The beginning of the new year is the perfect time to discuss the various factors influencing your planning. For example, we can:

• Look at your progress toward your goals and consider any new goals you’ve set for yourself.
• Evaluate your insurance coverages to make sure your risks are minimized.
• Revisit your assets and debt and evaluate whether your risk tolerance continues to be appropriate.

Take a look at the Checklist: What Issues Should I Consider At The Start Of The Year 2023 I’ve included for you. In addition to the ideas above, we can organize you for tax season, so you have a smooth experience. There are many reasons why having a good conversation now can set you up for success later.  

Download Our Beginning of the Year Checklist

  Sometimes the incremental changes that occur year-to-year may not seem like a big deal. In reality, though, they can add up. The planning that we’ve done together can evolve to benefit and strengthen the people and organizations that are important to you. If the checklist I’ve included has helped you identify topics we should plan for, please get in touch to schedule a time for us to discuss them further.

Though the New Year may bring with it a new opportunity to set and achieve financial goals, the thought of making sweeping changes to your budget and lifestyle may be overwhelming. What can you do to improve your odds of success in reaching the goals you've set? Below, we discuss three concrete steps to take to potentially make tackling your financial goals easier and more enjoyable.

Prioritize Your Goals

Not all goals are created equal. For example, paying off $10,000 in high-interest debt may have a far greater impact on your finances than setting aside $5 per pay period for holiday gifts. If you're hoping to reach several financial goals this year, it may be worth spending some time deciding which of these goals is most important to you and how achieving it fits into your overall plan. On the other hand, if one goal is relatively easy to achieve when compared to the others, you may want to prioritize this goal. The satisfaction of checking it off your list may give you more motivation to tackle the tougher ones while also freeing up some extra cash to throw at these goals.

Break Goals Down into Smaller Chunks

As the saying goes, the only way to eat an elephant is one bite at a time. The same holds true for achieving your financial goals. When setting a lofty goal like "save $20,000 this year" or "pay off my student loans," it may be useful to schedule weekly, biweekly, or monthly smaller goals along the way. You may want to schedule periodic increases in your retirement contribution rate, make an extra loan payment each month, or even refinance your loans or transfer balances to a lower-interest credit card to reduce the amount you need to pay each month. At the end of the year, even if you haven't quite met your larger goal, you may be able to gain the satisfaction of reaching the smaller ones. This may give you something to shoot for when outlining your goals for the next year.

Schedule Rewards Along the Way

Any deprivation diet—including a deprivation budget—may make it far more tempting to cheat. And though it may be satisfying to reach your financial goals, doing so at the expense of small pleasures may take some of the joy out of the process. By scheduling rewards or small luxuries along the way, you may be able to renew your motivation and avoid falling into the deprivation-overspending cycle.     Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This article was prepared by WriterAccess. LPL Tracking: 1-05216739

For many investors, 2022 was a wild ride—with interest rate increases, a crypto implosion, and whipsawing values in the major market indices. It might be tough to catch one's breath and look ahead to next year. But the beginning of the year is the perfect time to take stock of your investments, evaluating what worked, what didn’t, and what you might do better next year. Here are four key opportunities to consider that may recharge and reset your finances as you enter the new year.

Review and Refresh Your Financial Plan

If you set goals for the past year, evaluate your progress. Did you spend more than expected? Save less than expected? Or did you manage your goals easily—suggesting a bigger challenge may be appropriate for next year? While setting financial goals for next year, you might also consider the long-term. When do you plan to retire? What do you need to see before getting there—a specific number in your 401(k), a paid-off balance sheet, or something else? Should you stay in your home or downsize? The answers to these questions may help you formulate a more solid plan.

