The days are getting longer and warmer and I’ve even seen some evidence of enthusiastic flowers actually breaching through the soil. The market has been crazy lately with the influence of the Coronavirus, election, etc. so moving some money to cash might be indicated. If you’re not sure or need help let’s sit down and evaluate your situation. Following are some ideas and tidbits of information for this month:
2019 IRAs – If you haven’t filed your taxes yet the IRS will allow contributions to be made for 2019 up until the time you file or April 15th, whichever is later. The maximum contribution is $6,000 ($7,000 with an over age 50 catch-up) again this year. Contributions must come from earned income so if you’re married and your spouse doesn’t have enough earnings, you can make a spousal IRA on his/her behalf. Don’t forget that the pre-tax or traditional IRA is an above-the-line deduction which lowers your taxable income if you feel your tax hit this year is going to be too much. However, better to take a little hit this year and then manage your withholdings better for 2020 than to deplete your emergency to fund an IRA.
SECURE Act of 2020 – Touted as perhaps the largest retirement planning legislation since the Pension Protection Act of 2006, this new act involves 29 new provisions or major changes for retirement plans after 2019. Some of the top changes are as follows:
- Post-Death Minimum Required Distributions Accelerated—Elimination of the Stretch IRA (with exceptions)
- Eliminate Age Limit on IRA Contributions (and Deductions) – use to be 70 ½
- Lifetime Minimum Required Distributions (RMDs) Delayed – use to be 70 ½ , now 72
- Expanded Small Employer Plan Tax Credits, up to $5,000
- Small Business Owners Can Join to Form Multiple Employer Plans (MEPS)
For the sake of brevity I essentially just listed some top ones above, but as you can imagine there is much more to say about each. Be aware, though, that this legislation has passed and even if the new provisions don’t affect you right now, you may know or hear of someone that might benefit.
AFI 30-3009 AF Personal Financial Readiness (PFR) Training – The Air Force is committed to providing the training and information necessary to maintain mission focus and readiness by maximizing members’ financial stability. This AFI was mandated last year and the required training is being implemented this year through various avenues. The training is based on “touch points” in a military person’s career such as deployment, PCS, marriage/ divorce, promotions, etc. Members will be sent an email notification that they have experienced a touch point by DEERS/MyPers or other AF system and it will be the responsibility of the member to obtain the required training. Some of the mandatory touch points are addressed/provided in existing training such as Student Flight and BMT. For those not embedded in existing training, MyVector and other online systems contain the training and as your base PFC, I will also provide them as needed, either in individual or group settings. The briefings will start soon so begin checking for upcoming sessions. All of the drill briefings I will provide will usually be in the FSS training room, generally Sunday afternoons from 1300-1400 based on availability. For the full time members, the same briefing will also be given the 3rd Thursday of the month from 1130-1230 in the FSS location. Monitor the base calendar for the latest information on upcoming briefings being provided.
If you have any questions on the above or another topic, call, text or email me for an appointment!
“Beware of little expenses, a small leak will sink a great ship.” – Benjamin Franklin
“If all of the economists were laid end to end, they’d never reach a conclusion.”
– George Bernard Shaw
Randy Gerard, C 573-415-6934 or O 816-236-3939, #6, email@example.com.