Required Minimum Distribution, Student Loan Management, Secure Act 2.0 – 529 to Roth IRA Transfers

In this episode of the Planned Solutions Incorporated Podcast, the passing of the Secure Act 2.0 has made several changes to the rules governing retirement accounts. Among these changes is the change in the Required Minimum Distribution (RMD) rules which extend the age at which retirement account owners will need to take distributions to age 73 in 2023. The Secure Act 2.0 also solidifies and expands the rules related to Qualified Charitable Distributions (QCDs) which allows for direct contributions from taxable retirement accounts to a qualified charity. Also, There have been a lot of changes to student loan rules over the past few years which may not have been front of mind for borrowers subject to the payment forbearance. Therefore, 2023 may be a good year for student loan borrowers to review their student loan options, recertify their income for Income-Driven Repayment plans, apply for student loan forgiveness, and explore new tax-free student loan payment options. And, The Secure Act 2.0 has created a new opportunity for money accumulated in 529 educational savings plans to be transferred to a Roth IRA for the 529 plan beneficiary. The maximum amount that can be transferred over the beneficiaries lifetime is $35,000 and the transfers must conform to the Roth IRA contribution rules which will require financial planning to meet the requirement of the new rules. However, it does offer a potentially valuable new option for money still in 529 plans after the beneficiaries' education has been paid for. Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Before preparing your 2022 income tax return(s) it is important to make sure that you have all of the tax forms and other tax information that you need. In some cases, this may mean being patient until all of your investment forms have been issued. In other cases, it may mean being careful to thoroughly go through your mail looking for tax forms. For example, mortgage companies often send out Form 1098, which reports the interest paid during the year with the monthly mortgage statement. So, it is important to sort through all of the pages in the mailing to see if your tax forms were included with the most recent statement. Also, more and more companies are posting tax forms online rather than mailing them. Our tax organizer, or your tax return from the previous year, may be used to compare the information that was reported in the prior year with the tax forms that have been received to see if anything is missing. Chase Armer's book- Financial Planning Insights is now available at: www.amazon.com/Financial-Planning…1586894022&sr=8-1 To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected] The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action. Planned Solutions, Inc.