- Social Security: It’s more than a monthly check. As you approach retirement, you are likely to face a host of decisions that could significantly impact your financial future. One of the critical decisions you’ll make is filing for your Social Security benefits, a choice that plays an important role in your broader retirement income plan. Social Security is designed to provide older Americans and disabled persons with a portion of the financial support needed to cover essential retirement expenses. The program offers many benefits, such as:
– Lifetime retiremor RMD (Required Minimum Distribution) from 70½ to 72.
- Secure Act 2.0 raises this age for mandatory 401(k) or IRA withdrawals from 72 to 73 by 2023, and up to 75 by 2033, which means you can hold your money in a growth or preparatory situation even longer when appropriate.
- Medicare has a simple way of encouraging you to enroll on time for Part B or Part D when you become eligible.It charges you late fees and those fees add-up quickly. The longer you wait to enroll the bigger the penalties become. Make sure you talk to an advisor that knows the rules and the exceptions to the rules, it could save you money in the long run.
- Who inherits your assets if you have no will? Well, it depends. When you die without a will, you are considered to have died “intestate” in the State of Florida. Every state is different. Florida statutes dictate if you died without a will your spouse would receive 100% of the proceeds if you had no children. The same is true if you are survived by a spouse and children, who are children of both you and your spouse. It gets more complicated with second marriages and stepchildren. It is important to know the laws of your state and plan accordingly.
- New 401K rules enacted: The Secure Act 2.0 mandates that old 401K and 403B plans have automatic enrollment into their plans beginning with contributions starting at 3% and not more than 10% of their compensation and automatically increase contributions 1% per year up to a maximum of 10 to 15%. However, participants can still opt out of existing plans. Businesses with 10 or fewer employees, new businesses in
existence for less than three years, church plans, and governmental plans are exempt from these rules.
Recommendation: Secure an advisor, understand these concepts, and let him or her guide you to a worry free and successful retirement!
First Benefits Group Inc is neither a legal nor accounting firm, and does not render legal, accounting, or tax advice.
You should contact an attorney or CPA if you wish to receive legal, accounting, or tax advice.