January 11, 2024 • 30 mins
Maleeah, CJ, and Shawn talk about tax changes that you need to know about in 2024.
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Episode Transcript
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(00:00):
This is Money in Motion with COSSFinancial, a fun and informative show designed
to help you get answers to allyour retirement questions in one place. Happy
Thursday to you. Our phone linesare open right now to get on air
with our retirement planning professionals from COSSFinancial, CJ. Closs and Malia Quavis.
Telephone numbers for the station to geton the air six oh eight three
(00:23):
two one thirteen ten. That's sixoh eight three two one thirteen ten.
Can learn more about COSS Financial ontheir website Coss Financial dot com. That's
k l aa S Financial dot com. Great website to learn about COSS their
separate divisions. You can learn aboutthe team. You can also sign up
with weekly Market Pulse newsletter. Againthat all available to you at Cossfinancial dot
(00:44):
com. Speaking of things available toyou. The telephone number for COSS Financial
six oh eight four four two fivesix three seven. No charge for that
initial get to know your appointment.It will be complementary for you at COSS
Financial and their telephone number six oheight four four two five six three seven.
And joining us this morning our CJCloss and Malia Quavis CJ. How
you doing today. I'm doing great. Happy snowy Thursday. Happy snowy Thursday
(01:06):
to you and Malia. How areyou doing on this snowy morning? Doing
very well. I realize I don'thave my snowbrush in my car, so
that might be an issue. Idon't know why we haven't prepared better for
winter. Yeah, it's that I'mMalia. I'm a little surprised. You're
always the one that's very much bothprepared. Someone slipped him was a MEBA
Okay, yeah, I know whatyou mean there. I exactly. We've
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got an important conversation and of coursethinks about some shifts when it comes to
taxes, and of course we've gotthe new year, so do some planning
there and we're going to talk aboutsome really important details this morning with CJ
and Malia, And of course thisis an open conversation. If you have
questions, whether it's about the topicat hand or retirement planning questions in general,
you are more than welcome encouraged togive us a call right here at
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the station six oh eight three twoone thirteen ten. That's six o'h eight
three two one thirteen ten. Loveto have you join us. The website
for Coss Financially. It is colossfinancialdot com and they're telling phe number six
O eight four four two five sixthree seven. A great thing also we
do on the program each and everyweek is the class quiz question Leak.
Will do that again this week achance to win a great prize from our
(02:14):
friends at Class Financial, a twentyfive dollars gift card to Buffalo Wild Wings.
We'll tell you a little bit lateron the program how you can win
that. Just a little tip listencloser to the show because oftentimes both the
question and answer to the class Quizquestion Leak come up during the program and
bari before we start looking ahead totwenty twenty four. In that very timely
topic, let's take a look backat LAX last week's program the class quiz
(02:37):
question Leak. Talk about the questionand the answer there as well. Yeah,
so last week we talked about ifyou were to choose to wait for
your Social Security benefit past your fullretirement age, what that could look like
in terms of benefits. So wehad a lot of callers with this question
last week trying to get the correctanswer. The question was, if if
(03:00):
you wait till you till past yourfull retirement age FRA to begin your Social
Security benefit. What percentage per yearwill be added to your benefit? Was
it five percent or eight percent?Pat of Randolph listsconsin correctly answered eight percent,
So hopefully she's waiting to collect theextra eight percent per year, which
(03:22):
is a nice, nice way toreally help your benefit for your future.
So thanks for listening. Listen carefullytoday. Great opportunity today again to win
a twenty five dollars gift card toBuffalo Wild Wings. And speaking of last
week's program, anytime we talk withour retirement planning professionals about social Security,
it's always a very popular topic.You can listen back to last week's program
(03:43):
as well as subscribe to the podcastat classfinancial dot com that's Klaas Financial dot
com. Of course, today's topicvery timely. Get some updates on some
tax shifts we should be aware ofas we begin the new year as well
as of course begin our planning,right CJ. That's right. So the
RUSS always comes forward with some updatesevery year, many of which change just
due to inflation adjustments. And wedo understand as we start talking about kind
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of twenty twenty four that many peopleare still stuck in twenty twenty three,
and it's because they're thinking about thisrelative to filing their taxes for twenty twenty
three. And that's good. Soas an fyi, the IRS will begin
to accept your twenty twenty three taxreturns on January twenty ninth of twenty twenty
four, with a deadline of Aprilfifteenth of twenty twenty four. So it's
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good. Continue to work with youraccountants, accumulate those ten ninety nine and
W two's and all of that funstuff, and be prepared to file income
taxes four last year. But weare going to the point of this show
is to focus on twenty twenty fourand some of the changes that have been
implemented. So let's go ahead andstart looking at some of those updates to
make sure that you have the bestpossible outcome for your financial planning. So
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Adam, number one, an updateis that the standard deduction has changed in
twenty twenty four. So the standarddeduction, it's a specific dollar amount that
the IRS provides each year that mayreduce the amount of income on which you
are taxed. And for married couplesfiling jointly for tax yer twenty twenty four,
that standard deduction has risen to twentynine thy two hundred dollars, which
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is an increase of fifteen hundred dollarsfrom what it was in twenty twenty three.
Now, FYI, we are notgiving you any increased amounts above that
for people who are over sixty five. So there are other numbers besides what
we're giving to you today. Buthere's the point. Standard deduction has increased.
For single taxpayers and married individuals whofile separately, the standard deduction rises
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to fourteen thousand, six hundred fortwenty twenty four, and for heads of
household the standard deduction will be twentyone thousand, nine hundred for twenty twenty
four. On top of this,another area that has changed is marginal tax
rates. Now it's not so muchthat the rates have changed as a matter
of fact, four now in theyear twenty twenty four, or the rates
remain the same. That top taxrate, if you don't remember, is
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thirty seven percent. Now to getto that thirty seven percent federal marginal income
tax, that number is higher thanwhat it was before. You would if
you are an individual tax parafiling,you know, as an individual, you
would have to earn over six hundredand nine thousand, three hundred and fifty
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dollars, it would be the amountabove that that you would start paying thirty
seven percent marginal federal income tax.And for married couples filing jointly, that
number is seven hundred and thirty onethousand, two hundred dollars. So as
you can see, there's not thatmany Americans that are hitting this top tax
bracket of thirty seven percent. Butyou know these numbers, while the percentages
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haven't changed, it's still thirty sevenis the highest than thirty five, then
thirty two percent, then twenty fourpercent, then twenty two, then twelve
and ten. Those are the marginalthe federal marginal income tax rates. The
numbers that correspond with that, meaningthe income ranges that correspond with that have
changed. So we gave you thetop number, but I would highly suggest
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that everybody kind of slows down andtakes a look at at what would impact
them. Talking this morning with CJ. Cossmilea Quavis our retirement planning professionals from
Coss Financials. If you've got aquestion, now is a prime time to
get right on the program. AllI got to just pick up the phone,
gives call six oh eight three twoone thirteen ten. That's six soh
eight three two one thirteen ten willget you on the air with CJ.