Assess Your Retirement Readiness

Are you on schedule to retire? Are you contributing enough to your 401(k) or IRA? Though the answers to those questions depend on each person's circumstances, some patterns are emerging in savings habits among those in their 20s, 30s, 40s, 50s, and beyond. Check these numbers to see whether you are on track.¹

Age 20 to 29

Average 401(k) balance of $10,500 while contributing 7% of income

Age 30 to 39

Average 401(k) balance of $38,400 while contributing 8% of income

Age 40 to 49

Average 401(k) balance of $93,400 while contributing 8% of income

Age 50 to 59

Average 401(k) balance of $160,000 while contributing 10% of income

Age 60 to 69

Average 401(k) balance of $182,100 while contributing 11% of income

Age 70 to 79

Average 401(k) balance of $171,400 while contributing 12% of income These numbers are simply averages—they do not account for income, sector, or cost of living. They also do not include assets in individual retirement accounts (IRAs), taxable accounts, or other savings accounts. But knowing what those in your general age bracket save, on average, might give you a better idea of your progress toward retirement savings. You should notice that as workers grow older, they tend to contribute a greater percentage of their total income to retirement.

Pay Down High-Interest Debts

With interest rates continuing to rise, credit cards, home equity lines of credit, and other variable-rate loans are likely to grow more expensive.² If you have any adjustable-rate loans, now is a good time to begin paying them off more aggressively.

Calculate Your Cash Reserves

It is a good idea to have some cash held for emergencies during turbulent times. From an unexpected medical bill to a new appliance, having cash on hand may help avoid the stress of paying for sudden expenses. Assessing your cash reserves at the beginning of the new year may give you a good baseline for setting cash accumulation goals. Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking # 1-05337697. Footnotes: ¹ The Average 401(k) Balance by Age, Investopedia, https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp ² What Rising Interest Rates Mean For You, CNN, https://www.cnn.com/2022/09/21/success/what-rising-interest-rates-mean-credit-mortgage/index.html

A list of things to consider as you think about year-end charitable donations

With its family traditions and festive celebrations, the holiday season is the most wonderful time of the year. And according to GivingTuesday.org, the giving in the U.S. alone totaled $2.7 billion to nonprofits and community organizations on #GivingTuesday in 2021, a 6% increase from 2020. Unfortunately, despite the greatest of intentions, many will inevitably make mistakes in how they give, especially if they wait until the last minute. So, here is a list of things for you to think about as you consider your year-end charitable donations.

Make a Plan

Ideally, at the beginning of every year – with your financial professional – you would map out a plan to maximize the tax benefits of your giving. Really think through what is important to you and what you want to support. Is it an organization that supports literacy? Or provides food? Or shelter for families? Creating a plan will help you be less reactive and feel less boxed in when friends ask for your charitable support.

Research Your Charity

It’s easy to get fooled by a charity’s name so you need to do your homework. And beware of scam artists pretending to represent an organization that doesn’t exist. Read a charity’s financial statements to see how they spend their (your) money. Even better, volunteer before you write a check.

Donating Stock

If you have owned stock for more than a year and it has appreciated, then don’t sell it first and then give the cash to charity. Those appreciated assets can be donated directly to charity without you or the charity incurring capital gains taxes (consult your tax professional to be sure).

Selling Your Personal Info

Quite a few charities will rent or sell the addresses, phone numbers, email addresses and detailed social media profiles of their donors, which means you might start getting a bunch of unwanted calls, emails and friend requests. Make sure you review a charity’s privacy policy before you give them your information. And many times, you have to actively “Opt Out” to ensure your personal information is not used.

Ask for A Receipt

Remember, for charitable contributions of $250 or more, you need a donor’s acknowledgement letter. And generally it’s a good idea to obtain receipts, especially when donating goods.

Don’t Delay

Shockingly, a whopping 12% of all giving occurs in the last 3 days of the year! But if you mail a check postmarked after December 31^st, then you might run into trouble. Make it easy on yourself and don’t wait until the last minute.

Money Can’t Buy Happiness, But Maybe Donating to Charity Can?

