Financial Advice

Year End Deadlines for Tax Savings

by Platt Wealth Management | Dec 4, 2019 | Financial Advice

Check with us about these tax savings deadlines.

Deadline for Required Minimum Distributions (RMDs):

Although not a tax savings, we still include RMDs in this checklist to make sure you take your distribution before the end of the year. Not taking your RMD can have serious tax consequences with a penalty of 50% on the shortfall.

Clients who are 70½ or older must take an RMD from their IRA and/or their Qualified Retirement Plan (QRP) for the 2019 tax year. All RMDs must be withdrawn by December 31, 2019, except those for clients who are eligible to defer their first distribution until April 1, 2020. Distribution forms must be submitted by Wednesday, December 16, 2019.

Deadline for Roth IRA Conversions:

You might want to talk to us about your Roth IRA conversions. If you haven’t completed any conversions this year, please contact us as soon as possible. Clients must submit a Roth Conversion Form by December 16, 2019. Forms received after that date will be processed on a best-efforts basis.

Remember that under current tax laws, Roth conversions can no longer be undone through recharacterizations. If you would like to know more about how Roth IRA conversions can increase tax savings, please give us a call.

Deadline for Establishing a 2019 QRP (including 401(k)):

Business owners can capture great tax savings by opening a Qualified Retirement Plan. Qualified Retirement Plans for 2019 must be established by December 31, 2019. Paperwork must be received by December 16, 2019.

Charitable Gifting:

This is the season for caring and giving. Charitable gifting tax strategies are a wonderful gift for the giver and the receiver. Forms for Qualified Charitable Distributions from IRA accounts must be received by December 16, 2019.

Contributions to Donor Advised Funds must be completed by December 31, 2019, so please contact us by December 16, 2019, if you require assistance. You should recommend grants from your Donor Advised Fund as soon as possible if you want the charity to receive the donation before year end. Click here to understand more about tax savings through charitable giving.

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Platt Wealth Management is a fee-only advisor helping clients acheive their financial goals. We offer customized financial advice, financial planning and investment management. If you would like to learn more about our services or get in touch for a consultation to review your current portfolio please give us a call us, 619.255.9554.

We provide stand alone scenario based financial plans for a flat fee, retainer based and assets based investment management or a combination of both for full wealth management services.

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Increase Your Retirement Savings in 2020

by Platt Wealth Management | Dec 4, 2019 | Economic News, Financial Advice, Financial Planning

Higher contribution limits in 2020 mean more retirement savings for you.

If you recently hit 50, you might have realized that your retirement savings is not quite where you want it. You’re not alone. Many people come to us for a financial plan worried that they don’t have enough retirement savings to keep the lifestyle they want in retirement.

Luckily, the IRS seems to know this also and recently announced higher contribution limits for qualified retirement accounts. This can mean more retirement savings for you. Next year, the contribution limits for qualified retirement plans including 401(k)s and 403(b)s are increasing from $19,000 to $19,500. If you are 50 or older, the catch-up contribution is also increasing by $500, from $6,000 to $6,500, so you can make a total contribution of $26,000 in pre-tax or Roth contributions. If you are turning 50, you are now eligible to boost retirement savings through catch-up contributions. You can make catch-up contributions at any time during the year that you turn 50 (you don’t have to wait until you actually turn 50).

IRA contribution and catch-up limits are staying at the same levels for 2020, with $6,000 per person, plus an additional $1,000 catch-up contribution for people that are 50 and older.

Are you on track for retirement?

Making sure you will be ready for retirement can be overwhelming. Funding your retirement accounts over the years is just one part of your journey to the retirement of your dreams. A Certified Financial PlannerTM can help you navigate the complexities of financial planning. Talk to a Financial Planner>

Health Savings Accounts

The contribution limits for Health Savings Accounts (HSA) are also increasing. Individuals can contribute $3,550 next year (up $50 from this year), and families can contribute $7,100 (a $100 increase). The catch-up contribution for those age 55 years and older remains at $1,000.

Business Owner Retirement Savings

The limit for SEP IRAs will be $57,000; since SEP IRAs are considered an employer plan, there is no catch-up contribution. SIMPLE IRA limits have increased by $500 from $13,000 to $13,500. The over-50 catch-up contribution remains at $3,000 for 2020, for a total contribution of $16,500.

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Platt Wealth Management offers financial plans to answer your important financial questions. Where are you? Where do you want to be? How can you get there? Our four-step financial planning process is designed to be a road map to get you where you want to go while providing flexibility to adapt to changes along the route. We offer stand alone plans or full wealth management plans that include our investment management services. Give us a call today to set up a complimentary review. 619-255-9554.

