This month, we’re focusing on key strategies and updates to enhance your financial planning. For retirees, using Qualified Charitable Distributions (QCDs) to reduce Required Minimum Distributions (RMDs) offers a tax-efficient way to manage retirement withdrawals while supporting philanthropic goals. Learn how this strategy could benefit you in the linked article below.
Additionally, significant changes to 401(k) plans are on the horizon for 2025, offering new opportunities to optimize retirement savings. From increased contribution limits to expanded eligibility for part-time workers, these updates aim to make retirement planning more accessible and flexible. Dive into the details in the articles linked below to stay ahead of these important developments.
Key Topics for This Month
QUALIFIED CHARITABLE DISTRIBUTIONS
Reducing RMDs With QCDs
For retirees who’ve accumulated significant savings in their tax-deferred accounts, the onset of required minimum distributions (RMDs) at age 73 can have serious tax consequences. That’s because the higher the balance in your tax-deferred accounts, the higher your RMDs—and potentially your tax bracket. If charitable giving is part of your financial plan, a qualified charitable distribution (QCD) can further your philanthropic goals and help reduce the tax hit from your RMD.
401K CHANGES
These key 401(k) plan changes are coming in 2025. Here’s what savers need to know
Key Points
- Starting in 2025, key 401(k) plan changes enacted via Secure 2.0 could make it easier to save for retirement, experts say.
- Some of these updates include higher catch-up contributions, more coverage for part-time workers and automatic enrollment.
- Roughly 4 in 10 American workers say they are behind in retirement planning and savings, according to a CNBC survey.
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