Consider research from Elizabeth Dunn of the University of British Columbia, Lara Aknin at Simon Fraser University and Michael Norton at Harvard Business School. Essentially what they found in their study is the following:

• Spending money on other people has a more positive impact on happiness than spending money on oneself
• Spending more of one’s income on others predicted greater happiness

Discuss with Your Financial Professional

If you have any questions or need help mapping out your Charitable Plan, set an appointment to discuss with your financial professional.   Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by RSW Publishing. LPL Tracking #1-05318847    

Change may be difficult, especially when you try to change your financial habits. The process might be easier if you take an incremental approach. Do you want to get on top of your finances this year? Are you looking for ways to improve your fiscal health? Here are 12 financial resolutions to consider. Work on a resolution each month in whatever order works for you, and by the end of the year, you may feel a lot happier about your relationship with money.

1. Create a Budget

Sit down and create a budget. It should outline how much money you have coming in and going out. If your expenses exceed your income, look for areas where you may make changes.

2. Pay All Bills on Time

Paying your bills late may be stressful and it costs you money. Utility companies generally charge a fee for late payments, while credit card companies tend to charge penalties and may increase your interest rates. Paying your bills on time may require you to tighten your belt for a month or two until you get ahead.

3. Review Your Subscriptions

Many people end up with subscriptions that they do not use, which wastes money. Look through your bank and credit card accounts to find subscriptions you do not use and cancel them.

4. Pay Down Credit Card Debt

Find some extra money in your budget and devote it to paying down your credit card debt. Start with the cards with the highest interest rates and when paid off, go to the cards with the next highest rates.

5. Track Your Credit Score

A high credit score may make borrowing money at lower interest rates easier, which might save you money in the long run. Your credit score may increase as you pay down your credit card debt. You may also want to download an app. There are many apps that track your credit score and give you tips for improvements.

6. Save for Emergencies

An emergency savings account helps you get through issues like an unexpected car or home repairs with less stress. Find money to set aside and if needed, identify one expense that you eliminate so that you save more.

7. Boost Your Financial Literacy

Regardless of how much you know about finances, there is always more to learn. Listen to a financial podcast, read a newsletter, or make other efforts to brush up on your financial literacy.

8. Start Investing

A cash savings account may prepare you for short-term emergencies, but investments focus on long-term goals such as retirement. If your employer offers a retirement plan, consider participating. Fund your individual retirement account (IRA) each year. If you are self-employed, look into a self-directed 401(k) plan.

9. Save for Something Fun

Saving might be easier when you work toward something fun. If you feel like you do not have any extra money for savings, find an expense to eliminate, and then save the money for something fun.

10. Earn More Money

Brainstorm ways to earn more money. For some people, this may mean taking on a side gig, while for others, it means brushing up on skills and looking for more opportunities in your current career.

11. Update Your Insurance Policies

Review your insurance policies for adequate coverage. Get a few quotes for premiums to compare rates and providers.

12. Consult with a Financial Professional

You do not have to handle everything on your own. Schedule some time with a financial professional to get advice on managing your money.     Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations, nor is it intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. Investing involves risks including possible loss of principal. Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax. This article was prepared by WriterAccess. LPL Tracking # 1-05345916.

