Sterling Financial Management, Inc.

📢 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

Our team would like to extend our warmest wishes to you and your loved ones for a joyful and peaceful Thanksgiving. We are truly grateful for the trust and confidence you place in us each day, and we remain dedicated to working diligently on behalf of you and your family. Thank you for allowing us to be part of your journey. Our offices will be closed 11/28-11/29 for our team to enjoy the holiday with their families.

Many middle-aged Americans feel unprepared for retirement, but it isn’t too late to make a plan to boost your savings. #FinancialAdvisor #FinancialPlanning #Hagersfield #Frederic #Maryland #Haymarket #Virginia

The IRS has released the 2025 tax brackets with a 2.8% inflation adjustment—the smallest increase in several years. Here's what's changing: ➡️ Standard deduction for married couples filing jointly rises to $30,000 ➡️ Single filers' standard deduction increases to $15,000 ➡️ Annual tax-free gift limit grows to $19,000 per recipient ➡️ Estate tax exclusion reaches $13.99 million (up from $13.61 million) ➡️ Earned Income Tax Credit maximum increases to $8,046 for qualifying families Understanding how tax brackets work remains crucial: you're only taxed at higher rates for income above each threshold, not your entire earnings. For example, if you're married filing jointly, you'll pay 10% on the first $23,850 of taxable income, then 12% on earnings above that amount. Important note: Some provisions aren't changing in 2025, including the $10,000 SALT deduction cap and the $2,000 Child Tax Credit. ⚖️ #TaxBrackets #IRSUpdate #TaxPlanning #EstateGift https://lnkd.in/ewgU5V7G

Wednesdays mean one thing--weekly market commentary! We provide insights to help you navigate the ever-changing market landscape with latest updates and thoughtful analysis. #MondayMotivation #FinancialPlanning #FinancialAdvisor #Hagerstown #Maryland

Deciding to consult a financial professional can be life-changing. Financial professionals play a vital role in the lives of their clients. A person’s money is their security, autonomy, and legacy to leave to their loved ones, and these people often have tough questions. Read more for four tough questions clients ask their financial professionals. #FinancialPlanning #Hagersfield #Frederic #Maryland #Haymarket #Virginia

Life is a continuous journey filled with ups and downs, but every step forward matters. Success may come and go, and setbacks are a part of growth. What truly counts is the courage to keep moving. Let's celebrate our perseverance and commitment to keep going, no matter what. What keeps you motivated? Share your story in the comments! #MondayMotivation #FinancialPlanning #FinancialAdvisor #Hagerstown #Maryland

Someone who is rich can buy what they want, when they want, with their available resources. A wealthy person, in contrast, is financially independent. Through my work, I've reviewed thousands of people's cash flow and net worth statements when working on their financial plans. I've provided financial planning for a wide variety of people including teachers, professional athletes, grocery clerks, rocket scientists, top executives, and multi-million-dollar business owners. #FinancialPlanning #Hagersfield #Frederic #Maryland #Haymarket #Virginia