(07:27):
Coss and Malia Quavis, our retirementplanning professionals from Class Financial online Cossfinancial dot
com and their telephone number six oheight four four two five six three seven.
No charge for that initial get toknow your appointment at Loss Financial.
It will be complimentary to you againtheir number six oh eight four four two
five six three seven. Little pausethere, CG. I was I was
debating whether I was gonna gonna giveout the telephone numbers or ask you a
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question about the tax rates, whichis I think the mistake a lot of
folks that are unfamiliar with this stuffmake. They assume that if I'm making
two hundred and forty three thousand,seven hundred and twenty five dollars, all
of my my money will be taxedat thirty five percent. It's progressive,
right. As you move through,everybody gets to the ten, twelve,
twenty two, twenty four, thirtytwo thirty five as they move through.
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Correct, you got it? Yeah, very good observation there, Sean.
So you know may Again, itdepends on how you're filing single, head
of household, married, filing jointly, YadA YadA. Those numbers can vary.
But what Sean is getting at hereis that people think, oh,
if I if I go one dollarinto the next marginal bracket, that the
irs is set out there that allof my money, you know, hits
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the higher rate. That's not true. It is the money in each bracket
that hits. That's why they there'sthis term marginal bracket and effective. So
marginal is just simply the highest marginalfederal income tax bracket that your dollars hit.
Effective is your total tax divided byyour taxable income. It's either taxable
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income or total income, doesn't matter. It's the it's the like average or
blending of all of that tax intoa rate. So often if you if
you ever at a cocktail party andsomebody says, I pay thirty five percent
tax, what they're really saying isthey're really trying to tell you how much
incomes they make without telling you howmuch income they make, which to me
is a little off putting. Buton top of that, that's not really
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true. That's there that maybe theirmarginal but if your marginal is thirty five,
you're effective could be eighteen nineteen twentypercent. So you get the idea.
You do need to be aware ofthe difference between kind of the blending
or that average rate which is muchlower versus the highest marginal income tax bracket.
It's great question, Sean, Agreat point. What about Earned income
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tax credits c J. Yeah,so again in twenty twenty four, the
Earned income Tax Credit has The amountis now seven eight hundred and thirty dollars
for qualifying tax payers who have threeor more qualifying children. It's an increase
of four hundred dollars for tax fromtax here twenty twenty three. And again
remember this is for loa to moderateincome workers who who have qualified children,
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although even if you don't have qualifyingchildren, you may still be eligible to
claim the earned income tax credit,but work with your financial advisor or accountant
to determine if that's true. Anothercategory that's changed are RMD adjustments, So
this is an adjustment of the RMDage. One change that took effect last
year in January first of twenty twentythree was the increase of the required minimum
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Distribution age to seventy three now somepeople are listening going, wait, what,
No, mine was seventy and ahalf and that hasn't changed. I'm
still paying required distributions. So thinkof it this way. If you were
not yet seventy two by the endof twenty twenty two, then your new
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required minimum distribution age will be seventythree moving forward. And on top of
that, for those people born innineteen sixty or later, which again I'm
raising my hand, I was bornin nineteen six year or later, the
rmd AG for me and you,if you raised your hand, is actually
seventy five. So keep in mindthat you can distribute funds from retirement accounts
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after age fifty nine and a halfat any time without penalty. But of
course, what we're talking about hereis the agent which required distributions must begin,
So that RMD age is a prettybig deal for a lot of our
clients. There's some key ages thatexist out there, you know, fifty
five, fifty nine and a half, sixty two, sixty five. There's
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a lot of ages, but acouple big ones are our sixty five when
Medicare kicks on, and then alsorequired minimum distribution age because if you're not
using the money. By that time, Uncle Sam's going to come a knock
in and say you got to startpulling money out of that IRA. Another
thing is that the penalty for missingyour RMD has changed. So if you
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happen to miss taking out your requireddistribution, the IRS adjusted the penalty down
in twenty twenty three to just twentyfive percent of the shortfall, and beyond
that, if the mistake is correcteda timely manner, the penalty is even
further reduced down to ten percent.John, you probably remember during the show
we used to do hold bits abouthow crazy the penalty was. It was
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a fifty percent penalty for anything thatyou missed. Well, that's one of
the things that during most recent changes, IRS said, you know, that's
really just too severe. Let's goahead and make an adjustment down of that
penalty. And who says the IRSisn't reasonable? True, It depends on
the day how I feel about thatone. About what about Wroth accounts you
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and Malie had mentioned I think wetalked a couple of weeks ago, mentioned
something when it comes to rm dsand those Wroth Yeah, yeah, yeah,
exactly. So the final kind ofchange I'm going to mention during my
section before Malia starts chiming in hereis also the elimination of required minimum distribution
for retirement plan Wroth accounts. Now, when we say retirement plan wroth iras
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have not for a long time hadany required minimum district abutions that needed to
come out of them. But therewas this weird thing that like Wroth four
oh one k's and Wroth foorol threebs they did. So if you left
your money in an old employer sponsoredretirement plan and it was Wroth money and
you turned say, you know,seventy three years old and we're required distribution
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age or seventy two whatever it was, historically you would have required minimum distributions
and the only way to avoid thatwas to roll it over to a roth
ira. Well, as we mentionedon the show many times, that to
us was a miss a mismatch,like why like just clean that up and
you know, true to form,that was one of the things that got
cleaned up here recently. So goodnews is now if you leave money in
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those old plans, then it's Wrothmoney. No longer will you have those
required distributions. Exciting and really interestingchanges and important changes to be aware of
as we talk with our retirement planningprofessionals from Class Financial. Don't forget.
If you ever have a question,you can call the show. We'll get
you right on the air. Sixoh eight three two one thirteen ten.
That's three two one thirteen ten getsyou on the air with CJ. Closs
(14:01):
and Malia Quavis, our retirement planningprofessionals from Class Financial. You can learn
more online COSS Financial dot com.That's Coss k l AA S Financial dot
com and the telephone number six oheight four four two five six three seven.
No charge for the initial gets toknow you appointment at Loss Financial.
It will be complementary to you again. The telephone number for Class financials office
(14:22):
here in Madison six o eight fourfour two five six three seven. We'll
talk about contribution limits with Malia andget more details on that and we'll take
your call next as Money in Motionwith Class Financial continues right here on thirteen
ten WIBA. This is Money inMotion with Class Financial, a fun and
(14:43):
informative show designed to help you getanswers to all your retirement questions in one
place. Well minds are open foryou right now at six oh eight three
two one thirteen ten. That's threetwo one thirteen ten gets you on the
air with our retirement planning professionals,Malia Quavis and CJ. Closs. Of
course they come to us from CossFinancial online, Coss Financial dot com.
