suspicious account activity Text message phishingUrgent or threatening messagesSuspicious links that do not appear to come from the company sending the textIf in doubt, do not respondDo not click on suspicious linksVisit the company website directly to check for unauthorized or unusual account activity Phone phishingRequests for personal informationRemote access requestsLet calls from unfamiliar numbers go to voicemailBlock phone numbers on your mobile device if they call repeatedly for a fake business reasonBe cautious of links sent to you even if the caller seems like they are from a well-known company. Visit the company website directly Reporting fraudHow to report email fraudIf you suspect youve received a fraudulent email, please:Forward it to us immediately at: anti.fraud@ampf.com.Do not remove the original subject line or change the email in any way when forwarding.Watch for an auto-generated reply to let you know weve received your email. If we confirm the email is fraudulent, we will take appropriate action immediately.How to report other types of fraudIf you suspect unauthorized activity on your account, call us immediately.Call 800.862.7919 and request to speak to a representative.Mon-Fri 7:00 a.m. CT - 9:00 p.m. CTSat-Sun 7:00 a.m. CT - 7:00 p.m. CT 

In this article, well cover:Different retirement income sourcesRetirement withdrawal strategiesCash flow in retirementEstimating the longevity of your retirement fundsWays to reduce expenses or increase income Your retirement income sourcesMost people in retirement plan to draw income from several sources. Even if you receive guaranteed income from both Social Security and a pension, it may not be enough to cover all your expenses and support your lifestyle. You may also need to draw on your savings, investments and supplemental retirement income sources to generate income.Government and guaranteed retirement income sourcesPersonal retirement savings and supplemental retirement income sourcesSocial Security. While it may not cover all your expenses, Social Security can provide some income. If you are not yet receiving Social Security, you can contact the Social Security Administration at www.ssa.gov to get started or to request an estimate of your future benefits.Pension plans. If you are fortunate enough to be covered by a traditional pension plan, you probably receive a steady income every month.401(k) or other workplace retirement planIRAsAnnuitiesSavings accounts and certificates of deposit (CDs)Stocks, bonds and other investmentsPart- or full-time workRental property  Understanding retirement withdrawal strategiesDo you have a strategy for withdrawing the money you need? Social Security and pensions may provide a fixed amount every month, but you'll need to know how to plan out your retirement income in order to make the most of your other assets throughout retirement. Consider working with a financial advisor to develop the right strategy for you.Timing when you withdraw money can have a significant impact on the taxes you pay.The order in which you withdraw money also matters. While everyone's needs are different, the general guideline for tax-efficient withdrawals is:Taxable accounts firstTax-deferred accounts nextTax-free accounts lastThis order may vary based on your individual goals and tax bracket, so it's wise to consult a financial advisor. Generating income in retirementOnce you have the timing and order for withdrawals down, you'll need a plan for generating cash flow while keeping some assets growing. Your financial advisor can show you how to provide retirement income using three basic elements:A cash account for day-to-day moneyA short-term reserve to cover emergencies and generate consistent incomeLong-term assets for potential growthCash accountA cash account is your primary access point for day-to-day money. It provides a convenient way to manage your income and expenses. Typically, a cash account includes checking, savings or money market accounts. Most assets in this category are liquid, so you can draw from them at any time without loss or penalty.Short-term cash reserveYou'll also need short-term assets to serve as a cash reserve and create consistent and predictable income. Short-term assets are investments that generally have guaranteed principal, such as:Certificates of deposit (CDs)Treasury billsMid-term assets such as bondsAs these assets mature, the money may be moved to your cash account. This way, your short-term cash reserve can serve as a reliable plan for income for several years during retirement, regardless of how your long-term investments are performing.Long-term assetsThe third element is long-term assets. Their primary goal is to provide growth that will help meet your financial needs throughout retirement as well as help build assets for your legacy. You may also draw from long-term assets to create income, which can be transferred as needed to your short-term reserves or directly to your cash account.Long-term solutions may include:Stocks and bonds held individually or in mutual fundsFixed and variable annuitiesReal estate and real estate investment trusts (REITs)Hedge funds and commodity investmentsLife insurance cash valueWhen you begin drawing on your assets, it's critical to remain aware of the effects of market volatility and inflation. Placing some of your assets in bonds and other fixed-income vehicles can help reduce your portfolio's overall volatility, while also mitigating the impact of inflation and stock market downturns. Estimating how long your money will last in retirementWith careful planning, your sources of income should be enough for a long, comfortable retirement. But if your expenses are more than you expected, or your investments haven't performed well enough, you may need to bridge a gap between your costs and income.While it's impossible to predict the future, there are tools that can help you make a reasonable estimate of how long your money will last. For example, by plugging your numbers into a retirement planning calculator, you can see how long your money will last in thousands of possible market scenarios. If you find that your money might run out too soon, you may need to make some adjustments. Strategies to reduce expenses or increase incomeFind lifestyle expenses that you can cut. Keeping an expense diary can help you evaluate your current expenses.Consider shifting money from low-interest savings accounts into investments such as long-term bonds that pay higher interest rates if you are comfortable with the additional risk.Reduce your mortgage and living expenses. Downsizing to a less expensive home or area can help you save on taxes, maintenance and other costs.Go back to work, at least part-time, to earn extra income and enjoy the benefits of remaining active.Consider a reverse mortgage, which allows you to borrow against the value ("equity") built up in your home if you are 62 or older.Using a variety of investments, an Ameriprise financial advisor can help you turn your assets into a stream of income that is designed to last throughout retirement. This includes choosing appropriate investments for your cash reserve and long-term assets, as well as setting up a central cash account for your day-to-day expenses.