SWFG: Things to Consider in the New Year

With the changes of a New Year, what financial topics come to mind for you?

The New Year brings a moment for many people where they pause and reflect on the previous year, as well as create a new “game plan” for how they are going to tackle 2023.

These topics are often fresh in mind for Stribling~Whalen Financial Group and our clients as we begin the New Year:

1. New Job
   1. Have you had a job change in the past year, or are you expecting to have one in 2023?
   2. Benefits – what benefits does your new job offer in regard to health plans, retirement plans and disability insurance?
   3. Retirement Plans – do you have a 401(k) with your previous employer that you may want to consider rolling into an IRA? Maybe you want to roll it over into your new employer’s plan? You can also leave it with the previous employer, but don’t forget it is there!
2. New Children
   1. Has a new child entered the picture within the last year, or is one on the way? There is no doubt the amount of joy children bring into your lives.
   2. College Education – how are you going to pay for their education?
   3. Insurance – have you considered the increased need for life insurance on you and your spouse?
   4. Estate plans – having children opens many conversations on what you would like to happen should something happen to you. Have you made an appointment with an estate planning attorney?
   5. Health insurance – a new child is a qualifying event and allows you to adjust your health insurance within a 60-day period of your child being born.
3. Contribution Limits – Retirement Plans & Health Savings Accounts
   1. These amounts change most years, and here are some of the amounts you should consider in 2023:

4. Tax Brackets & Standard Deductions
   1. Because these numbers are specific to each person or family, here are the links to view the 2023 amounts:
      1. https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023
5. Social Security, Medicare & IRMAA Surcharges
   1. The Social Security Cost-of-Living Adjustment (COLA) for 2023 was 8.7%. You should see your benefits amount increase by this percentage in the New Year.
   2. The standard Part B premium for 2023 has decreased to $164.90, a 3% decrease from 2022. However, if your Modified Adjusted Gross Income (MAGI) is a certain level, you may have Income Related Monthly Adjustment Amount (IRMAA) surcharges to this premium amount.
      1. https://www.ssa.gov/benefits/medicare/medicare-premiums.html
6. Required Minimum Distributions (RMD)
   1. If you have already begun taking RMDs from your 401(k) or IRA the required amount you will have to withdraw will change each year.
   2. If you have not begun taking RMDs from your 401(k) or IRA, Secure Act 2.0 has pushed back the age you have to begin taking them to age 73.
7. Qualified Charitable Distributions (QCD)
   1. If you are over the age of 70 and you give charitably to a 501(c)(3), giving through your IRA is a very tax efficient way to do so. If you give directly from your IRA as a QCD, that amount of money given will not be included in taxable income. Alternatively, if you withdraw the money and give cash, the money withdrawn will be included in taxable income for the year.
   2. The 2023 limit is $100,000.

As always, thank you for the introduction to your friends and family that so many of you have made. We are honored to serve you! As a service to our clients, we are happy to act as a sounding board for your friends and family. If any of them should need a second opinion on their financial situation, introduce them to www.striblingwhalen.com or call us at 678-989-0048.

Disclosure: RMD’s are generally subject to federal income tax and may be subject to state taxes. Consult your tax advisor to assess your situation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.