BCS Wealth Management

The Internal Revenue Service has announced key changes to retirement contribution limits for 2025. Here’s what you need to know: 401(k), 403(b), and 457(b) Plans: * Employee contribution limit: $23,500 (increased by $500) * Combined employer/employee limit: $70,000 (increased by $1,000) * Age 50+ catch-up: $7,500 (unchanged) * ?? And New! Ages 60–63 catch-up: $11,250 Individual Retirement Accounts (IRAs): * Annual contribution limit: $7,000 (unchanged) * Age 50+ catch-up: $1,000 (unchanged) Roth IRA Income Phase-Out Ranges: * Single/head of household: $150,000–$165,000 * Married filing jointly: $236,000–$246,000 Traditional IRA Deductibility Phase-Out: * Single active participants: $73,000–$83,000 * Married filing jointly: $126,000–$136,000 Will any of these increases influence your retirement strategy? Remember, once you turn 73, you must take required minimum distributions (RMDs) from your 401(k) or other defined contribution plans in most cases. Withdrawals from these plans are taxed as ordinary income and may be subject to a 10% federal income tax penalty if taken before age 59?. Similarly, once you reach age 73, you must begin taking RMDs from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59?, may be subject to a 10% federal income tax penalty. If you’re charitably inclined ask us about Qualified Charitable Distributions (QCDs), a giving strategy that can maximize your charitable gifts and satisfy the IRS requirements all while being tax efficient. With a Roth IRA, to qualify for tax-free and penalty-free withdrawal of earnings, distributions must meet a 5-year holding requirement and occur after age 59?. 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. #RetirementPreparation #FinancialFuture #2025Savings

? April 15th is around the corner—Have you maximized your 2024 IRA and HSA contributions? As the April 15 deadline approaches, it’s important to review your retirement savings and understand the potential tax advantages for the 2024 tax year. Reminder of Contribution Limits: ?? IRA (Traditional or Roth): $7,000 for individuals under 50 $8,000 for those 50 and older ?? Health Savings Account (HSA): $4,150 for single coverage $8,300 for family coverage Additional $1,000 catch-up for those 55+ With just a few weeks remaining, review your contribution status and consult with a financial professional to check whether you’re taking advantage of these opportunities and whether they align with your overall financial strategy. Once you reach age 73, you must begin taking RMDs from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59?, may be subject to a 10% federal income tax penalty. If you’re charitably inclined ask us about Qualified Charitable Distributions (QCDs), a giving strategy that can maximize your charitable gifts and satisfy the IRS requirements all while being tax efficient. With a Roth IRA, 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 59?. 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. Once you start Medicare, you can no longer contribute pretax dollars to your health savings account (HSA). Any money withdrawn from your HSA for nonmedical reasons is considered taxable income and faces an additional 20% penalty. This penalty is void after the age of 65; however, it will still become taxable income.

A little planning today can bring peace of mind for tomorrow! Make life easier for your loved ones with a thoughtful estate plan.

Happy St. Patrick's Day! ??? Our team wishes you a day filled with luck, joy, and success. May the luck of the Irish bring you prosperity and happiness in all your endeavors.

Happy Birthday, Audrey! We hope your day is filled with all of your favorite things! ??

?? In this episode of The Benchmark, Nick sits down with Nathan and Myra to provide 10 practical steps you can take today to simplify your estate for your heirs. Estate planning isn’t just about having a will—it’s about creating a clear, thoughtful plan that makes things easier for your loved ones when it matters most. From organizing key documents and updating beneficiaries to considering trusts and managing taxes, we cover the essential strategies that can save time, money, and stress for your family. Whether you’re starting your estate plan from scratch or reviewing an existing one, this conversation will give you actionable insights and ideas to help ensure your wishes are carried out smoothly. ? Topics We Cover: ? The importance of organizing key documents ? Why updating beneficiary designations matters ? How consolidating accounts simplifies the process ? The role of trusts in protecting your legacy ? Managing family dynamics and potential conflicts ? Estate tax strategies to keep in mind for 2025 and beyond ?? If you’re ready to align your estate and financial plans, the team at BCS Wealth Management is here to help. https://lnkd.in/eT6t7gQH

Did you turn 73 in 2024? Don’t miss your first Required Minimum Distribution (RMD) deadline! ?? Key Deadlines: 1. April 1, 2025: Final deadline for your 2024 RMD ?? ?? NOTE—Only applies if you didn’t take it in 2024 ?? Based on December 31, 2023, account balance 2. December 31, 2025: Deadline for your 2025 RMD ?? Based on December 31, 2024, account balance ?? Important Notes: ?? Applies to traditional IRAs, 401(k)s, 403(b)s, and other tax-deferred accounts ?? Roth IRAs are exempt during your lifetime ?? Current employer 401(k) may be exempt if still working ?? If you’re charitably inclined ask us about Qualified Charitable Distributions (QCDs), a giving strategy can maximize your charitable gifts while being tax efficient and satisfying the IRS’ requirements. ?? Caution: Failing to take the full RMD can result in a 25% penalty on the amount not withdrawn (reducible to 10% if corrected promptly). An effective RMD strategy is key to optimizing your retirement income. Partner with a financial professional to create a distribution strategy that manages taxes and aligns with your long-term goals. Remember, once you turn 73, you must take RMDs from your 401(k) or other defined contribution plans in most cases. Withdrawals from these plans are taxed as ordinary income and may be subject to a 10% federal income tax penalty if taken before age 59?. With a Roth IRA, 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 59?. 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. #RetirementPreparation #RMDs #PersonalFinance

A big shoutout to Early Bird's Coffee Co for setting up at our office today! Our team truly appreciates the delicious coffee and the boost it gave us. Thank you for fueling our productivity and making our day brighter! ???

Ever wonder who’s really managing America’s wealth? The answer might surprise you. ?? 49% of women now serve as their households’ financial decision-makers, up from 41% in 2021! To put that in perspective: Before 1974, women often couldn’t even open a bank account without a male co-signer. Today, they’re projected to control $34 trillion in U.S. investable assets by 2030. What makes women exceptional financial leaders? Research shows they: ? Tend to take a more patient approach to investment decisions ? Maintain strategies during market volatility ? Champion sustainable and socially responsible investments ? Know when to seek guidance Women’s History Month is a powerful reminder of women's progress in pursuing financial independence and leadership. As more women take control of their financial futures, opportunities to help build lasting wealth, create financial strategies, and shape meaningful legacies have never been greater. #WomensHistoryMonth #WomenInFinance #FinancialEmpowerment

? ? Spring Forward This Sunday! ?? Daylight saving time starts Sunday, March 9—don’t forget to set your clocks forward one hour. Here’s to longer, brighter days ahead! #DaylightSavingTime #SpringForward #MoreSunshine