Save Ottumwa Post March 1, 2023

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Look For The Homes Section Inside •••••MARCH 01 , 2023•••••

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SAVE OTTUMWA POST the requirement applies only if the employee’s prior-year wages from the employer sponsoring the plan exceed $145,000 in the previous taxable year. The option to make New rules in effect in pre-tax catch-up contribu2024 Matching contributions tions will continue in 2023. for those paying student When deciding whether to make pre-tax or Roth loans contributions for 2023, Employers will have the consider that your future ability to offer contribucatch-up contributions will tions to workplace retirehave to be Roth contriment savings plans that butions if you earn more match the amount of than $145,000. student loan debt repaid by an individual employee No RMDs for Roth workin a given year. place plans Rollovers of 529 educa- Under current law, those with Roth 401(k)s or Roth tion savings plan bal403(b) plans are subject ances to Roth IRAs Beneficiaries of 529 plans to the same required distribution rules as stanthat have been in place dard workplace plans. for 15 years or more can However, the new law will transfer assets from the eliminate RMDs for work529 plan to a Roth IRA. place-based Roth savings The transfer is subject to plans, comparable to curthe beneficiary’s annual rent rules for Roth IRAs. contribution limit and up to a lifetime maximum of Emergency savings $35,000.

New emergency savings This provision may allevi- accounts, associated with an employer’s retirement ate a parent’s potential plan, can be established concern that they are for many employees. It over-funding a 529 plan. will allow them to accuFor example, if a child qualifies for scholarships, mulate up to $2,500 in the account, with penalty-free or school expenses are access to the funds alless than anticipated, lowed once a month, to leftover 529 amounts could be transferred to the meet current needs. beneficiary’s Roth IRA. Other key changes beRequires catch-up con- yond 2024 Other provisions of the tributions to be made SECURE 2.0 Act that will as Roth contributions take effect in 2025 inusing after-tax dollars Catch-up contributions for clude: • The ability of workparticipants aged 50 or older must be made on a ers ages 60 to 63 to make catch-up contribuRoth basis under 401(k), 403(b), and governmental tions of $10,000 per year above the standard limit 457(b) plans. However, of tax-deferred growth of earnings. Distributions must commence by April 1 of the year after turning 73.

Enhancing Your Retirement Plan through the SECURE 2.0 Act The newly-enacted SECURE 2.0 Act contains significant changes that may affect how you plan for retirement. The bill, passed by Congress and signed into law by President Biden in late 2022, could help you bolster your retirement savings and income strategy.

Here are some of the key provisions included in the new law, which are being phased in over the next several years: New rules now in effect Required minimum distributions (RMDs) start after age 73 Until recently, RMDs from traditional IRAs and workplace retirement savings plans, such as 401(k) or 403(b) accounts, had to begin after reaching age 72. Now individuals can wait until reaching age 73, extending the benefit

MARCH 01 , 2023 for workplace retirement plans.

• A requirement that employers with 401(k) or 403(b) plans automatically enroll eligible employees in a workplace savings plan, starting at a contribution rate of at least 3% (workers can choose to opt out of the plan).

• The ability of parttime workers to participate in a workplace retirement plan once they’ve worked at least 500 hours for two consecutive years, rather than the current threeyear threshold.

What does it mean for you?

How can these changes enhance your own retirement savings plan? It may be beneficial to talk to your financial advisor to determine how you might be able to leverage the new rules listed here and others to help secure your retirement savings plan.

Duane J Lusson, CFP, ChFC, CLU, MSFS, is a Private Wealth Advisor with Ameriprise Financial Services, Inc. in Ottumwa, Iowa.

He specializes in fee-based finan-

cial planning and asset management strategies and has been in practice for 30 years. To contact him, call 641-684-4200 or stop by his office at 527 W. Second in Ottumwa, Iowa.

Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.

Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.

Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2023 Ameriprise Financial, Inc. All rights reserved.

MARCH 01 , 2023

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FREECOLLEGE STEP

ONE STEP

TWO

Fill out the IHCC Scholars Inquiry Card Students who are between the ages of 16 and 24, are United States citizens or legal residents, or meet specific income guidelines may qualify for FREE COLLEGE! Complete the inquiry card at www.indianhills.edu/scholars

Receive free tuition, a short-term certification and funding to cover college-related expenses such as transportation, fees & meals!

Questions? Jennifer Rotole (641) 683-5336 | jennifer.rotole@indianhills.edu

SCAN & APPLY

Apply to Indian Hills!

Enroll in one of the following programs to qualify.

• Commercial Driver Training • HVAC and Refrigeration • Short-term Welding Certifications

Kids ages 3 & 4

(2s turning 3 by Sept. 15)

Centers in

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WE ARE HAPPY TO ANNOUNCE AFTER 83 YEARS IN BUSINESS

“MIKE O” IS RETIRING

RETIREMENT SALE CONTINUES

NEW ITEMS ADDED DAILY!

SAVE

40

%

OFF*

STOREWIDE

*SOME EXCLUSIONS MAY APPLY. SEE STORE FOR DETAILS.

EVERYTHING MUST GO! NEW ITEMS ADDED DAILY!

·POWER TOOLS* ·HOUSEWARES ·HAND TOOLS ·GIFTWARE ·LAWN & GARDEN ·PLUMBING ·PAINT & STAIN ·ELECTRICAL ·RENTAL EQUIPMENT* ·HARDWARE

*DISCOUNTED AT 20% OFF

*PRICED TO SELL-- DISCOUNT DOES NOT APPLY.

NOW CLOSED ON SUNDAY

500 WEST MAIN STREET • OTTUMWA, IA | (641)682-4528 | HOURS: MON-SAT 8-5, CLOSED SUNDAY *SEE STORE FOR DETAILS. ALL SALES FINAL. MERCHANDISE AS IS. NOT VALID ON PAST PURCHASES. SOME EXCLUSIONS MAY APPLY. EXCLUDES: SCREEN & WINDOW REPAIR AND KEYS.

MARCH 01 , 2023

MARCH 01 , 2023

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Ray’s Longbranch Homemade 1/2 lb. Tenderloins & Hamburgers Drakesville, IA • 722-3355

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MARCH 01 , 2023