Fiduciary Tips from RWM Financial Group

, , , ,

In the world of financial advice, discovering reliable guidance can seem as challenging as finding a needle in a haystack. Amidst a myriad of conflicting opinions and concealed motivations, individuals often feel overwhelmed and uncertain. However, there’s a beacon of integrity in this chaos: fiduciary responsibility.

At RWM Financial Group, we hold ourselves to the highest standard of fiduciary duty, prioritizing the interests of our clients above all else. We believe that financial success is built on a foundation of trust, transparency, and expert guidance. As part of our commitment to empowering individuals with the knowledge they need to make informed decisions, we’re excited to share some valuable fiduciary tips to help you navigate the complexities of personal finance.

Tip 1: Choose Your Advisor Wisely

When it comes to selecting a financial advisor, not all are created equal. It’s crucial to choose an advisor who is held to a fiduciary standard, meaning they are legally obligated to always act in your best interests. This ensures that their advice is unbiased and free from conflicts of interest. Before entrusting someone with your financial future, be sure to ask if they are a fiduciary and inquire about their qualifications, experience, and approach to financial planning.

Tip 2: Understand Fees and Compensation Structures

Transparent fee structures are a hallmark of fiduciary advisors. Before engaging the services of a financial advisor, make sure you clearly understand how they are compensated. Fiduciaries typically charge fees based on a percentage of assets under management or a flat fee for financial planning services. Beware of advisors who earn commissions or receive kickbacks for selling specific products, as these incentives may influence their recommendations.

Tip 3: Establish Clear Goals and Objectives

Successful financial planning begins with a clear understanding of your goals and objectives. Whether you’re saving for retirement, planning for your children’s education, or building wealth for the future, articulating your priorities is essential. A fiduciary advisor can help you define your goals, develop a customized financial plan, and provide ongoing guidance to keep you on track.

Tip 4: Diversify Your Investments

Diversification is a cornerstone of sound investment strategy. By spreading your investments across a variety of asset classes, sectors, and geographic regions, you can help mitigate risk and improve your chances of achieving long-term returns. A fiduciary advisor can help you construct a diversified portfolio tailored to your risk tolerance, time horizon, and financial goals.

Tip 5: Stay Informed and Engaged

Financial planning is not a one-and-done activity but an ongoing process requiring regular review and adjustment. Stay informed about changes in the market, tax laws, and economic trends that may impact your financial situation. Schedule regular check-ins with your fiduciary advisor to review your progress, reassess your goals, and make any necessary course corrections.

Conclusion

Navigating the complexities of personal finance can be daunting, but with the guidance of a valued fiduciary advisor, it’s entirely achievable. At RWM Financial Group, we’re dedicated to helping our clients achieve their financial goals with integrity, transparency, and expertise. By following these fiduciary tips and partnering with a fiduciary advisor, you can take control of your financial future and unlock new opportunities for success. Contact us today to learn more about how we can help you on your journey to economic well-being.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Charting Your Financial Journey with RWM Financial Group as Your SmartVestor Pro Partner

, ,

Embarking on a financial journey can often feel like setting sail on vast, uncharted waters. With so many decisions to make and potential storms to weather, having a seasoned navigator by your side can make all the difference. This is where the concept of a SmartVestor Pro comes into the picture, and RWM Financial Group has stepped up as a valued partner in capacity. Let’s delve into what this partnership means for you and how RWM Financial Group can be the compass you need.

Who is a SmartVestor Pro?

SmartVestor Pros are confidants and strategists who listen to what matters to you. They can help you understand investing options like mutual funds, IRAs, 401(k), and 529 College savings accounts. They believe are in alignment with Dave Ramsey’s core financial principles. These include the belief that eliminating debt and investing with a long-term perspective is the surest path to financial independence. RWM Financial Group, as a SmartVestor Pro, embodies this philosophy, offering guidance rooted in these foundational beliefs.

They advocate for Dave Ramsey’s teachings but also practice them in their financial advising. This ensures that when you partner with a SmartVestor Pro like RWM Financial Group, you’re getting advice from someone who genuinely walks the walk, ready to guide you toward financial freedom.