(15:03):
That's k LaaS Financial dot Com.Telephon umber for the office right here in
Madison. Six oh eight four fourtwo five six three seven. No charge
for that. Initi'll get to knowyou, Appoyment dech Loss Financial. It
will be complimentary to you again.They're telephone number six oh eight four four
two five six three seven. Newyear, new rules when it comes to
taxes and other things we were concernedabout, not worried about, concerned about
(15:26):
and aware of. That's the wordI'm thinking of, is aware of when
it comes to planning for twenty twentyfour. And Malia, what about things
like limits for contributions in twenty twentyfour when it comes to our retirement accounts.
Yeah, we get really excited atthe beginning of the year. You
know, everybody's setting down their healthgoals usually and hopefully, from our perspective,
(15:48):
their wealth goals as well, andso it's really a good time to
reassess how much you are able toshelter away into your retirement accounts. And
so for some people, maybe they'restarting the year with a little bit of
a pay raise, even a fewpercent, and we would recommend you look
at diverting some of that. Sayyou got a three to four percent increase,
(16:08):
maybe you take a percent or twoand direct that to your four oh
one K or other retirement plan contributions. So keep that in mind as you're
sitting down and looking at what canI do for the year. The reason
we bring this up right now,at this point in January so early on,
is that for those who are contributingto a retirement plan at work,
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you have to understand that any amountyou contribute needs to be in by December
thirty first of that year through yourpayroll in order to get the deductions you
know, right, you know thefor tax purposes with iras, those are
quite different. You do have uptill April fifteenth, the very year,
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so to get your contributions in there. So we want to make sure that
if you're putting into a retirement planat work, that you look at how
many pay periods you're gonna have.Obviously you can put more in at different
times of the year, but wewould say get on a system, look
at how much you can put away, and see if you can in fact
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put more in or perhaps even maxit out. So today, when we're
talking about four oh one K,four oh three B and most four fifty
seven plans out there, and thefederal government's Thrust Savings Plan, the TSP
plans in twenty twenty four, youshould know that they've been increased to twenty
three thousand for this year that youcan put into those, and you have
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a seventy five hundred dollars catch upfor those people who are over fifty years
of age, so total of thirtythousand, five hundred in in tax hier
twenty twenty four. Now IRA contributionlevels have increased as well. They're up
to seven thousand plus one thousand dollarsketchup for those over fifty, so a
total of eight thousand dollars. Andone thing that the Secure two point Zero
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Act twenty twenty two suggested is thatwe will start seeing an annual cost of
living adjustment for the iras going forward. It just happens to remain at the
thousand dollars for twenty twenty four.The catch up. Another change we see
is qcds. So in twenty twentyfour, and we discuss this quite frequently
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on this show. This is withregards to those required minimum distributions and where
you can choose to direct them.So we're talking about qcds, which are
qualified charitable distributions, and so thatis a way in which you could direct
some of those rmds and by doingthat, and as long as they are
sent directly to a qualified charity,again not your children, but a qualified
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charity that allows for you and theorganization to skip the tax portion the taxing
of it, which everybody smiles about. And previously the maximum annual limit for
that was one hundred thousand. Thatwas the most she could do per year.
I mean some people maybe it's fivethousand dollars, but it's good to
know what the limits are. Nowin twenty twenty four, that's actually increasing.
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This is linked to inflation and anew amount set is one hundred and
five thousand, so just be awareof that. Again, we're talking about
rmds and qcds and how they interact. And the rmd ah that CJ just
mentioned varies according to what year youwere born. But just to specify special
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note, you must be seventy anda half or older. You don't have
to wait to be rmd AG ashe was speaking of to be able to
make a QCD. Okay, somany times people are looking at I'm charitably
minded. I need to reduce theamount I'm keeping in my tax deferred accounts
because eventually I'm going to have tobe pulling those required minimum distributions. Some
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people get ahead start on that,and they can start as early as seventy
and a half. So that's agreat great thing to consider as you're sitting
now with your acountant or your financialadvisor. Some other changes we see additional
employer contributions now can be eligible forROTH treatment, so this actually went into
effect last year. However, itdoes require that employers have updated systems and
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paperwork in order, but the pointof it is employers are permitted, although
it's still discretionary to deposit matching andor non elective contributions to employees' designated WROTH
accounts. This used to be notthe case. So this is actually a
really nice thing. Again, everyemployer might not be quite doing it yet,
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but it's nice to know that that'sdefinitely now in place for many The
iris is also raised phase out incomeranges for iras, so many people understand
if they have a workplace retirement plan, they might not be able to contribute
to a traditional IRA. Currently,for twenty twenty four, the phase out
range is now between seventy seven thousandand eighty seven thousand and twenty twenty four,
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so those those totals went up byabout four thousand dollars. So what
that means is more people qualify fora deduction based on their contributions. And
then now the income limit for rothiras is also higher. In twenty twenty
four, the maximum you can earnand still contribute to a roth ira is
one hundred and sixty one thousand forsingle tax filers, that's up from one
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hundred and fifty three thousand, andif you're married and filing jointly, your
joint modified adjusted gross income must beunder two hundred and forty thousand. So
there's some changes every year, andtoday we're just highlighting some of the main
ones that concern our clients, butcertainly know this list is not exhaustive.
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Today there's plenty of other IRS adjustments, but we didn't want to bore you
for twelve hours today. It's nicetoo that the IRS is making this stuff
digital nowadays because the numbactories that wordthat were sacrificed in years past to get
this information. Yeah, a lotof solid, great information speaking of online
and things available online. Cossfinancial dotcom. That's k l a a s
(22:10):
Financial dot com. It's a greatwebsite and resource to learn more about COSS
Financial their separate divisions. Also signup for the weekly Market Pulse newsletter all
at Cossfinancial dot com. That's kl a a s Financial dot com and
their telephone number six oh eight fourfour two five six three seven. No
charge for that initial gets to knowyou appointment tech Loss Financial. It will
(22:30):
be complementary to you again that numbersix oh eight four four two five six
three seven will take her down thehome stretch. Get some other other changes
you need to be aware of andwhilst do the class quiz lush leak next
as Money in Motion with Coss Financialcontinues right here on thirteen ten wib E.
(22:51):
This is Money in Motion with ClassFinancial, a fun and informative show
designed to help you get answers toall your retirement questions in one place.