After years of saving and planning for their golden years, many people nearing retirement fail to consider the tax burden they may face on income they receive after they stop working. While you will likely see a reduction in the amount of taxes you owe after the age of 65, you still need to plan ahead if you want to minimize your tax bill from the IRS. Social Security Benefits Depending upon your total income and marital status, a portion of your Social Security benefits may be taxable. For a rough estimate of your potential tax liability, add half of your Social Security benefits to your projected income from all other sources. This figure is your adjusted gross income (AGI), plus any tax-free interest income from municipal bonds or foreign-earned income. Up to half of Social Security benefits are taxable if this sum, which is called your provisional income, exceeds $25,000 for singles or $32,000 for married couples filing jointly. However, up to 85% of Social Security benefits are taxable if your provisional income is above $34,000 for single filers or $44,000 for married couples filing jointly. Use the Social Security Benefits Worksheet in the instructions for IRS Form 1040 to calculate the exact amount of taxes owed. Rather than writing a large check once a year, you can arrange to have taxes withheld from your Social Security benefits checks by completing Form W-4V and filing it with the Social Security Administration. Other Income Sources In addition to collecting Social Security benefits, most retirees receive their income from a variety of sources, including distributions from 401(k) accounts and individual retirement accounts (IRAs); payouts from company pensions and annuities; and earnings from investments. Contributions and earnings growth are tax deferred on 401(k)s and traditional IRAs; however, distributions from these accounts are fully taxable, but have no penalties if withdrawals are made after age 59½. If you have savings in 401(k) accounts or traditional IRAs, you must begin making withdrawals from these accounts—and paying taxes on the distributions—by April 1 of the year following the year in which you reach age 72. If you are at least 59½ years old and have owned a Roth IRA or Roth 401(k) for at least five years, withdrawals are completely tax free. There are no minimum distribution requirements for Roth accounts. Strategies to Minimize Taxes Most retirees with nest eggs or pension income of any size will pay at least some taxes on their retirement income, but there are strategies to reduce the amount owed. While it usually makes sense to delay taking taxable distributions from retirement accounts until the funds are needed, or until distributions are required, you may want to withdraw more funds in tax years when claiming a large number of deductions temporarily lowers your tax rate. You may, for example, choose to take advantage of itemized deductions, such as the breaks for medical expenses or charitable gifts, in certain years, while taking the standard deduction in other years. A desire to leave a portion of your assets to your family may also influence how you handle withdrawals from tax-deferred accounts. Keep in mind that, if you leave behind funds in a traditional IRA, the rules for inheritance can be complex. To avoid these issues and make it easier to pass on your estate to family members, consider converting traditional IRAs to Roth IRAs. While you will have to pay taxes on the funds converted, moving to a Roth IRA eliminates future tax liabilities, regardless of whether you use the funds in retirement or pass the money on to your heirs. Alternatively, you may wish to consider cashing in your traditional IRAs and using the funds to purchase tax-free bonds or a life insurance policy that will provide your heirs with a tax-free inheritance. If you are planning to retire soon, consider the tax implications of your income to avoid an unexpected bill from the IRS. For more information, consult your tax professional. Important Disclosures The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security or insurance product. To determine which investment(s) or product(s) may be appropriate for you, consult your financial professional prior to investing or purchasing. Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax. The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change. Traditional IRA account owners should consider the tax ramifications, age and income restrictions in regards to executing a conversion from a Traditional IRA to a Roth IRA. The converted amount is generally subject to income taxation. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Please keep in mind that insurance companies alone determine insurability and some people may be deemed uninsurable because of health reasons, occupation, and lifestyle choices. Guarantees are based on the claims paying ability of the issuing company. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by Liberty Publishing, Inc. LPL Tracking #1-05338165

If you struggle to find a gift for the person who has everything—or want to do your holiday shopping without having to leave the house—consider giving stock as a gift. Doing so is easier than you think, and it may offer a few benefits for you as well. Here is some information on giving stock as gifts and the benefits of doing so.

What Are the Benefits of Gifting Stock?

When it comes to giving stock as gifts, there is one key benefit for both the giver and the recipient.

1.     Stepped-Up Cost Basis

If you held a stock until it increased in value, selling it could mean paying capital gains taxes. But giving the stock to someone else means transferring these gains to the recipient, allowing them to take possession of the stock at its appreciated price.¹ For example, if you purchased 100 shares of a stock and each share is now trading for more than the purchase price, cashing the stock might mean paying capital gains taxes on the amount the investment increased. If you give this stock to someone else, this person begins with a stepped-up-per-share cost basis. If they later sell the stock once it goes up more, they may only owe taxes on the profits-per-share difference.

