What’s new with RMDs these days?

Below are some of the following pertinent changes to RMDs that were the result of the passing of the SECURE Act 2.0

RMD Age Extension
The age for RMDs was increased to 73 — Your first RMD must be taken by April 1 of the year you turn 73, and by December 31 each following year. Then, starting in 2033, SECURE 2.0 again pushes the age at which RMDs must start to 75.

Reduced Penalty
Under the old rules, if a retiree missed the RMD deadline, they would incur a penalty of 50% of the amount not taken on time. That penalty has been reduced in SECURE 2.0 to 25%, and in some cases, 10% if corrected within two years.

Pre-death Requirement Eliminated
Beginning in 2024, the pre-death requirement to take minimum distributions for Roth 401(k) accounts will be eliminated. This aligns with the treatment of RMDs for Roth IRA accounts, which don’t require distributions during one’s lifetime.

If you have any questions, don’t hesitate to reach out to our office at 815-842-4393.

Thinking of going paperless? We can help!

Visit www.netxinvestor.com and select Register Now to begin the process. Follow the step-by-step instructions below to set up your paperless account.

CLICK HERE

If you have any questions, don’t hesitate to reach out to our office at 815-842-4393.

Happy Thanksgiving!

This Thanksgiving, our Douglass Financial team is feeling extra thankful as we prepare to celebrate our 50th year in business.

Cambridge, our broker/dealer, was founded by Eric Schwartz, who had the vision of creating “something wonderful”, and here at Douglass Financial, you are part of our “something wonderful” as we walk side-by-side through life.

Thank you for being part of something wonderful during this, our 50th year of being in business and for empowering us to be able to embrace change, do what we love, stay true to our core values & treat people well.

Here is a sneak peek at a few events we are planning throughout 2024 to celebrate 50 years with you.

·       Community service events

·       Food Truck Fridays

·       Euchre Tournaments

·       Sweet treats and giveaways

Be on the lookout for more details via email, Douglass Financial Facebook page and our website:  douglassfinancial.com.

We look forward to celebrating you, our clients, who have made the past 50 years possible, and we look forward to many more years together of something wonderful.

Warm Thanksgiving wishes from all of us at             

Douglass Financial Services

The end of the year is approaching and it's a great time to take steps that can help improve your personal finances. Some items to consider:

• If you're not retired, review your contributions to retirement accounts such as IRAs.

• If you or your spouse is 72 or older, Required Minimum Distributions (RMD) must be taken before Dec 31. Otherwise, you could incur an additional 50% penalty tax.

• Make charitable contributions that you want to be able to claim as a deduction on this year’s tax forms.

• Compare this year's spending against your budget and make any necessary adjustments for next year.

• Do you expect to earn more next year? Consider putting all or part of your expected increase into savings.

• Check your asset allocation and make any necessary changes.

• Take some time to define your family's financial goals and concerns for next year:

• Do you want to save more for retirement? Or for children/grandchildren's college?

• Is a particular budget category consistently over-budget?

• Do you expect any unusually large bills next year such as college tuition or a new roof?

Taking the time to address these items now can help make next year a success.

In September of last year, you were reminded of the open enrollment period for seniors to review their prescription drug coverage for 2023. In October you will be eligible to review your options for 2024.

If you currently have a Part D or Medicare Advantage plan, your company will be sending you 2024 information that will explain the benefits and rates for the coverage you had this year. This should arrive in late September.

My recommendation is that you review that packet to determine if it is to your advantage to remain with the plan you currently have or consider other options either with your existing company or consider another company's plan that would be more suitable for you. Do not assume the plan you had this year will be the most appropriate one for 2024.

Open enrollment begins October 15, however, you may actually start reviewing your options on the first day of October. Make sure you take advantage!

by Mark Post