Talking this morning with our retirement planningprofessionals from Class Financial, CJ Closs and
Malia Quavis, I mentioned the websitebefore the break, it's a great resource
learn more about COSS Financial. IfI mentioned the weekly market paulse newsletter,
(23:12):
it's a great little email you receivedonce a week in your inbox. You
sign up for it. It's gota little snapshot of what's been going on
in the markets. Also linked tothe most recent podcast again that available to
you at Cossfinancial dot com. Theirtelephone number six oh eight four four two
five six three seven. No chargefor that initial get to know you appointment
at Coss Financial. It will becomplimentary to you again their number six oh
(23:33):
eight four four two five six threeseven. Into the new year, talking
about planning and things to be awareof when it comes to twenty twenty four.
Things that have changed, some ofsome of the bigger things, don't
forget. As we talked this morning, all this great information is available at
the podcast at classfinancial dot com andCJS. We kind of wrapped things up
this morning. There are other changes, as I Omalia mentioned as well that
(23:56):
there's a lot of stuff changing everyyear. This is kind of These are
kind of the bigger things that thatpeople encounter. But what are some of
the other things that are kind ofgrabbing your attention? CJ. Yeah,
I know you're right, Sean,there's a lot and WILLI mentioned that.
So certainly, if there's anything wedon't mention, feel free to either look
it up online or give us acall. But we're trying to hit on
(24:18):
a few big areas that hopefully,if you're paying attention enough while you're at
work or at home, that itwill say, hey, that applies to
me. So another area of changehas been there's higher FSA and HSA contribution
limits. So FSA stands for FlexibleSpending accounts. HSA stands for Health savings
accounts. You know our industry,we love our acronyms. But in twenty
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twenty four, those with flexible spendingaccounts can contribute up to three two hundred
dollars pre tax to pay for healthcarecosts. And of course by contributing to
the account pre tax, you canreduce your taxable income and ultimately what you
owe the government. Now, FSAsare different than hsas, so the irs
also raise a contribution limit for healthsavings accounts to four one hundred and fifty
(25:06):
dollars for single filers and eighty threehundred dollars for families. Now those limits
are over seven percent higher than theywere in twenty twenty three. And also
remember there is a catchup of onethousand dollars per individual on the HSA contribution
if you're over the age of fiftyfive, so really good provisions there.
(25:26):
Do work with your account or financialadvisor to understand the difference between an FSA
and an HSA. You have tobe eligible for an HSA or an FSA,
and so again, if it appliesto you, you'd probably know what
I'm talking about. Another area ofadjustment is student loan match benefits, So
this is very interesting. Starting thisyear, employers will be able to match
(25:48):
employee student loan payments with matching paymentsto a retirement account, giving workers an
extra incentive to save while also payingoff their education loans. That means if
your employer offers to match your fouroh one K contributions, you could still
get that matched money without ever depositingfunds into your retirement account. Instead,
(26:11):
your monthly student loan payment could countas that quote unquote contribution. So this
is a big deal. Think aboutit. You know, prior it used
to be, hey, we'll youknow, match you dollar for dollar up
to three percent. Well what ifyou're just out of college and you get
a good job and you want tosave into the four oh one K,
but you need to be paying offyour student loans, you know, which
is good? People like us financialadvisors would say, do that. Well,
(26:33):
what you were doing was leaving freemoney on the table with your employer.
Well, now employers can add thisstudent loan matching piece, which is
if you're if you can prove thatthose moneies are going towards a student loan,
we will say that qualifies for ourmatching dollars. So really really cool
provisions. And then finally, there'salso this option. Some of you have
heard about it. I know itbecause clients come in and talk to me
(26:56):
about it. It's five twenty nineplan. Assets have new provisions. So
if you have held your five totwenty nine plan five twenty nine is typically
known as a college savings plan,that money can now be rolled over to
a wroth IRA for the beneficiary.However, there's a bunch of stipulations.
One I already mentioned, it hadto have been open for at least fifteen
years. It is still subject toannual wroth contribution limits, and it has
(27:21):
an aggregate lifetime limit for each beneficiaryof thirty five thousand dollars. The rollover
gets treated as a contribution towards asa contribution towards the annual wroth Ira contribution
limit. So just think of itas, Hey, if what if I'd
put money in a five to twentynine for my kid? They don't go
to college or can't you know,have educational expenses to make deductions on a
(27:45):
qualified basis from that five twenty nine, what can they do? The money's
kind of stuck. While good newsis that's not the case. You could
for that beneficiary do wroth Ira contributionsup to thirty five thousand dollars over a
lifetime, So there's another good optionfor those five twenty nine funds. Fantastic
stuff this morning, as always fromour retirement planning professionals from Class Financial,
(28:07):
CJ. Closs and Malia Quavis.Learn more online about Class Financial grave website
classfinancial dot com. That's k lAasfinancial dot com. Now the telephone number
for the office right here in Madisonsix'h eight four four two five six
three seven. No charge for thatinitial get to know your appointment Tech Loss
Financial. It will be complimentary toyou again their number six oh eight four
four two five six three seven.Go want to hold on to that telephone
(28:29):
number now as well, because it'stime for the class quiz question of the
week. It works like this andjust a moment, I'll ask you the
class quiz question the week. Youwill then have thirty minutes from the inter
Today's program to call the Class Financialoffice right here in Madison at six oh
eight four four two five six threeseven. If you are the first call
with correct answer, you win thisweek's prize, which is a twenty five
dollars gift card to Buffalo Wild Wings. This week's closs quiz question the week
(28:52):
is this, what is the amountof the standard deduction for married couples filing
jointly for tax year twenty twenty four. Is it twenty five thousand dollars or
twenty nine thousand, two hundred dollars. Telephone number six oh eight four four
two five six three seven, firstcall correct an So when that twenty five
dollars gift card to Buffalo Wild Wings. Don't forget as well. That's Coss
(29:15):
Financials office right here in Madison.Their number six oh eight four four two
five six three seven C J.Maleia. It's always informative and great hanging
out with you guys. You enjoyedthis beautiful day. Thank you. Take
care. Guys. Speaking of retirementafter a nearly fifty while fifty year career,
Mark Cain is retiring over at Channelthree. Tomorrow will be his last
day. He'll be joining us nextright here on thirteen ten WIBA. This
(29:42):
is Money in Motion with Coss FinancialAsset Advisors, LLC, a registered investment
advisor registered with the SEC. Thecontent of this show is for informational purposes
only and should not be considered individualinvestment advice. Class Financial does not offer
tax or legal advice. Any opinionoffered during the course of this show is
(30:04):
the opinion of that particular investment advisorrepresentative, and not necessarily the opinion of Class Financial
This is Money in Motion with COSSFinancial, a fun and informative show designed
to help you get answers to allyour retirement questions in one place. Happy
Thursday to you. Our phone linesare open right now to get on air
with our retirement planning professionals from COSSFinancial, CJ. Closs and Malia Quavis.
