Cambria Wealth Management

? 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. 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 Any money withdrawn from your HSA for nonmedical reasons is considered taxable income and faces an additional 20% penalty.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. #RetirementPreparation #TaxStrategy #FinancialWellness

? Final Reminder: Medicare General Enrollment Ends March 31! The general enrollment period (GEP) is the chance of enrolling in Medicare if you missed doing so when you first became eligible (the initial enrollment period [IEP]). ?? What’s the difference between the IEP and the GEP? ?? Initial Enrollment Period (IEP): ??Who: New Medicare-eligible individuals (turning 65 or newly disabled) ??When: A seven-month window—three months before, the month of, and three months after your 65th birthday ??What: Enroll in Part A (hospital coverage) and/or Part B (outpatient care and other medical services), with the option to add Part C (Medicare Advantage) or Part D (Prescription Drugs) ?? General Enrollment Period (GEP): ??Who: Anyone who missed their IEP and doesn’t qualify for a special enrollment period ??When: January 1–March 31 each year ??What: Enroll in Part A and/or Part B only. You must wait for the next enrollment window to add Part C/Part D. ? Take Action Before March 31st: 1. Review Your Coverage Needs: Decide if you need Part A, Part B, or both 2. Enroll Today: Visit ssa.gov or call your local Social Security office 3. Plan Ahead: Mark your calendar for the next chance to add Part C or Part D We have some resources at our offices if you have questions about navigating Medicare. #Medicare #HealthcareCoverage #Retirement

? ? 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

? Business Owners: The Federal Tax Deadline is March 17 Key Filing Requirements: S Corporations: ?? File Form 1120-S to report income, deductions, and credits ?? Distribute Schedule K-1s to shareholders Partnerships: ?? File Form 1065 to report business income ?? Distribute Schedule K-1s to partners Extension Option: ?? File Form 7004 for a six-month extension ?? If they extended, the new deadline would be September 15, 2025 ?? Note: An extension only extends the filing deadline, not the payment due date With the March 17 deadline approaching, double-check all documentation for accuracy and completeness. If you anticipate any issues meeting the deadlines, consult with your tax, legal, or accounting professional and consider filing for an extension. #BusinessTaxes #TaxDeadline #PersonalFinance

?? Did you know that the Social Security death benefit has remained at $255 since 1954 despite increases in funeral costs over the decades? However, the Social Security Survivor Benefits Equity Act proposes raising the one-time payment to $2,900 starting in 2025, with annual inflation adjustments thereafter. The bill is currently under consideration in Congress and may be considered again at a later date. One important reminder: Eligible spouses or children must apply to receive this benefit—it isn’t automatic. If you have questions about Social Security benefits or preparing for unexpected expenses, let’s connect. #SocialSecurity #Benefits #Legislation #RetirementStrategy

"The arc of the moral universe is long, but it bends toward justice." ??????????????? Dr. Martin Luther King Jr.'s legacy isn't just history—it's a call to action we carry forward. His vision of dismantling systemic inequality and building communities rooted in respect, love, and diversity guides us today. Each of us has the power—and the responsibility—to work toward the equitable world he imagined. Every effort, big or small, helps bend the arc in the right direction. ??? #MLKDay #SocialJustice

?? Have you ever wondered whether you’re getting the most reward points possible from your credit card spending? Many of us have been using the same credit cards for years. We may have originally chosen these cards for airline miles and hotel points, but it's worth looking at how these reward programs can help you save money. Here are a few tips that can help you make the most of your credit card rewards: ??Use different cards for different types of spending: Choose cards whose rewards align with your biggest expenses, such as groceries, travel, and dining out. ??Transfer points strategically: Sometimes, transferring your points to airline partners can give you more value than redeeming them directly. ??If you're getting a new card, research sign-up bonuses: Cards typically offer various bonuses when you sign up. Compare offers to make the most of your decision. ??Power up your points: Remember to shop through reward portals and sign up for all available benefits and targeted offers. Services like Point.me can help you assess your current cards, offer tips on increasing your points, and find deals on travel using points. Small adjustments can add up! #CreditCardRewards #SmartMoney #FinancialTips