Why Choose RWM Financial Group as Your SmartVestor Pro?

In the vast sea of financial advisors, distinguishing those who genuinely have your best interests at heart can be daunting. RWM Financial Group stands out in this crowd, committed to being a partner you can rely on, value, and feel comfortable with as you share your financial goals and concerns.

Save You Time

Picture this: no more late-night scrolls through financial news or worrying about market swings. With RWM as your SmartVestor Pro, you can kick back and relax, knowing that we’re diligently keeping an eye on things for you. Your time is valuable, and we’re here to help you reclaim it.

Teach You

Investing can feel overwhelming, but you don’t have to go it alone. Think of us as your friendly guides through the maze of financial jargon and market trends. We’ll break things down in a way that’s easy to understand and empower you to make informed decisions about your money.

Think Big Picture

Life is full of ups and downs, and the market is no different. When things get rocky, we’ll be your steady hand, helping you see the forest for the trees. Together, we’ll focus on your long-term goals and navigate through market changes with grace and perspective.

Embarking on Your Financial Journey with RWM Financial Group

Choosing RWM Financial Group as your SmartVestor Pro means embarking on a financial journey with a partner equipped to navigate the complexities of financial planning. They understand the importance of each decision you make and are committed to guiding you through each step, ensuring a journey that’s not only successful but also true to your values and goals.

Whether you’re taking your first steps towards financial independence or looking to navigate more complex financial challenges, RWM Financial Group, as a SmartVestor Pro, is ready to be your ally. Their expertise, aligned with the trusted principles of Dave Ramsey’s teachings, ensures you have a knowledgeable and dedicated guide by your side.

As you set sail on your financial adventure, consider the difference a dedicated partner like RWM Financial Group can make. With them, you’re not just charting a course to financial success; you’re laying the foundation for a future where your financial dreams can become reality. Contact RWM Financial Group

The SmartVestor program is a directory of investment professionals.  Neither Dave Ramsey nor SmartVestor are affiliates of RWM Financial Group or LPL Financial.

Writing Your Company’s Retirement Plan Goals

, , , ,

Guess what? Your company’s retirement plan is like a superhero cape for your organization’s goals. But hold up, before you dive into the superhero action, let’s figure out what you really want to achieve.

So, you know how employers sometimes feel a bit lost when setting up those retirement plan goals? Well, no worries! We’re here to change that and lead your team on a path towards a retirement that screams confidence.

Ready for some questions?

What’s the grand goal of your company’s retirement plan?

Your company’s retirement plan isn’t just a financial tool; it’s the cornerstone of your employees’ future. Are you aiming for financial security, early retirement options, or perhaps a plan that fosters a strong company culture? Clarifying these goals ensures your plan aligns with your company’s vision and the well-being of your team.

How are you handling those fiduciary responsibilities?

Fiduciary responsibilities aren’t just a checkbox; they’re a commitment to your employees’ trust. Beyond legal obligations, it’s about ensuring your investment decisions, communication strategies, and plan management prioritize the best interests of your workforce. Regular assessments guarantee you’re not just meeting requirements but exceeding them.

Are your plan fees playing fair?

Uncover the true cost of your retirement plan. Beyond the surface, scrutinize fees, and explore whether there are more cost-effective options. This not only saves money for both the company and employees but also enhances the overall value of your retirement offering.

And hey, what about the latest legislation – how’s that affecting your retirement game?

The retirement landscape is ever-evolving, influenced by legislative changes. Stay ahead by understanding how new laws impact your plan. This knowledge not only ensures compliance but opens opportunities to optimize your strategy and keep your plan in sync with the latest regulations.

Any room for improvements in the plan design?

Don’t settle for the status quo. Explore innovative plan designs that could potentially enhance outcomes for your employees. From investment options to contribution structures, a proactive approach to design ensures your plan evolves with the needs of your workforce, fostering financial wellness.

Conclusion: Don’t let your company’s retirement plan wander.

