Happy New Year!!!!

Everyone at Sjoberg & Holmstrom and Your Safe Money Show wish you a Happy New Year!
We look forward to assisting you with your financial concerns in 2020.
The office will be open at 8 a.m. on Thursday January 2nd.
Call for an appointment at 320-679- 5183.

Your Safe Money Show Highlights 12-28-19

 I’ll go over health care documents you need to have. 

Also what NOT to keep in a safety deposit box and the Ten Commandments of retirement. Listen at 95.5 KBEK Saturday mornings at 7:30. They stream live at kbek.com.

Hear recent shows at the podcast page at yoursafemoneyshow.com.

Merry Christmas!

Everyone one at Sjoberg & Holmstrom Financial Services and Your Safe Money Show want to wish you a Merry Christmas!
Our office will be closed through January 1st. We will open at 8 a.m. on Thursday January 2nd.
You can leave a message at 320-679-5183.

Deadline for RMD's

There’s a deadline in regard to required minimum distributions (RMD’s) coming up that can cost you in penalties and taxes.

 RMDs are a minimum amount of money that the IRS requires you to withdraw from most types of retirement accounts each year starting the year in which you turn 70½. The accounts include Traditional individual retirement account (IRA), Simplified employee pension (SEP) IRA, Savings incentive match plan for employees (SIMPLE) IRA, Traditional 401(k), Roth 401(k), 403(b), and 457(b). Roth IRAs are not subject to RMDs during the original account owner’s lifetime. The deadline for your first RMD — the one for the year in which you turn 70½ — is different. The IRS gives you a little more time to withdraw that first RMD — until April 1 of the following year.

 So, folks who turned or will turn 70½ during 2019 have until April 1, 2020, to take their first RMD. If that’s you, just beware that if you postpone taking your 2019 RMD until 2020, you would end up having to take two RMDs in one year: your first one by April 1 and your second one by Dec. 31, 2020. As a result, you’d likely owe taxes on both of those RMDs in the same year, as RMDs are generally taxable income. And that could hike your tax bill. If you fail to withdraw an RMD in full by any applicable deadline, however, the IRS can penalize you. The agency will tax whatever RMD amount you failed to withdraw on time at 50%.

If you have questions call 320-679-5183 or go to yoursafemoneyshow.com.

Your Safe Money Show Holiday season scams 12 21 19

Taxes and retirement

Gifting

Let’s consider nontaxable and nondeductible giving to friends and family. Every year, you can give up to $15,000 to whomever you want and to as many people as you want. The recipient pays no tax on the gift and you receive no deduction. If you give someone stock, they take over the gains that you had in the stock. When they eventually sell it, they pay the capital gains tax at their rate. If you give more than $15,000, you simply need to file a gift tax return. The gift tax return means that you eat up some of the $11.4 million dollar exclusion that the government gives you before estate taxes kick in (if you’re married, the number is $22.8 million). Those are the facts, but what else is there to consider? First, all gifts to family and friends create an imbalance of power. This is not good or bad, it just is. Some people handle this better than others. So, while the gift is often greatly appreciated, it can also be confusing and affect the nature of the relationship.
If you want more information on gifting call 320-679-5183.
yoursafemoneyshow.com