Telephone numbers for the station to geton the air six oh eight three
(00:23):
two one thirteen ten. That's sixoh eight three two one thirteen ten.
Can learn more about COSS Financial ontheir website Coss Financial dot com. That's
k l aa S Financial dot com. Great website to learn about COSS their
separate divisions. You can learn aboutthe team. You can also sign up
with weekly Market Pulse newsletter. Againthat all available to you at Cossfinancial dot
(00:44):
com. Speaking of things available toyou. The telephone number for COSS Financial
six oh eight four four two fivesix three seven. No charge for that
initial get to know your appointment.It will be complementary for you at COSS
Financial and their telephone number six oheight four four two five six three seven.
And joining us this morning our CJCloss and Malia Quavis CJ. How
you doing today. I'm doing great. Happy snowy Thursday. Happy snowy Thursday
(01:06):
to you and Malia. How areyou doing on this snowy morning? Doing
very well. I realize I don'thave my snowbrush in my car, so
that might be an issue. Idon't know why we haven't prepared better for
winter. Yeah, it's that I'mMalia. I'm a little surprised. You're
always the one that's very much bothprepared. Someone slipped him was a MEBA
Okay, yeah, I know whatyou mean there. I exactly. We've
(01:32):
got an important conversation and of coursethinks about some shifts when it comes to
taxes, and of course we've gotthe new year, so do some planning
there and we're going to talk aboutsome really important details this morning with CJ
and Malia, And of course thisis an open conversation. If you have
questions, whether it's about the topicat hand or retirement planning questions in general,
you are more than welcome encouraged togive us a call right here at
(01:53):
the station six oh eight three twoone thirteen ten. That's six o'h eight
three two one thirteen ten. Loveto have you join us. The website
for Coss Financially. It is colossfinancialdot com and they're telling phe number six
O eight four four two five sixthree seven. A great thing also we
do on the program each and everyweek is the class quiz question Leak.
Will do that again this week achance to win a great prize from our
(02:14):
friends at Class Financial, a twentyfive dollars gift card to Buffalo Wild Wings.
We'll tell you a little bit lateron the program how you can win
that. Just a little tip listencloser to the show because oftentimes both the
question and answer to the class Quizquestion Leak come up during the program and
bari before we start looking ahead totwenty twenty four. In that very timely
topic, let's take a look backat LAX last week's program the class quiz
(02:37):
question Leak. Talk about the questionand the answer there as well. Yeah,
so last week we talked about ifyou were to choose to wait for
your Social Security benefit past your fullretirement age, what that could look like
in terms of benefits. So wehad a lot of callers with this question
last week trying to get the correctanswer. The question was, if if
(03:00):
you wait till you till past yourfull retirement age FRA to begin your Social
Security benefit. What percentage per yearwill be added to your benefit? Was
it five percent or eight percent?Pat of Randolph listsconsin correctly answered eight percent,
So hopefully she's waiting to collect theextra eight percent per year, which
(03:22):
is a nice, nice way toreally help your benefit for your future.
So thanks for listening. Listen carefullytoday. Great opportunity today again to win
a twenty five dollars gift card toBuffalo Wild Wings. And speaking of last
week's program, anytime we talk withour retirement planning professionals about social Security,
it's always a very popular topic.You can listen back to last week's program
(03:43):
as well as subscribe to the podcastat classfinancial dot com that's Klaas Financial dot
com. Of course, today's topicvery timely. Get some updates on some
tax shifts we should be aware ofas we begin the new year as well
as of course begin our planning,right CJ. That's right. So the
RUSS always comes forward with some updatesevery year, many of which change just
due to inflation adjustments. And wedo understand as we start talking about kind
(04:09):
of twenty twenty four that many peopleare still stuck in twenty twenty three,
and it's because they're thinking about thisrelative to filing their taxes for twenty twenty
three. And that's good. Soas an fyi, the IRS will begin
to accept your twenty twenty three taxreturns on January twenty ninth of twenty twenty
four, with a deadline of Aprilfifteenth of twenty twenty four. So it's
(04:30):
good. Continue to work with youraccountants, accumulate those ten ninety nine and
W two's and all of that funstuff, and be prepared to file income
taxes four last year. But weare going to the point of this show
is to focus on twenty twenty fourand some of the changes that have been
implemented. So let's go ahead andstart looking at some of those updates to
make sure that you have the bestpossible outcome for your financial planning. So
(04:55):
Adam, number one, an updateis that the standard deduction has changed in
twenty twenty four. So the standarddeduction, it's a specific dollar amount that
the IRS provides each year that mayreduce the amount of income on which you
are taxed. And for married couplesfiling jointly for tax yer twenty twenty four,
that standard deduction has risen to twentynine thy two hundred dollars, which
(05:16):
is an increase of fifteen hundred dollarsfrom what it was in twenty twenty three.
Now, FYI, we are notgiving you any increased amounts above that
for people who are over sixty five. So there are other numbers besides what
we're giving to you today. Buthere's the point. Standard deduction has increased.
For single taxpayers and married individuals whofile separately, the standard deduction rises
(05:40):
to fourteen thousand, six hundred fortwenty twenty four, and for heads of
household the standard deduction will be twentyone thousand, nine hundred for twenty twenty
four. On top of this,another area that has changed is marginal tax
rates. Now it's not so muchthat the rates have changed as a matter
of fact, four now in theyear twenty twenty four, or the rates
remain the same. That top taxrate, if you don't remember, is
(06:04):
thirty seven percent. Now to getto that thirty seven percent federal marginal income
tax, that number is higher thanwhat it was before. You would if
you are an individual tax parafiling,you know, as an individual, you
would have to earn over six hundredand nine thousand, three hundred and fifty
(06:24):
dollars, it would be the amountabove that that you would start paying thirty
seven percent marginal federal income tax.And for married couples filing jointly, that
number is seven hundred and thirty onethousand, two hundred dollars. So as
you can see, there's not thatmany Americans that are hitting this top tax
bracket of thirty seven percent. Butyou know these numbers, while the percentages
(06:45):
haven't changed, it's still thirty sevenis the highest than thirty five, then
thirty two percent, then twenty fourpercent, then twenty two, then twelve
and ten. Those are the marginalthe federal marginal income tax rates. The
numbers that correspond with that, meaningthe income ranges that correspond with that have
changed. So we gave you thetop number, but I would highly suggest
(07:06):
that everybody kind of slows down andtakes a look at at what would impact
them. Talking this morning with CJ. Cossmilea Quavis our retirement planning professionals from
Coss Financials. If you've got aquestion, now is a prime time to
get right on the program. AllI got to just pick up the phone,
gives call six oh eight three twoone thirteen ten. That's six soh
eight three two one thirteen ten willget you on the air with CJ.