Now armed with a more profound understanding of your goals, fiduciary responsibilities, fees, legislative impacts, and potential design enhancements, it’s time to take charge. Set a clear direction, map out a strategy, and ensure your company’s retirement plan isn’t just a benefit but a dynamic force propelling your team toward a secure and confident future.

And guess what? We’ve got your back every step of the way. Reach out to us today, and let’s give your retirement plan a well-deserved checkup. Your company’s retirement plan isn’t just a plan-it’s a journey, and RWM Financial Group is here to make it a remarkable one. Contact RWM Financial Group

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Unlocking Financial Opportunities: The Art of 529-to-Roth Rollovers Explained by RWM Financial Group

, ,

Hey there, savvy savers! Ready to dive into the nitty-gritty of 529-to-Roth IRA rollovers? The SECURE 2.0 Act has opened up a whole new avenue to shuffle around those unused 529 funds for the benefit of your loved ones’ retirement. Let’s break it down, RWM-style.

So, picture this: you’ve been stashing away in a 529 account, dreaming of a bright college future for your kiddos. Fast forward to the SECURE 2.0 Act, and now you’re thinking, “What if I could turn these leftovers into a retirement nest egg?” Well, guess what? You can!

Starting this year, 2024, the new provision allows you to roll over unused 529 assets (up to $35,000) into the beneficiary’s Roth IRA without facing the dreaded 10% penalty or stirring up any taxable income drama. Great news, right? Especially for those of us wondering what to do with excess 529 funds just hanging around like a third wheel at a party.

But hold up! Before you start envisioning your money making its way to Roth paradise, Brahm Rossiter, our Chief Investment Officer at RWM Financial Group, puts it into perspective. “Transforming unused 529 funds into Roth savings is not just a financial move; it’s a strategic journey towards securing a brighter future. At RWM Financial Group, we believe in empowering individuals to make informed choices that pave the way for financial freedom and generational wealth.

Now, let’s talk limits. You can’t just waltz into 529-town, grab $35,000, and sashay into a Roth party. There are rules, dear friend:

Holding Periods

Your 529 needs to have clocked at least 15 years before the rollover dance begins. No shortcuts allowed! Contributions from the last five years before distributions? Sorry, they’re not invited to this tax-free rollover fiesta.

Annual Limits

Your rollover can’t outshine the annual Roth contribution limit, which is currently $6,500, in 2023. So, if you’re eyeing that $ 35,000 lifetime limit, you’ll be doing it over six years – unless the Roth contribution limit does a little cha-cha upwards in the future.

Ownership

The beneficiary of the 529 must be the proud owner of the Roth IRA and must have earned income equal to the rollover amount. Fair’s fair!

Now, here’s where it gets a bit tricky. These are the rules according to the legislation. The IRS might throw in a plot twist during implementation, and some details are still up in the air. For example, can you switch 529 beneficiaries before a rollover, or does that trigger a brand new 15-year holding period? And who’s footing the bill if things go south? Uncertainty alert!

But fear not! If you’re eyeing this new provision with a hopeful gleam, here’s a checklist to chat about with your planning professional:

Hold Your Horses

If you’ve got a 529 plan, no need to make a move just yet. 2024 is the starting gun, and we’re still waiting for the final rules. Patience is key.

Kiddo’s 529 Game Plan

If you’re thinking of making yourself the beneficiary ninja to sidestep Roth IRA contribution rules, hold on. Let’s wait for the lowdown on the lifetime contribution amount and that 15-year holding period.

Roth IRA for the Win: 9 Game Plan

Regardless of the IRS dance, consider opening a Roth IRA for the beneficiary. Get those retirement savings going when the tax rates are friendly and efficient!

Backup Plans

Got an overfunded 529? Fear not! Switch beneficiaries, use it for educational purposes, tackle student loans, or tap into it for a tax-free scholarship – plenty of options on the table.

In a nutshell, this new 529-to-Roth rollover is like your financial safety net, not the main event. So, keep it in your back pocket, chat with your planning pro, and let’s navigate this new terrain together! Contact RWM Financial Group

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.

