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Michael Traxler Wealth Management, LLC

Retirement Account Rules to Consider

Hello Everyone  –

Financial markets have perked up quite a bit in the past 4 months. Many different stock indexes have rallied as much as 15-20% off the lows so far. Just in the first 25 trading days or so of 2023, the S&P 500 is already up 8%.  This means stocks are off to a good start this year.

With the tax deadline coming up, here are some things to be aware of:

RMD Rules for 2023 – This is the required minimum distribution each year from an IRA. Last year the required age to start this was 72, and this year it changes to 73.  This gives you one more year of tax deferred growth if you don’t need the money just yet.

Qualified Charitable Distributions – This allows you to donate directly to a charity from your IRA and not pay taxes on the distribution. It’s a nice tactic, especially if you cannot otherwise deduct your charitable gifting. You must be 70 ½ to do this and the annual cap is $100,000

College 529 Plans – These now have the potential to be converted to a Roth IRA down the road should a student not use up all the money for schooling.  There are stipulations, but this is a nice feature as it allows us to potentially use college funding to help plan for the child’s retirement.

Email with any questions.

Best Regards,