Market Street Wealth Management Advisors

TRUE or FALSE . . . Healthcare costs are one of the largest expenses most retirees will face. 💯 It is TRUE! Healthcare is often a significant and inadequately projected expense. Many people wait until retirement to understand their healthcare options, often because they’re accustomed to employer-sponsored plans. This delay can lead to inadequate savings and uncertainty about covering these significant expenses. 💡 Key Considerations, according to a 2024 study by Fidelity: • Healthcare costs continue to outpace general inflation, driven by longer lifespans, medical advancements, and increased demand. • Medicare starts at age 65, but it has gaps that necessitate considering supplemental insurance for broader coverage. • Home healthcare and nursing facilities can be costly. Strategies that anticipate extended care can help. • Documents like a medical power of attorney and living will are critical to managing healthcare decisions and letting your wishes be known. Our Take: Healthcare options are often complex and confusing, so early preparation is key. A well-structured strategy can help you remain prepared and informed throughout retirement. #RetirementStrategy #HealthcareCosts #FinancialWellness #Medicare #PersonalFinance

🎓 Attention parents with multiple 529 accounts! We recently encountered a situation that serves as an important lesson: A parent used funds from their daughter's 529 to pay for their son's college expenses, assuming the accounts were interchangeable. However, the daughter's account was overfunded, while the son's was underfunded. The result? The withdrawal was treated as a non-qualified distribution! 🔑 Key takeaway: While you can transfer funds between 529 accounts or change beneficiaries, consider working with a financial professional who understands 529 plans and can help navigate these complex rules. 🎓 #CollegeSavings #529Plans #FinancialTips A 529 plan is a tax-advantaged college savings plan. Before choosing a plan, it's important to consider not only the state tax treatment but also any associated fees and expenses. Availability of a state tax deduction will depend on your state of residence, as state tax laws and treatment may vary from federal tax laws. And as this parent learned, if you make non-qualified distributions, earnings will be subject to income tax and a 10% federal penalty tax. If you have more questions, a tax, legal, or accounting professional may be able to provide you with some real-life advice.

The end of the year is approaching fast! As always our team has been busy helping clients review 2024 and seek opportunities to make tax smart moves before year-end to help start 2025 in a good place. With the upcoming holidays, our team is looking forward to spending quality time with their loved ones. As a reminder, our office will be closed on the following dates: December 24 December 25 December 31 (closing at noon) January 1 We wish everyone a wonderful and safe holiday season! #officehours #happyholidays

🎯 As the year winds down, here are 7 year-end tax ideas to consider: 1️⃣ Check your retirement contributions to your 401(k), IRA, and HSA limits. Are you hitting the limits? 2️⃣ Charitable giving: Have you considered donating appreciated securities and other options? 3️⃣ Investment portfolio review: Talk with your financial professional about any rebalancing that may be needed and if there are any tax-loss harvesting opportunities. This post is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals before modifying your tax strategy. 4️⃣ Business owners: Now is a great time to review estimated tax payments and determine whether you need to purchase any equipment. Your tax professional may also help here. 5️⃣ Estate management check-up: Have you utilized annual gift exclusions? Is your trust funding on track? 6️⃣ Roth conversion opportunities: Have you analyzed potential long-term tax benefits? 7️⃣ Review required minimum distributions (RMDs): Don't forget inherited accounts! Here are some housekeeping items to remember: 1️⃣ Once you reach age 73, you must begin taking required minimum distributions (RMDs) from your 401(k), IRA, or any other defined contribution plan in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. 2️⃣ If you spend your HSA funds on non-qualified expenses before age 65, ordinary income taxes may apply, and it may result in a 20% penalty. But, after age 65, you may be required to pay ordinary income tax if the funds are used for non-qualified expenses. Also, keep in mind that contributions are exempt from federal income tax but, in some cases, are not exempt from state tax. 3️⃣ To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals. 🕒 Questions? Your financial future is worth the conversation. #FinancialStrategy #YearEnd #TaxManagement