Navigating the 401(k) Adventure: A Friendly Guide to Fiduciary Best Practices with RWM Financial Group

, ,

Hey there, savvy decision-makers at RWM Financial Group! Let’s chat about the nitty-gritty of your 401(k) game plan and why keeping an eye on those investments is a big deal. We get it, steering through the fiduciary responsibility maze can be a bit overwhelming, but fear not – we’re here to guide you with a friendly chat and a sprinkle of expertise.

So, you’ve got this investment committee, right? They’ve got their hands full selecting and keeping tabs on the investment options for the retirement plan. No pressure, but it’s a crucial task. But guess what? You’re not alone! There’s a buffet of resources out there to help you make those informed decisions without breaking a sweat.

Why bother, you ask? Well, staying proactive and clued up on these matters can be your secret weapon against potential legal headaches. Nobody wants to be tangled up in lawsuits about excessive fees or ERISA violations. Trust us, it’s not a fun ride.

Your Fiduciary Responsibilities

Let’s dive into the fiduciary responsibilities for a moment. As a fiduciary, you, the plan sponsor/employer, have a duty to act solely in the best interest of the participants. The Department of Labor says, “Hey, be prudent, diversify those investments, and keep the risk of big losses in check.”

Now, we know it’s a complex dance, and that’s why you might want some dance partners. Cue the 3(21) and 3(38) advisors. The 3(21) buddy is like your co-pilot – offering counsel and guidance without taking the wheel. On the flip side, the 3(38) advisor takes full control of the investment decisions, letting you sit back and relax.

Investment Policy Statement

Let’s not forget the Investment Policy Statement (IPS) – think of it as your GPS for the plan’s investments. It’s your roadmap, ensuring the plan’s goals align with its investment approach. Plus, it’s the committee’s handy tool for evaluating the retirement plan’s performance.

Evaluate, Benchmark, and Assess

Now, when it comes to evaluating, benchmarking, and assessing – it’s like giving your plan a health check. Are those goals outlined in the IPS being met? Is the fee structure reasonable? Time to compare your plan to the cool kids in the market to see how it measures up.

Oh, and setting up a 401(k) plan? We get it, the U.S. tax system can feel like a rollercoaster. But fear not! With the right help, even the smallest business can confidently rock a 401(k) plan. Automation is the name of the game, and a financial professional specializing in these plans can be your sidekick.

What is Fiduciary Liability Insurance?

Let’s talk about fiduciary liability insurance – your plan’s superhero cape. It’s not required, but it’s a smart move. This insurance provides legal protection if someone claims a fiduciary duty breach or mismanagement of the retirement plan. No capes against fraud, though – that’s where the ERISA fidelity bond steps in.

Fiduciary Oversight, Financial Integrity

So, my friends at RWM Financial Group, overseeing a retirement plan is a big deal, but with the right squad of fiduciary experts, including those 3(21) or 3(38) advisors, you’ll be cruising smoothly. A well-managed plan and investment strategy? That’s your ticket to an optimized plan and happy employees reaching their retirement goals.

Contact RWM Need a hand in the 401(k) adventure? Drop us a line! We’re here to answer all your burning questions and help you navigate those fiduciary responsibilities like seasoned pros. Cheers to financial well-being!

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Why Sponsor a 401(k) Plan for Small Business?

, ,

5 Good Reasons To Set Up A 401(k) Plan Even if Your Company is Small

The 401(k) plan is a favorite retirement savings vehicle for Americans. It is estimated that 52% of working Americans work for a company that offers a 401(k) or similar plan. But, while more than 67% of very large companies offer  a plan, just 26% of America’s small business owners offer a 401(k) plan and 74% do not offer any form of retirement benefits. Owners of small businesses may incorrectly assume that 401(k) plans just won’t work for them.  Here’s the reality.1

#1: 401(k) plans make it easier to compete for and keep talent.

