Valent Wealth

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 Any money withdrawn from your HSA for nonmedical reasons is considered taxable income and faces an additional 20% penalty.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

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: ? Review Your Coverage Needs: Decide if you need Part A, Part B, or both ? Enroll Today: Visit ssa.gov or call your local Social Security office ? 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.

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.

Join our Valent team on Thursday 3/6 at 8 PM EST to discuss why you shouldn’t drink the S&P 500 Kool-Aid and learn how you can execute a more reliable investing strategy based on empirically tested academic investing principles. https://lnkd.in/g5tw2NYR

Here's a stunning fact: Over 29 million forgotten retirement accounts hold nearly 1.65 trillion dollars in the U.S. With frequent job changes, it’s easy for retirement accounts to get lost. Left unattended, they can even be turned over to the state as unclaimed property. Here’s how to find them: 1.) Check with past employers. HR or plan administrators can provide account details. 2.) Search online tools like the National Registry of Unclaimed Retirement Benefits or MissingMoney.com. 3.) Use state or federal resources to track unclaimed funds. Good news: The SECURE Act 2.0 has directed the Department of Labor to create a comprehensive, searchable database to make locating lost retirement accounts easier than ever. This tool is expected soon. If you or anyone you know has questions about potential missing retirement accounts, please don’t hesitate to contact us.

For many, this is annual bonus payment season. What are your plans for this year’s bonus? Before you start considering your home improvement projects, vacations, or other splurges, any time you receive a lump sum of money, it’s worthwhile to think about the following: Step 1: Pay Off High-Interest Debt Tackle credit card balances first—knocking out high-interest debt can help you manage those costly payments. Step 2: Boost Your Emergency Fund If you haven’t already, set aside 3-6 months of expenses to help pay for unexpected events. Step 3: Grow Your Wealth Evaluate your strategy with tax-advantaged retirement accounts. A financial professional can offer some guidance if you have questions. Step 4: Balance Multiple Goals Not sure where to start? One idea to consider is splitting your windfall. For example: ? 50% to debt repayment ? 30% to savings ? 20% to long-term investments Every dollar you manage intentionally today may improve the outlook for your financial future. Don’t waste these opportunities.

On Valentine’s Day, we celebrate the partnerships that enrich our lives. For us, it’s also a moment to be grateful for the trust our clients place in us and the relationships we’ve built that go far beyond the numbers. The same principles that make personal relationships strong—trust, shared goals, and mutual understanding—are the foundations of how we work with our clients. It’s an honor to be part of your journey and to help shape futures that reflect your goals and values. Wishing everyone a day filled with meaningful connections and a reminder of the importance of partnership in all areas of life.

Did you know: 1. Even the most intelligent and successful investors can become victims of investing schemes and scams? 2. Fraud and scams can be sophisticated and appeal to your most basic desires? 3There are three critical areas you can evaluate to determine the legitimacy of your investing strategy? Get answers to these questions and more by joining our team next Thursday February 20th for an insightful "Verify, Verify, Verify" webinar. https://lnkd.in/gc7e46Au

February is a time when emotions take center stage—whether it's about love, connection, or reflection. It's also a reminder that emotions play a huge role in how we manage our money. Many people spend weeks doing research before buying a car or major appliance but make hasty, reactive financial decisions during market turbulence. Why? Because money isn’t just about numbers—it’s about psychology. The Takeaway: Building wealth isn’t about chasing every last return—it’s about staying the course, even when the road ahead is uncertain or slippery. A well-crafted strategy acts as your map, helping you navigate icy patches while keeping you aligned with your long-term goals.

Here’s a scary fact: Between 2015 and 2021, the IRS identified and stopped 29 million suspicious tax returns and prevented $22 billion in fraudulent refunds. Furthermore, in April 2024, a massive data breach at National Public Data exposed 2.9 billion records, including 272 million Social Security numbers, names, addresses, and other sensitive details. Know the warning signs: ? Calls/emails claiming to be the IRS ? Demands for gift card payments ? Threats of arrest or legal action ? Requests for immediate personal information Remember: The IRS first contacts you by mail, not by phone or email. Act quickly if you suspect tax return fraud: ? Contact the IRS Identity Theft Hotline: 1-800-908-4490 ? File Form 14039 (Identity Theft Affidavit) ? Place a fraud alert with credit bureaus For more information on safeguarding your tax identity, consider visiting the IRS Tax Scams page at https://lnkd.in/gU-iPH6c, or explore resources like the FTC’s Consumer Protection updates. This article is for informational purposes only. In addition to the action items above, we would encourage you to consult your tax, legal, and accounting professionals if you believe you are a target.