Medicare Premiums and IRMAA Surcharges: Big Increases with a Tiny Bit of Good News

by Platt Wealth Management | Nov 18, 2019 | Economic News, Financial Advice

Medicare Premiums for 2020 Announced

The Centers for Medicare and Medicaid Services announced that Part B premiums will be increasing next year by $9.10 per month. That’s an increase of 6.7%, which is a big jump compared to the modest 1.1% increase last year. Part B base premiums will be $144.60 per month, up from $135.50 in 2019. The IRMAA (Income-Related Monthly Adjustment Amount) surcharges for higher-income beneficiaries are also going up.

The IRMAA surcharge is based on your Modified Adjusted Gross Income (MAGI), which is your Adjusted Gross Income plus tax-exempt interest. The income levels are based on your last filed tax return, so there is a two-year look back period.

There are a few bits of good news amid the increases though. Beginning in 2020, all but the top IRMAA income tier will be indexed to inflation. The top income tier (above $500,000 for individuals and $750,000 for those Married Filing Jointly) will be indexed to inflation beginning in 2028. The income tiers have not been adjusted since 2011, so more people have been subject to IRMAA surcharges over the years. Indexing the tiers with inflation could lower the number of people paying the surcharge. Another bright spot is that Part D IRMAA surcharges actually decreased slightly from 2019 levels.

If you have had a life-changing event that caused your income to decrease, like a change in your work or marriage status or the involuntary loss of income-producing property, you can appeal the surcharge. You can submit a Medicare IRMAA Life-Changing Event form or visit a Social Security office to provide documentation of the event that caused your income to decrease.

IRMAA Resources

The government Medicare website provides more information about IRMAA surcharges. You can also call Medicare at 1-800-MEDICARE to learn more.

If you have had a life-changing event and need to appeal your IRMAA surcharges, complete and submit Form SSA-44.

You can also call your local Social Security office to schedule an interview to discuss your situation and see what information you will need to provide.

Changes to Your IRMAA

Medicare

After reading through the information, you might still have questions. Call us. Or register for our upcoming workshop.

Your IRMAA situation can change every year, so even if you are subject to it one year (for example, your income spikes because you sold your home or business), you may not have to pay it the following year.

It can be important to manage your retirement income to control your IRMAA tier, so consider using Roth IRAs and Health Savings Accounts strategically to supplement income without increasing your MAGI.

Qualified Charitable Distributions from your traditional IRA can also help control your income.

What options are right for you?

We’ve heard many of our clients’ concerns about how to make the best choices for Medicare and when to file for Social Security. These decisions can be overwhelming, and government websites do little to help break down the information in a meaningful and easy way.

•   Do I need Medicare if I’m still working?
•   Should I make changes during Medicare’s Annual Enrollment Period?
•   What’s IRMAA and how can I avoid it?

Learn More

Get your questions answered at our biannual workshop.

You may still need help optimizing your Medicare and Social Security. We understand the need for clarity so we hold an biannual workshop to answer your questions.

Please take a moment to check out our video showing our past workshop held at Ballast Point Miramar.

The Presenters

Tracy Burgett

platt wealth management

Tracy is the Director of Financial Planning at Platt Wealth Management, where she creates customized financial plans. She specializes in retirement planning, Social Security and Medicare planning.

Diane Gaswirth

United health care

Diane Gaswirth helps consumers simplify Medicare to make the choices best for their healthcare. She is an accomplished leader in health plan selection at UnitedHealthcare.

Where is the Workshop?

To help make these confusing topics easy to digest, we host our workshops somewhere fun. Our last workshop was held at Ballast Point Brewing Miramar where participant enjoyed the open patio and delicious award-winning beer.

What better place to talk over Medicare and Social Security than over tasty pub

snacks with informed experts? Get your facts and your fun together.

Many participants extended the afternoon into evening with a complimentary tour of the Ballast Point brewery.

30 minute tour.
150-barrel brew house, cellar, lab.
Guided tasting.
Financial knowledge and a commemorative beer glass.

Sign up here to receive an invitation for our next Medicare and Social Security Workshop.

Reserve Your Spot

Join us for a fun afternoon. Get your questions answered while sampling a selection of hors d’ oerves and drinks. Let us know if you would like to bring a friend or family member in the guest box.

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Pumpkin Spiced Lattes and Medicare Open Enrollment!

by Platt Wealth Management | Oct 4, 2019 | Financial Advice, What's New

It’s that time of year again.

Autumn is here with cooler weather, college football, and the excitement of Medicare’s annual Open Enrollment Period. Beginning October 15, people already enrolled in Medicare can make certain changes to their coverage. Open enrollment runs through December 7, and during this period you can:

Switch between Original Medicare (Parts A&B) and Medicare Advantage (Part C).
Switch between Medicare Advantage plans.
Join a Medicare prescription drug plan (Part D), although late penalties may apply if you didn’t enroll when you were first eligible.
Switch prescription drug plans or drop coverage completely.

This is your opportunity to evaluate if your current plan still provides the coverage that you need. Every year, drug plan formulary lists can change, so make sure that your plan covers the drugs that you take regularly. Policies also change annually with new premiums, deductibles, and other costs, so you can check to see if you are getting the best price for your coverage.