Seventy-seven percent of employers believe that offering a 401(k) or similar plan is important for attracting and retaining employees. However, some may be underestimating their importance — fully 81% of workers agree that retirement benefits offered by a prospective employer will be a major factor in their final decision-making when job hunting.

#2: A 401(k) can help owners save for their own retirement

Business owners sometimes hope to fund their own retirement through business profits or the future sale of their business. They may sacrifice personal retirement savings in favor of plowing money back into the business. When the company provides a 401(k) plan for employees, owners may be more likely to contribute on their own behalf, too. The savings in the plan can help the business owner’s ability to retire, even if the company itself does not survive.2

#3: 401(k) plans save the company on taxes. 

A key provision of SECURE Act 2.0, passed in December 2022, allows employers with 1-50 employees to claim a credit of up to 100% of start-up costs for the first three years after adopting a new plan.3 This credit is capped at $5,000 per employer annually (total of $15,000  for the three years). A 50% credit from the SECURE Act of 2019 remains for those businesses with 51-100 employees. There is also an additional tax credit for five years of up to $1,000 per employee equal to the applicable % of eligible employer contributions. This tax credit does not apply to defined benefit plans and there is an exception for employees with wages in excess of $100,000. You may also enjoy a reduction in payroll taxes if employees are taking advantage of the plan — which is a great reason to educate them about its benefits.

#4: Plans are easy to set up and operate…with the right help

401(k) plans are available by virtue of an extremely complex U.S. tax system. It makes sense to feel a little intimidated, especially when you have a business to run. Today, there is a lot of help available to make it possible for even the smallest business to confidently establish and operate a 401(k) plan. The administration can be fully automated, and you can select a financial professional who specializes in these plans to help make sure it benefits employees and the company, within the bounds of all applicable laws.

#5: 401(k) plans help employees retire on time.

Their workplace 401(k) plan may provide an opportunity for employees to connect with a financial professional; for many, this is their only such contact. Along with the plan, contact with a financial professional may help employees gain confidence in their ability to retire. And that is important for at least two reasons. 1) Employees who know they will have enough money to retire are more likely to leave the workforce on time. Thus, they make room for the next generation of employees rather than remaining on the job solely for the paycheck. And 2) employees who are worried about finances are often less productive, less healthy, and more expensive for your other benefits.4

  1. Source: Plansponsor.com ↩︎
  2. https://transamericacenter.org/docs/default-source/retirement-survey-of-employers/tcrs2019_srr_employer_survey_retirment_security_challenge.pdf ↩︎
  3. https://www.irs.gov/retirement-plans-plan-participant-employee/retirement-savings-contributions-savers-credit ↩︎
  4. Source: 401kSpecialist Magazine, 2022. ↩︎

Contact RWM If you haven’t yet established a 401(k) plan, take some time to learn more about the ways it may help you grow your business and work towards your future – and those of your employees. RWM Financial Group would be happy to share more insights.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

RP-0393-0323  Tracking #1-05365579 (Exp. 03/25)

Big Birthdays After 50 – And Why They Matter

, ,

So, you know how kids hit that age where they proudly declare they’re “eleven and a half” or some such? Well, guess what? Once you’re past the big 5-0, those half-birthday vibes start making a comeback. And here’s the twist – these birthdays and “half-birthdays” are not just about adding candles to your cake. Nope, they can seriously shake things up when it comes to your retirement game plan.

Age 50

Alright, let’s kick things off at the big 5-0. If you’re part of certain retirement plans, this is your cue to start making those annual catch-up contributions. Picture this: if you’re rocking a 401(k), 403(b), or 457 plan, you can throw in an extra $7,500 per year in 2024. Got a Simple IRA or Simple 401(k)? You’re looking at a cool $3,500 catch-up contribution. And don’t forget the traditional or Roth IRAs – you can stash away an extra grand annually. Sweet, right?

Age 59½

Now, we’re talking about the age where you can start dipping into your retirement plans without Uncle Sam slapping you with a 10% penalty. Say hello to withdrawals from your IRAs and employer-sponsored plans like the 401(k) and 403(b). Just a heads-up – traditional IRAs, 401(k)s, and the gang are taxed as ordinary income. But hey, no penalties? That’s a win.