(07:27):
Coss and Malia Quavis, our retirementplanning professionals from Class Financial online Cossfinancial dot
com and their telephone number six oheight four four two five six three seven.
No charge for that initial get toknow your appointment at Loss Financial.
It will be complimentary to you againtheir number six oh eight four four two
five six three seven. Little pausethere, CG. I was I was
debating whether I was gonna gonna giveout the telephone numbers or ask you a
(07:47):
question about the tax rates, whichis I think the mistake a lot of
folks that are unfamiliar with this stuffmake. They assume that if I'm making
two hundred and forty three thousand,seven hundred and twenty five dollars, all
of my my money will be taxedat thirty five percent. It's progressive,
right. As you move through,everybody gets to the ten, twelve,
twenty two, twenty four, thirtytwo thirty five as they move through.
(08:09):
Correct, you got it? Yeah, very good observation there, Sean.
So you know may Again, itdepends on how you're filing single, head
of household, married, filing jointly, YadA YadA. Those numbers can vary.
But what Sean is getting at hereis that people think, oh,
if I if I go one dollarinto the next marginal bracket, that the
irs is set out there that allof my money, you know, hits
(08:31):
the higher rate. That's not true. It is the money in each bracket
that hits. That's why they there'sthis term marginal bracket and effective. So
marginal is just simply the highest marginalfederal income tax bracket that your dollars hit.
Effective is your total tax divided byyour taxable income. It's either taxable
(08:54):
income or total income, doesn't matter. It's the it's the like average or
blending of all of that tax intoa rate. So often if you if
you ever at a cocktail party andsomebody says, I pay thirty five percent
tax, what they're really saying isthey're really trying to tell you how much
incomes they make without telling you howmuch income they make, which to me
is a little off putting. Buton top of that, that's not really
(09:16):
true. That's there that maybe theirmarginal but if your marginal is thirty five,
you're effective could be eighteen nineteen twentypercent. So you get the idea.
You do need to be aware ofthe difference between kind of the blending
or that average rate which is muchlower versus the highest marginal income tax bracket.
It's great question, Sean, Agreat point. What about Earned income
(09:37):
tax credits c J. Yeah,so again in twenty twenty four, the
Earned income Tax Credit has The amountis now seven eight hundred and thirty dollars
for qualifying tax payers who have threeor more qualifying children. It's an increase
of four hundred dollars for tax fromtax here twenty twenty three. And again
remember this is for loa to moderateincome workers who who have qualified children,
(10:00):
although even if you don't have qualifyingchildren, you may still be eligible to
claim the earned income tax credit,but work with your financial advisor or accountant
to determine if that's true. Anothercategory that's changed are RMD adjustments, So
this is an adjustment of the RMDage. One change that took effect last
year in January first of twenty twentythree was the increase of the required minimum
(10:24):
Distribution age to seventy three now somepeople are listening going, wait, what,
No, mine was seventy and ahalf and that hasn't changed. I'm
still paying required distributions. So thinkof it this way. If you were
not yet seventy two by the endof twenty twenty two, then your new
(10:45):
required minimum distribution age will be seventythree moving forward. And on top of
that, for those people born innineteen sixty or later, which again I'm
raising my hand, I was bornin nineteen six year or later, the
rmd AG for me and you,if you raised your hand, is actually
seventy five. So keep in mindthat you can distribute funds from retirement accounts
(11:05):
after age fifty nine and a halfat any time without penalty. But of
course, what we're talking about hereis the agent which required distributions must begin,
So that RMD age is a prettybig deal for a lot of our
clients. There's some key ages thatexist out there, you know, fifty
five, fifty nine and a half, sixty two, sixty five. There's
(11:26):
a lot of ages, but acouple big ones are our sixty five when
Medicare kicks on, and then alsorequired minimum distribution age because if you're not
using the money. By that time, Uncle Sam's going to come a knock
in and say you got to startpulling money out of that IRA. Another
thing is that the penalty for missingyour RMD has changed. So if you
(11:48):
happen to miss taking out your requireddistribution, the IRS adjusted the penalty down
in twenty twenty three to just twentyfive percent of the shortfall, and beyond
that, if the mistake is correcteda timely manner, the penalty is even
further reduced down to ten percent.John, you probably remember during the show
we used to do hold bits abouthow crazy the penalty was. It was
(12:09):
a fifty percent penalty for anything thatyou missed. Well, that's one of
the things that during most recent changes, IRS said, you know, that's
really just too severe. Let's goahead and make an adjustment down of that
penalty. And who says the IRSisn't reasonable? True, It depends on
the day how I feel about thatone. About what about Wroth accounts you
(12:33):
and Malie had mentioned I think wetalked a couple of weeks ago, mentioned
something when it comes to rm dsand those Wroth Yeah, yeah, yeah,
exactly. So the final kind ofchange I'm going to mention during my
section before Malia starts chiming in hereis also the elimination of required minimum distribution
for retirement plan Wroth accounts. Now, when we say retirement plan wroth iras
(12:56):
have not for a long time hadany required minimum district abutions that needed to
come out of them. But therewas this weird thing that like Wroth four
oh one k's and Wroth foorol threebs they did. So if you left
your money in an old employer sponsoredretirement plan and it was Wroth money and
you turned say, you know,seventy three years old and we're required distribution
(13:18):
age or seventy two whatever it was, historically you would have required minimum distributions
and the only way to avoid thatwas to roll it over to a roth
ira. Well, as we mentionedon the show many times, that to
us was a miss a mismatch,like why like just clean that up and
you know, true to form,that was one of the things that got
cleaned up here recently. So goodnews is now if you leave money in
(13:41):
those old plans, then it's Wrothmoney. No longer will you have those
required distributions. Exciting and really interestingchanges and important changes to be aware of
as we talk with our retirement planningprofessionals from Class Financial. Don't forget.
If you ever have a question,you can call the show. We'll get
you right on the air. Sixoh eight three two one thirteen ten.
That's three two one thirteen ten getsyou on the air with CJ. Closs
(14:01):
and Malia Quavis, our retirement planningprofessionals from Class Financial. You can learn
more online COSS Financial dot com.That's Coss k l AA S Financial dot
com and the telephone number six oheight four four two five six three seven.
No charge for the initial gets toknow you appointment at Loss Financial.
It will be complementary to you again. The telephone number for Class financials office
(14:22):
here in Madison six o eight fourfour two five six three seven. We'll
talk about contribution limits with Malia andget more details on that and we'll take
your call next as Money in Motionwith Class Financial continues right here on thirteen
ten WIBA. This is Money inMotion with Class Financial, a fun and
(14:43):
informative show designed to help you getanswers to all your retirement questions in one
place. Well minds are open foryou right now at six oh eight three
two one thirteen ten. That's threetwo one thirteen ten gets you on the
air with our retirement planning professionals,Malia Quavis and CJ. Closs. Of
course they come to us from CossFinancial online, Coss Financial dot com.