📢 Important update: The IRS has finalized regulations on the 10-year rule for inherited retirement accounts. Key points to understand: 1️⃣ Two versions of the rule: ➖ If the account owner dies before the Required Beginning Date (RBD), beneficiaries have 10 years to distribute the entire account. ➖ If death occurs after the RBD, beneficiaries must take annual distributions AND empty the account within 10 years. 2️⃣ The RBD is generally April 1st, following the year the account owner turns 73. 3️⃣ Good news: There's a penalty waiver for missed 2024 distributions. Potential strategies to consider: 👉 Leaving retirement funds to beneficiaries in lower tax brackets 👉 Converting traditional IRAs to Roth IRAs 👉 Using Qualified Charitable Distributions for those over 70½ 👉 Beneficiaries: Think about timing your distributions over the 10-year period to optimize your tax situation. These changes may impact your long-term financial and estate strategies. It might be time to review your approach to see if it aligns with these new regulations and optimizes your legacy goals. Some housekeeping items to remember: Once you reach age 73, you must begin taking Required Minimum Distribution (RMDs) from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals. Questions about how this impacts your specific situation? Let's discuss. 👇 #RetirementStrategies #EstateManagement #FinancialFuture #Taxes

🎁 Did you know last year, on Giving Tuesday, U.S. Donors gave $3.1 billion, according to a 2024 report by Neon One? 1️⃣ What is Giving Tuesday? ▪️ A global movement celebrating generosity ▪️ Follows Black Friday and Cyber Monday Encourages giving back to causes you care about 2️⃣ Why it matters: ▪️ Neon One said 34 million adults participated last year ▪️ Supports countless charities and communities worldwide Giving Tuesday reminds us of the power of collective generosity. Questions about how to incorporate charitable giving into your financial strategy? 💬 Let's chat #GivingTuesday #Charity #MakeADifference

🤔 Did you know there are TWO different Medicare enrollment periods? Many don't! Here's what you need to know: 1️⃣ Annual Election Period (AEP): Ends Dec. 7, 2024 🚨 ▪️ For ALL Medicare beneficiaries ▪️ Change plans, switch between Original Medicare and Medicare Advantage ▪️ Changes effective January 1, 2025 2️⃣ Medicare Advantage Open Enrollment (MA OEP): Jan. 1 - Mar. 31, 2025 🚨 ▪️ ONLY for those already in Medicare Advantage plans ▪️ Switch plans or return to Original Medicare ▪️ Changes effective the following month What you should do: ✅ Review your current coverage NOW ✅ Compare plans on Medicare.gov ✅ Make changes during AEP if needed ✅ Consider using MA OEP as a second chance if you're unhappy with your Medicare Advantage plan Take action before December 7 to help align your coverage for your needs in 2025. Questions about how Medicare fits into your financial picture? 💬 Send a message before the deadline! #MedicareEnrollment #HealthInsurance #RetirementStrategy

What cities in the U.S. have the most millionaires? According to a report from Henley & Partners based on data through 2023, here are your top 5 cities! 1️⃣ New York City: 349,500 millionaires, 60 billionaires! 🍎 2️⃣ Bay Area: 305,700 millionaires, 68 billionaires! 🌉 3️⃣ Los Angeles: 212,100 millionaires, 43 billionaires! 🎬 4️⃣ Chicago: 120,500 millionaires, 24 billionaires! 🌬️ 5️⃣ Houston: 90,900 millionaires, 18 billionaires! 🚀 But here's the kicker: We're seeing a "millionaire remix." 🎵 These areas saw explosive growth in the millionaire population from 2013 to 2023: 🔥 Austin: 110% increase 🔥 Miami: 78% increase 🔥 Dallas & Washington D.C.: Both saw a 75% increase Why should you care? 1️⃣ Shifting wealth patterns can impact local economies and real estate markets 2️⃣ Opportunities might be emerging in unexpected places (Hello, Austin!) #WealthTrends #FinancialStrategies

Today we gather with loved ones and reflect on the things we’re most grateful for. From the health of our loved ones to the support of our families, friends, and colleagues, there’s so much to be thankful for. As we look back on the year, we’re grateful to our clients for letting us be part of their financial journeys. Here’s to a future filled with hope and prosperity for all. From our families to yours, we wish you a very Happy Thanksgiving. As a reminder our offices will be closed Thursday, November 28th and Friday, November 29th.

Did you know that for every $100 spent at a locally owned business, $68 recirculates and remains in the local economy, according to a 2024 report by Sustainable Connections? By contrast, the study found that only $43 stays local when spent at a national chain. As we gear up for the holiday shopping season, remember that Black Friday is just around the corner on November 29, followed by Small Business Saturday on November 30! This weekend presents an opportunity to support our local economy. Why not kick off your holiday shopping by grabbing a coffee from that local café, picking up a unique gift from the boutique down the street, or trying out that restaurant you’ve been meaning to visit? What’s your favorite local small business? Give them a shout-out in the comments! #BlackFriday #SmallBusinessSaturday #ShopLocal #CommunityMatters