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As we enter the third quarter of 2024, our Quarterly Perspectives dive deeper into prioritizing long-term retirement savings, mitigating Medicare surcharges, matching investments to the need, and charitable gifting strategies.
PLANNING - Prioritizing long-term retirement savings
- Building Roth IRA assets through Roth IRA contributions, Roth conversions, and/or Roth Defined Plan contributions provides investors an investment option with tax-free growth and withdrawals, thereby helping to mitigate future taxes.
- A Health Savings Account (HSA) can offer triple tax benefits if used for qualified medical expenses in retirement.
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TAX - Mitigate Medicare surcharges
- Medicare surcharges rise with Modified Adjusted Gross Income (MAGI) from two years prior.
- Managing annual income through strategies that include accelerated Roth IRA Conversions and Qualified Charitable Distributions can help reduce future Medicare surcharges.
- Be aware of, and plan for, the “widow penalty” which occurs when a spouse passes away and the survivor’s tax bracket moves from “married filing jointly” to “single,” often resulting in a significant increase in income tax rates and Medicare surcharges.
| Income-Related Monthly Adjustment Amount (IRMAA) | |||
|---|---|---|---|
| MAGI | Medicare Premiums | ||
| Individual | Joint | Part B monthly premium | Part D monthly premium |
| Less than or equal to $103,000 | Less than or equal to $206,000 | $174.70 | Plan premium (PP) |
| Above $103,000 up to $129,000 | Above $206,000 up to $258,000 | $244.60 | PP + $12.90 |
| Above $129,000 up to $161,000 | Above $258,000 up to $322,000 | $349.40 | PP + $33.30 |
| Above $161,000 up to $193,000 | Above $322,000 up to $386,000 | $454.20 | PP + 53.80 |
| Above $193,000 but less than $500,000 | Above $386,000 but less than $750,000 | $559.00 | PP + 74.20 |
| $500,000 and above | $750,000 and above | $594.00 | PP + $81.00 |
INVEST - Match investment assets to the need
- Tailor the allocation of your various investment accounts to meet the need and time horizon for the funds.
- Fund short-term needs with dependable income streams and conservatively invested accounts.
- Fund longer-term needs with more aggressive growth-oriented accounts.
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ESTATE - Tax smart charitable gifting strategies
- Use Donor Advised Funds and/or Designated Funds to mitigate taxes and spread out your charitable contributions.
- Distributions from your IRAs, known as Qualified Charitable Donations, can be used to fund your Designated Fund account.
 |  | |
Donor advised fund | Designated fund | |
| Make a tax-deductible gift and recommend grants to causes you wish to support at your convenience. Plus, children can be named as fund advisors and join you on this charitable journey. | Select one or more nonprofit agencies, locally or worldwide, to be supported. Gifts ensure that your legacy fulfills its intended purpose. |
The INTRUST Quarterly Perspectives are the consensus of the INTRUST Investment Strategy team and are based on third-party sources believed to be reliable. INTRUST has relied upon and assumed, without independent verification, the accuracy and completeness of this third-party information. INTRUST makes no warranties with regard to the information or results obtained by its use and disclaims any and all liability arising out of the use of, or reliance on, the information. The information presented has been prepared for informational purposes only. It should not be relied upon as a recommendation to buy or sell securities or to participate in any investment strategy. The Quarterly Perspectives are not intended to, and should not, form a primary basis for any investment decisions. This information should not be construed as investment, legal, tax or accounting advice. Past performance is no guarantee of future results.
| Not FDIC Insured | No Bank Guarantee | May Lose Value |
Posted:
07/24/2024
Category:
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