(15:03):
That's k LaaS Financial dot Com.Telephon umber for the office right here in
Madison. Six oh eight four fourtwo five six three seven. No charge
for that. Initi'll get to knowyou, Appoyment dech Loss Financial. It
will be complimentary to you again.They're telephone number six oh eight four four
two five six three seven. Newyear, new rules when it comes to
taxes and other things we were concernedabout, not worried about, concerned about
(15:26):
and aware of. That's the wordI'm thinking of, is aware of when
it comes to planning for twenty twentyfour. And Malia, what about things
like limits for contributions in twenty twentyfour when it comes to our retirement accounts.
Yeah, we get really excited atthe beginning of the year. You
know, everybody's setting down their healthgoals usually and hopefully, from our perspective,
(15:48):
their wealth goals as well, andso it's really a good time to
reassess how much you are able toshelter away into your retirement accounts. And
so for some people, maybe they'restarting the year with a little bit of
a pay raise, even a fewpercent, and we would recommend you look
at diverting some of that. Sayyou got a three to four percent increase,
(16:08):
maybe you take a percent or twoand direct that to your four oh
one K or other retirement plan contributions. So keep that in mind as you're
sitting down and looking at what canI do for the year. The reason
we bring this up right now,at this point in January so early on,
is that for those who are contributingto a retirement plan at work,
(16:29):
you have to understand that any amountyou contribute needs to be in by December
thirty first of that year through yourpayroll in order to get the deductions you
know, right, you know thefor tax purposes with iras, those are
quite different. You do have uptill April fifteenth, the very year,
(16:49):
so to get your contributions in there. So we want to make sure that
if you're putting into a retirement planat work, that you look at how
many pay periods you're gonna have.Obviously you can put more in at different
times of the year, but wewould say get on a system, look
at how much you can put away, and see if you can in fact
(17:10):
put more in or perhaps even maxit out. So today, when we're
talking about four oh one K,four oh three B and most four fifty
seven plans out there, and thefederal government's Thrust Savings Plan, the TSP
plans in twenty twenty four, youshould know that they've been increased to twenty
three thousand for this year that youcan put into those, and you have
(17:33):
a seventy five hundred dollars catch upfor those people who are over fifty years
of age, so total of thirtythousand, five hundred in in tax hier
twenty twenty four. Now IRA contributionlevels have increased as well. They're up
to seven thousand plus one thousand dollarsketchup for those over fifty, so a
total of eight thousand dollars. Andone thing that the Secure two point Zero
(17:59):
Act twenty twenty two suggested is thatwe will start seeing an annual cost of
living adjustment for the iras going forward. It just happens to remain at the
thousand dollars for twenty twenty four.The catch up. Another change we see
is qcds. So in twenty twentyfour, and we discuss this quite frequently
(18:21):
on this show. This is withregards to those required minimum distributions and where
you can choose to direct them.So we're talking about qcds, which are
qualified charitable distributions, and so thatis a way in which you could direct
some of those rmds and by doingthat, and as long as they are
sent directly to a qualified charity,again not your children, but a qualified
(18:45):
charity that allows for you and theorganization to skip the tax portion the taxing
of it, which everybody smiles about. And previously the maximum annual limit for
that was one hundred thousand. Thatwas the most she could do per year.
I mean some people maybe it's fivethousand dollars, but it's good to
know what the limits are. Nowin twenty twenty four, that's actually increasing.
(19:08):
This is linked to inflation and anew amount set is one hundred and
five thousand, so just be awareof that. Again, we're talking about
rmds and qcds and how they interact. And the rmd ah that CJ just
mentioned varies according to what year youwere born. But just to specify special
(19:30):
note, you must be seventy anda half or older. You don't have
to wait to be rmd AG ashe was speaking of to be able to
make a QCD. Okay, somany times people are looking at I'm charitably
minded. I need to reduce theamount I'm keeping in my tax deferred accounts
because eventually I'm going to have tobe pulling those required minimum distributions. Some
(19:52):
people get ahead start on that,and they can start as early as seventy
and a half. So that's agreat great thing to consider as you're sitting
now with your acountant or your financialadvisor. Some other changes we see additional
employer contributions now can be eligible forROTH treatment, so this actually went into
effect last year. However, itdoes require that employers have updated systems and
(20:17):
paperwork in order, but the pointof it is employers are permitted, although
it's still discretionary to deposit matching andor non elective contributions to employees' designated WROTH
accounts. This used to be notthe case. So this is actually a
really nice thing. Again, everyemployer might not be quite doing it yet,
(20:37):
but it's nice to know that that'sdefinitely now in place for many The
iris is also raised phase out incomeranges for iras, so many people understand
if they have a workplace retirement plan, they might not be able to contribute
to a traditional IRA. Currently,for twenty twenty four, the phase out
range is now between seventy seven thousandand eighty seven thousand and twenty twenty four,
(21:03):
so those those totals went up byabout four thousand dollars. So what
that means is more people qualify fora deduction based on their contributions. And
then now the income limit for rothiras is also higher. In twenty twenty
four, the maximum you can earnand still contribute to a roth ira is
one hundred and sixty one thousand forsingle tax filers, that's up from one
(21:23):
hundred and fifty three thousand, andif you're married and filing jointly, your
joint modified adjusted gross income must beunder two hundred and forty thousand. So
there's some changes every year, andtoday we're just highlighting some of the main
ones that concern our clients, butcertainly know this list is not exhaustive.
(21:44):
Today there's plenty of other IRS adjustments, but we didn't want to bore you
for twelve hours today. It's nicetoo that the IRS is making this stuff
digital nowadays because the numbactories that wordthat were sacrificed in years past to get
this information. Yeah, a lotof solid, great information speaking of online
and things available online. Cossfinancial dotcom. That's k l a a s
(22:10):
Financial dot com. It's a greatwebsite and resource to learn more about COSS
Financial their separate divisions. Also signup for the weekly Market Pulse newsletter all
at Cossfinancial dot com. That's kl a a s Financial dot com and
their telephone number six oh eight fourfour two five six three seven. No
charge for that initial gets to knowyou appointment tech Loss Financial. It will
(22:30):
be complementary to you again that numbersix oh eight four four two five six
three seven will take her down thehome stretch. Get some other other changes
you need to be aware of andwhilst do the class quiz lush leak next
as Money in Motion with Coss Financialcontinues right here on thirteen ten wib E.
(22:51):
This is Money in Motion with ClassFinancial, a fun and informative show
designed to help you get answers toall your retirement questions in one place.
