Share to Twitter Share to Linkedin The Secure Act 2.0 brought about several consumer-friendly policies that should help people save more over time, as well as more flexibility when it comes to how funds in a 529 college savings plan can be used. Specifically, families will soon be able to move up to $35,000 from a 529 college savings plan into a Roth IRA for the account beneficiary, although annual contribution limits apply. This becomes an option for savers in 2024. Because annual contribution limits come into play here, maximizing the cap on this benefit will take several years. In fact, the Internal Revenue Service (IRS) has set the annual contribution limit across all IRA accounts at $6,500 for 2023 (unless you're 50 or older, in which case you can contribute up to $7,500 per year). ADVERTISEMENT The 529 plan making the transfer must also be open for at least 15 years, so it's not possible to open an account, fund it quickly, then move money … [Read more...] about Prevent State Tax Issues Before You Move 529 Funds To An IRA
Low income housing tax credit
Know The Red Flag In Your Portfolio
Share to Twitter Share to Linkedin Travis Forman, Portfolio Manager at Strategic Private Wealth Counsel - Harbourfront Wealth Management . Not to alarm you, but there may be a red flag in your portfolio. You might have a sound investment plan and be adequately diversified, but how are you protecting your purchasing power? Do you have inflation-fighting assets in your portfolio? Whether we acknowledge it or not, we are in an era of higher inflation. Just a couple of years ago, inflation was low, and interest rates were at rock bottom. As we know, this has changed significantly since then. While peak inflation of 9.1% in the United States and 8.1% in Canada may no longer be a reality, a swift return to the days of 2% inflation is also unlikely. If you need to hear it from someone other than me, the multinational investment corporation BlackRock agrees. In its 2023 outlook, the firm stated, “we think we are going to be living with inflation … we see … [Read more...] about Know The Red Flag In Your Portfolio
Financial Planning For A Divorce
Share to Twitter Share to Linkedin There are many financial planning considerations before, during, and after a divorce. A key part of the process from a financial standpoint is dividing the assets. Generally, couples split the value of their assets 50-50 (though not always). But that doesn't mean the actual assets are just split down the middle, and some assets are much more favorable from a tax perspective than others. Once the divorce is finalized, a crucial (but often overlooked) part of the process is updating estate documents and beneficiary designations. Here are some key considerations when financial planning for a divorce. Money and divorce This article solely focuses on some of the general financial planning aspects of divorce and is not personal legal, tax, accounting, or financial advice. When getting a divorce, it's important to assemble your team of professionals. During the divorce, your attorney is the star quarterback. … [Read more...] about Financial Planning For A Divorce
In Healthcare’s Game Of Monopoly, One Player Will Control The Board
Share to Twitter Share to Linkedin In healthcare, as in life, people devote a lot of time and attention to the way things should be. They’d be better off focusing on what actually could be. As an example, 57% to 70% of American voters believe our nation “should” adopt a single-payer healthcare system like Medicare For All. Likewise, public health advocates insist that more of the nation’s $4 trillion healthcare budget “should” be spent on combating the social determinants of health: things like housing insecurity, low-wage jobs and other socioeconomic stresses. Neither of these ideas will happen, nor will dozens of positive healthcare solutions that “should” happen. When the things that should happen don’t, there’s always a reason. In healthcare, the biggest roadblock to change is what I call the conglomerate of monopolies , which includes hospitals , drug companies , private-equity-staked physicians and commercial health insurers . These … [Read more...] about In Healthcare’s Game Of Monopoly, One Player Will Control The Board
Can You Use Your 529 To Take A Cruise?
Share to Twitter Share to Linkedin “Has anyone had clients actually do the apocryphal story of a client using a 529 to go on a continuing education cruise of Europe?” asked one of my peers in a recent forum, “Trying to figure (this out) after client asked.” Can You Get An Education At Sea? There are a host of companies offering education opportunities in combination with a cruise. Continuing Education, Inc. claims to have, “over 100 Continuing Medical Education and Dental CE cruise conferences.” This allows medical professionals to fulfill the requirements of their professional designation in combination with a vacation. There’s also University at Sea, CME Away at Sea, AEA Optometric Cruise Seminars, and many, many more companies that would gladly give a professional continuing education classes and an excuse to vacation. However, these are all continuing education classes, not college courses from an accredited school. These are for-profit companies … [Read more...] about Can You Use Your 529 To Take A Cruise?