2.     Transfer of Wealth

Giving stock as gifts may also be a good way to begin passing down wealth to the next generation while minimizing your tax obligation. Cashing out stock and passing along the cash may mean paying capital gains taxes. The proceeds may also be subject to income taxes. This tax may depend on the type of account holding the stock and how long the investment was in the account. Transferring stock to your children, grandchildren, or other loved ones may help them learn about investing in the stock market while reducing the assets you may eventually want to pass down through the inheritance process.

How To Get Started Gifting Stock

There are a few different ways to give stock as gifts, but the simplest ones involve setting up a brokerage account. If you plan to give stock as gifts to your children, a custodial brokerage account allows you to transfer shares and buy and sell stock on your child's behalf. Your child may take control of the account once they are a certain age, usually 18 or 21. If you want to give stock to an adult with no strings attached, you may transfer them to that person's existing brokerage account—or open and fund a brokerage account for them yourself. Talk to your financial professional for more information on giving stock as gifts this holiday season.   Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. Stock investing includes risks, including fluctuating prices and loss of principal. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05337702.  

Footnote

¹ How to Give Stock as a Gift (And Why Tax Pros Like the Idea), Nerdwallet, https://www.nerdwallet.com/article/investing/gifting-stock#

Whether you're hoping to retire soon or are just beginning to explore the idea of stepping back from your job, you're probably wondering how to make it happen. Will you have enough money? How will you spend your time? What will you do for health insurance? Here, you’ll find a useful countdown of the five biggest steps to developing a solid retirement plan. 5. Assess Your Retirement Goals What does retirement look like for you? Do you plan to or want to continue working part-time? Will you travel? Do you want to sell your home and hit the road in an RV? At what age will you claim Social Security? When will you qualify for Medicare? Everyone's retirement goals are different, which means your financial plan for retirement will also be different. 4. Decide How to Draw Down Savings Depending on whether your assets are held in a pre-tax account, a post-tax account, or a taxable account, your savings drawdown strategy can vary widely. Your age can also dictate when, how, and how much you withdraw from your retirement accounts. For example, if you plan to retire before age 59.5, you may want to first begin withdrawing funds from a taxable account to provide flexibility until you're able to take penalty-free withdrawals from a 401(k) or a traditional IRA. 3. Enlist a Financial Professional If you don't yet have a dedicated financial professional, now may be the time to assess your retirement readiness and work to optimize your income and assets as you enter retirement. You don't want to find yourself in a position where your retirement needs exceed your income or assets and you're forced to scale down—or even go back to work—after you've already been enjoying retirement for a few years. 2. Survey Potential Large Expenses Beginning your retirement with multiple large, unexpected expenses can send even the most carefully planned budgets off track. Before you retire, consider some of the biggest expenses that are likely to come your way. ● Will your home need new windows or a new roof soon? ● Are your major appliances—washer and dryer, dishwasher, refrigerator, HVAC—getting older? ● How much longer do you expect your vehicle to last? ● Is your health plan switching to a high-deductible one? By planning for large expenses before you retire, you can work to ensure these costs won't catch you by surprise. 1. Begin Planning Your Estate Whenever you're making a big financial shift or embarking on a new phase of your life, it's important to revisit and assess your estate plan. If you pass away without a valid will or other estate plan, your heirs could find themselves embroiled in a messy, expensive court battle to reclaim and divide your assets. In some cases, you may only need a will to dispose of your assets in the way you'd like. Other situations may call for an irrevocable trust or some other multifaceted approach to managing your estate. Talking to an attorney and your financial professional can give you a better idea of the options available to you and where each different path may lead. Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) and options may be appropriate for you, consult your financial professional prior to investing or withdrawing. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. This article was prepared by WriterAccess. LPL Tracking # 1-05337697.