Talking this morning with our retirement planningprofessionals from Class Financial, CJ Closs and
Malia Quavis, I mentioned the websitebefore the break, it's a great resource
learn more about COSS Financial. IfI mentioned the weekly market paulse newsletter,
(23:12):
it's a great little email you receivedonce a week in your inbox. You
sign up for it. It's gota little snapshot of what's been going on
in the markets. Also linked tothe most recent podcast again that available to
you at Cossfinancial dot com. Theirtelephone number six oh eight four four two
five six three seven. No chargefor that initial get to know you appointment
at Coss Financial. It will becomplimentary to you again their number six oh
(23:33):
eight four four two five six threeseven. Into the new year, talking
about planning and things to be awareof when it comes to twenty twenty four.
Things that have changed, some ofsome of the bigger things, don't
forget. As we talked this morning, all this great information is available at
the podcast at classfinancial dot com andCJS. We kind of wrapped things up
this morning. There are other changes, as I Omalia mentioned as well that
(23:56):
there's a lot of stuff changing everyyear. This is kind of These are
kind of the bigger things that thatpeople encounter. But what are some of
the other things that are kind ofgrabbing your attention? CJ. Yeah,
I know you're right, Sean,there's a lot and WILLI mentioned that.
So certainly, if there's anything wedon't mention, feel free to either look
it up online or give us acall. But we're trying to hit on
(24:18):
a few big areas that hopefully,if you're paying attention enough while you're at
work or at home, that itwill say, hey, that applies to
me. So another area of changehas been there's higher FSA and HSA contribution
limits. So FSA stands for FlexibleSpending accounts. HSA stands for Health savings
accounts. You know our industry,we love our acronyms. But in twenty
(24:41):
twenty four, those with flexible spendingaccounts can contribute up to three two hundred
dollars pre tax to pay for healthcarecosts. And of course by contributing to
the account pre tax, you canreduce your taxable income and ultimately what you
owe the government. Now, FSAsare different than hsas, so the irs
also raise a contribution limit for healthsavings accounts to four one hundred and fifty
(25:06):
dollars for single filers and eighty threehundred dollars for families. Now those limits
are over seven percent higher than theywere in twenty twenty three. And also
remember there is a catchup of onethousand dollars per individual on the HSA contribution
if you're over the age of fiftyfive, so really good provisions there.
(25:26):
Do work with your account or financialadvisor to understand the difference between an FSA
and an HSA. You have tobe eligible for an HSA or an FSA,
and so again, if it appliesto you, you'd probably know what
I'm talking about. Another area ofadjustment is student loan match benefits, So
this is very interesting. Starting thisyear, employers will be able to match
(25:48):
employee student loan payments with matching paymentsto a retirement account, giving workers an
extra incentive to save while also payingoff their education loans. That means if
your employer offers to match your fouroh one K contributions, you could still
get that matched money without ever depositingfunds into your retirement account. Instead,
(26:11):
your monthly student loan payment could countas that quote unquote contribution. So this
is a big deal. Think aboutit. You know, prior it used
to be, hey, we'll youknow, match you dollar for dollar up
to three percent. Well what ifyou're just out of college and you get
a good job and you want tosave into the four oh one K,
but you need to be paying offyour student loans, you know, which
is good? People like us financialadvisors would say, do that. Well,
(26:33):
what you were doing was leaving freemoney on the table with your employer.
Well, now employers can add thisstudent loan matching piece, which is
if you're if you can prove thatthose moneies are going towards a student loan,
we will say that qualifies for ourmatching dollars. So really really cool
provisions. And then finally, there'salso this option. Some of you have
heard about it. I know itbecause clients come in and talk to me
(26:56):
about it. It's five twenty nineplan. Assets have new provisions. So
if you have held your five totwenty nine plan five twenty nine is typically
known as a college savings plan,that money can now be rolled over to
a wroth IRA for the beneficiary.However, there's a bunch of stipulations.
One I already mentioned, it hadto have been open for at least fifteen
years. It is still subject toannual wroth contribution limits, and it has
(27:21):
an aggregate lifetime limit for each beneficiaryof thirty five thousand dollars. The rollover
gets treated as a contribution towards asa contribution towards the annual wroth Ira contribution
limit. So just think of itas, Hey, if what if I'd
put money in a five to twentynine for my kid? They don't go
to college or can't you know,have educational expenses to make deductions on a
(27:45):
qualified basis from that five twenty nine, what can they do? The money's
kind of stuck. While good newsis that's not the case. You could
for that beneficiary do wroth Ira contributionsup to thirty five thousand dollars over a
lifetime, So there's another good optionfor those five twenty nine funds. Fantastic
stuff this morning, as always fromour retirement planning professionals from Class Financial,
(28:07):
CJ. Closs and Malia Quavis.Learn more online about Class Financial grave website
classfinancial dot com. That's k lAasfinancial dot com. Now the telephone number
for the office right here in Madisonsix'h eight four four two five six
three seven. No charge for thatinitial get to know your appointment Tech Loss
Financial. It will be complimentary toyou again their number six oh eight four
four two five six three seven.Go want to hold on to that telephone
(28:29):
number now as well, because it'stime for the class quiz question of the
week. It works like this andjust a moment, I'll ask you the
class quiz question the week. Youwill then have thirty minutes from the inter
Today's program to call the Class Financialoffice right here in Madison at six oh
eight four four two five six threeseven. If you are the first call
with correct answer, you win thisweek's prize, which is a twenty five
dollars gift card to Buffalo Wild Wings. This week's closs quiz question the week
(28:52):
is this, what is the amountof the standard deduction for married couples filing
jointly for tax year twenty twenty four. Is it twenty five thousand dollars or
twenty nine thousand, two hundred dollars. Telephone number six oh eight four four
two five six three seven, firstcall correct an So when that twenty five
dollars gift card to Buffalo Wild Wings. Don't forget as well. That's Coss
(29:15):
Financials office right here in Madison.Their number six oh eight four four two
five six three seven C J.Maleia. It's always informative and great hanging
out with you guys. You enjoyedthis beautiful day. Thank you. Take
care. Guys. Speaking of retirementafter a nearly fifty while fifty year career,
Mark Cain is retiring over at Channelthree. Tomorrow will be his last
day. He'll be joining us nextright here on thirteen ten WIBA. This
(29:42):
is Money in Motion with Coss FinancialAsset Advisors, LLC, a registered investment
advisor registered with the SEC. Thecontent of this show is for informational purposes
only and should not be considered individualinvestment advice. Class Financial does not offer
tax or legal advice. Any opinionoffered during the course of this show is
(30:04):
the opinion of that particular investment advisorrepresentative, and not necessarily the opinion of Class Financial
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