January 29, 2022 Issue, Page 3 of 10

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JAil log 3 JAil log January 29, 2022 News Watch for changes in RMDs Providing Comfort and Support for End of Life Choices If you’re a certain age, you’ll and remain an asset, the better making this move, you can ex- Hospice care provides medical services, emotional support, and spiritual re- need to withdraw money from for you. clude the RMDs from your tax- some of your retirement ac- More flexibility in planning able income. Before taking this sources for people who are in the last stages of a serious illness, such as cancer counts each year. But in 2022, for retirement income – The action, though, you’ll want to or heart failure. Hospice care also helps family members manage the practical the amount you must take out word “required” in the phrase consult with your tax advisor. details and emotional challenges of caring for a dying loved one. may be changing more than in “required minimum distribu- Here are a couple of final other years – and that could tions” means exactly what it points to keep in mind. First, affect your retirement income sounds like – you must take at not all your retirement ac- For questions regarding hospice service or eligibility, contact: strategy. least that amount. If you with- counts are subject to RMDs Here’s some background: draw less than your RMD, the – you can generally keep your Carrie Perry, RN/ Adminsistrator Once you turn 72, you gener- amount not withdrawn will be Roth IRA intact for as long as ally must start taking with- taxed at 50%. So, in one sense, you want. However, your Roth drawals, called required mini- your RMDs take away some 401(k) is generally subject to Pat Welsh, RN/ Coordinator of Patient Care mum distributions, or RMDs, of your freedom in managing RMDs. If you’re still work- from some of your retirement your retirement income. But ing past 72, though, you may Some of the most common conditions are: accounts, such as your tradi- now, with the lower RMDs in be able to avoid taking RMDs tional IRA and your 401(k) or place, you may regain some of from your current employer’s • Cancer • Failure to Thrive • End Stage Cardiac Disease (CHF) similar employer-sponsored this flexibility. (And keep in 401(k) or similar plan, though • End Stage Cerebrovascular Disease (CVA) • End Stage Amyotrophic plan. Each year, your RMDs are mind that you’re always free you’ll still have to take them Lateral Sclerosis (ALS) • End Stage Pulmonary Disease (COPD) determined by your age and ac- to withdraw more than the from your traditional IRA. count balances. This year, the RMDs.) • End Stage Liver Disease • End Stage Renal Disease • AIDS/HIV life expectancy tables used by Of course, if you don’t re- Changes to the RMD rules • End Stage Neurological Disease such as Parkinson’s or Alzheimer’s the IRS are being updated to ally need all the money from don’t happen too often. By be- reflect longer lifespans. This RMDs, even the lower amount ing aware of how these new, may result in lower annual may be an issue for you – as lower RMDs can benefit you, Carrie Professional, Passionate Passionate RMDs than you’d have to take mentioned above, RMDs are and becoming familiar with all Perry, RN Professional, if this adjustment hadn’t been generally taxable. However, if aspects of RMDs, you may be made. you’re 70½ or older, you can able to strengthen your overall Advance, Attentive... Advanced, Attentive If you’ve started taking transfer up to $100,000 per retirement income situation. RMDs, what does this change year from a traditional IRA ..Our differenceIsisOur Our Difference our Care care mean to you? It can be a posi- directly to a qualified chari- This article was written by Ed- tive development, for a few table organization, and some, ward Jones provided by Robert reasons: or perhaps all, of this money Stephens of Edward Jones Finan- Potentially lower taxes – may come from your RMDs. By cial Advisor. Have you ever considered becoming Your RMDs are generally tax- a hospice volunteer? able at your personal income tax rate, so the lower your A fulfilling experience in the spirit RMDs, the lower your tax bill might be. of giving and receiving. Possibly longer “lifespan” for Edward Jones, Member SIPC C retirement accounts – Because your RMDs will be lower, the accounts from which they’re d Jones | 2014 W. 3rd | Elk City, OK 73644 omforting H issued – including your tradi- tional IRA and 401(k) – may be able to last longer without Robert Stephens | F (580) 225-3156 | r ands Hospice LLC becoming depleted. The longerephens |(580) 225-3156 Financial Advisor | [email protected] these accounts can stay intact