?? Think you know everything about Social Security? These facts might surprise you. Social Security may seem simple, but it has complexities that could greatly impact your retirement. Here are some surprising insights: 1?? Beyond Retirement: It's not just about retirement—Social Security includes life and disability insurance. For a young worker, this can mean nearly $948,000 in life insurance value, with 90% of workers having some disability coverage. 2?? Delay Pays Off: Delaying benefits past full retirement age boosts your payout by about 8% per year until age 70. But the right timing depends on your health, work, and overall strategy. 3?? Inflation Protection: Benefits are adjusted annually for inflation through Cost-of-Living Adjustments (COLA). The 2025 COLA is 2.5%, following significant increases in recent years. 4?? Tax Surprises: Depending on your income, up to 85% of your benefits may be taxable, affecting your retirement cash flow. 5?? Spousal Benefits Matter: Even if your spouse hasn't worked, they may be eligible for up to 50% of your benefit. Survivor benefits can also be crucial for your family's financial strategy. 6?? Market Buffer: Social Security provides stable income regardless of market performance, helping cover basic expenses during market downturns. 7?? Lifetime Value: A single person with maximum earnings turning 65 in 2025 could receive $634,000 over their lifetime. For a one-earner couple? Over $1 million! 8?? Income-Based Medicare Costs: Higher earners (above $103,000 individual/$206,000 couple) pay increased Medicare premiums. 9?? International Benefits: Benefits are payable in most countries, though Medicare coverage abroad is limited. ?? Windfall Alert: Government pension recipients may see reduced benefits due to the Windfall Elimination Provision. Why It Matters: Social Security is more than a safety net—it's a strategic retirement asset. Understanding these nuances can help you maximize your benefits. Want to discuss how Social Security fits into your financial future? Let's connect. #Retirement #SocialSecurity #FinancialFuture

?? About a third of 401(k) rollovers end up sitting in cash for over seven years. The cost? Roughly $172 billion in missed growth potential every year, according to a July 2024 report in The Wall Street Journal. Most surprising fact: Many people don't realize their rollover isn't automatically invested, especially younger savers who may be missing years of compound growth. The Reality Check: ?? Stocks have historically earned 7.19% after inflation. ?? Stocks are represented by the S&P 500 Composite Index, an unmanaged index considered representative of the overall U.S. stock market. Index performance is not indicative of the past performance of a particular investment, and individuals cannot invest directly in an index. Make sure your rollovers are not missing out on any potential opportunities. Once you turn 73, you must take the required minimum distributions (RMDs) from your 401(k) in most cases. Withdrawals are taxed as ordinary income and may be subject to a 10% federal income tax penalty if taken before age 59?. #RetirementSavings #WealthBuilding

?? Do you think estate management is just for the wealthy or older generations? Let’s debunk that myth. Estate management isn’t about age or wealth; it’s about starting to protect your wishes and loved ones. 3 Steps to Consider: ??Healthcare Directives: Unexpected events can happen at any age. A healthcare directive takes effect when you are no longer able to make your own healthcare decisions. ??Financial Power of Attorney: Designating someone to resolve your finances if you're incapacitated. It’s designed to help manage legal complications so that your affairs are handled according to your wishes. ??Access to Accounts: In today’s digital world, decide who will have access to your online accounts to prevent future challenges for loved ones. It’s not just about wealth or age—it’s about helping protect what matters most and preparing for the unexpected. What can you do now? ??Start with the basics: Consider setting up a will, setting up healthcare directives, and assigning a financial power of attorney. ??Consult a professional: Consider working with a legal professional to create a strategy that fits your unique situation and can evolve as your life changes. Have questions or think you're too young for this conversation? Let's discuss why preparation is essential, regardless of age or wealth. #EstatePreparation #FinancialFuture #Legacy #WealthBuilding