Through all the challenges, newfound opportunities, and every high and low we’ve experienced during the last couple of years, it’s no surprise why we might be striving for more balance. Whether it’s about the markets and global economy or what’s happening in our local communities, the news we’re hearing on a daily basis has the potential to disrupt the balance of our lives. But with resilience, perspective, and the support of close connections, we can navigate through it all and regain our sense of equilibrium. Even after another dizzying year, as 2022 proved to be. LPL Research's Outlook 2023: Finding Balance is our guide to how the readjustments in the economy and markets may impact you in the coming year. The disruptions may not be fully resolved and there may be more challenges to come, but progress toward finding balance is well underway. And when those disruptions hit the market, it can be hard to find our footing and stay the course. Those are the times when sound financial advice is more valuable than ever, as it helps us find our center, remember our plan, and stay focused on our goals.

View the digital version: https://view.ceros.com/lpl/outlook2023/p/1

    This material is for general information only and is not intended to provide specific advice or recommendations for any individual. The economic forecasts may not develop as predicted. Please read the full OUTLOOK 2023: Finding Balance publication for additional description and disclosure. This research material has been prepared by LPL Financial LLC. Tracking # 1-05345338 (Exp. 12/23)

Just as every snowflake is unique, so is every person's retirement plan. Though there are some general strategies that can be helpful—contribute at least 10% of your salary; have at least one year's salary saved for retirement by age 30; split contributions between pre-tax and post-tax accounts—they don't apply equally to everyone. For many, it's important to periodically seek advice from a financial professional to work toward being on track. With this in mind, here we discuss a few broad rules that can help you forge your own path toward retirement security.

Consider Retirement Expenses

If you've ever used an online calculator to try to assess your retirement readiness, you may wonder how these calculators can determine how much monthly or annual income you'll need. Most of these calculators operate on a "replacement-of-income" basis—assuming you'll need a certain percentage of your current income (usually 80%). But depending on your current income, current spending, and long-term plans, you may need substantially more (or less) income than these calculators suggest.

Expenses Eliminated

Leaving the workforce can mean leaving many of the following expenses behind (or significantly reducing them):

• Dry cleaning
• Commuting costs
• Professional or union dues
• Business clothing or uniforms
• A second vehicle
• Office space

You may also be able to downsize your home or move to a lower cost of living area in retirement, further padding your retirement accounts.

Expenses Gained

Leaving the workforce can also add expenses that were previously covered by your employer. The biggest of these is health insurance. If you don't yet qualify for Medicare when you retire, you'll either take on your employer-paid medical premiums under COBRA (for up to 18 months) or purchase private health insurance on your state's marketplace.¹ Both these options can often add some costs when compared to employer-subsidized health insurance. You may also spend more money on travel, especially in the first few years of retirement. However, if funds are tight, travel and other leisure expenses are often the simplest to cut.

Assess Retirement Readiness

Once you've taken account of your likely expenses in retirement, you'll be better able to determine whether the replacement-of-income calculators are accurate. For example, if you currently save 30% of your income and are planning to downsize to a cheaper part of the country during retirement, it's unlikely that you'll require 100% of your current income after you retire. On the other hand, if you're living paycheck-to-paycheck and your retirement expenses aren't projected to decrease, it may be safer to plan for a retirement budget that relies on 80 to 100% of your current income. It's also important to think about taxes. What state do you plan to live in during retirement? How does this state tax income? Is there a high sales tax? How are your investments allocated among post-tax and pre-tax accounts? There are a handful of states that have no state income tax, including Florida—these states are popular among retirees, who can take withdrawals from a 401(k) or IRA and pay only federal income tax on them.² On the other hand, those whose retirement savings are already in post-tax accounts (like a Roth IRA) won't realize any additional benefit by living in a low-tax state. While the tax treatment of retirement income doesn't need to be the only consideration in deciding where to settle, for some, it can be a major factor. Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) options may be appropriate for you, consult your financial professional prior to investing or withdrawing. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal.  Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax. The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05337702.

Footnotes

¹  FAQs on COBRA Continuation Health Coverage for Workers,” U.S. Department of Labor, https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/faqs/cobra-continuation-health-coverage-consumer.pdf ² Florida Tax Guide, State of Florida, https://www.stateofflorida.com/taxes/