Age 62 

So, 62 is the magic number to start cashing in on those Social Security retirement benefits. But hold up – if you’re still grinding away at work, your benefits take a hit. The deal is, they deduct a buck for every two you earn over the annual limit, which is $22,320 in 2024. It’s like Social Security’s way of saying, “We got you, but not all the way.”

Age 65

Hit 65, and guess what’s on the table? Medicare. The folks at Social Security suggest you get on it three months before the big day. Oh, and if you’re already soaking up those Social Security benefits, you’re in for automatic enrollment in Medicare Part A and Part B. No extra paperwork – sounds good to us!

Age 65 to 67

Now, here’s the scoop between 65 and 67. This is when you can start cashing in on the full 100% of your Social Security benefits. But here’s the kicker: the exact age depends on when you blew out your birthday candles. Born in ’55? Full benefits at 66 years and 2 months. Born in ’60 or later? Hold on tight till you hit 67.

Age 73

Fast forward to 73, and it’s time to start taking those required minimum distributions from your traditional IRA and other plans. And get this – you can still contribute to that traditional IRA past 70½, as long as you’re bringing in the bacon.

So, why does all this matter? Well, understanding these milestone birthdays is like having a secret map to navigate your retirement. It’s not just about celebrating another trip around the sun; it’s about making sure you’re on top of things and dodging those pesky penalties. Cheers to knowing when to blow out the candles and when to cash in on the perks! 🎉

As you embark on this next chapter, let RWM Financial Group be your co-pilot. When it comes to preserving your financial future, having a knowledgeable guide makes all the difference.

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 material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own, separate from this educational material.

2024 Compliance Calendar

, , , ,

Stay ahead of deadlines with help from our annual Compliance Calendar. If you have any questions about deadlines or the information requested, please get in touch with us to review today!

Download the 2024 Compliance Calendar

RWM Financial Group is committed to providing solutions and support for yours and your employees’ retirement. Here’s a handy checklist to keep your retirement plan running smoothly:

  • Review plan documents: Ensure all information is up to date and compliant with current regulations. Don’t let any outdated policies slip through the cracks!

  • Communicate with participants: Engage your employees by sharing important updates, educational resources, and reminders about upcoming deadlines. Let’s keep them informed and motivated!

  • Evaluate investment options: Take a close look at your plan’s investment lineup. Are there any adjustments needed to align with participants’ goals? Let’s ensure a diverse and appealing selection.

  • Assess plan fees: Scrutinize the fees associated with your plan. Can any be renegotiated or reduced? It’s time to optimize your plan’s cost-effectiveness!

  • Conduct plan audits: Regular audits are crucial to maintaining compliance and identifying any potential issues. Stay ahead of the game and ensure your plan is in tip-top shape.

  • Enhance financial education: Empower your employees with financial literacy tools and resources. Help them make informed decisions for a secure retirement future.

RWM Financial Group takes pride in our roles as your Plan Advisors; we are dedicated to you, your plan, and your employees. We are here to support you every step of the way.

Securities and advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC.

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

Getting Ready for the Upcoming Tax Season

,

This information is not intended to be a substitute for specific individualized tax advice. We recommend discussing your specific tax situations with a qualified tax advisor.

Tax season is approaching and being prepared is the best way to make this tax season your easiest yet. In this document you will find important information and tools to help you get ready. As always, meeting with your financial professional early and often will ensure that all your questions are answered, so reach out to them today. 

Why are there different mailings for 1099-Consolidated Tax Statements?

During the 2023/2024 tax season, LPL will mail 1099 consolidated tax statements in multiple waves (similar to other major financial firms) to meet all IRS deadlines, reduce errors, and cut down on the need to mail corrected forms. 

See important tax season mailing dates below for a full list of mailing dates. Your original 1099 consolidated tax statement will be mailed shortly after we receive final income reclassification announcements from all securities held in your account. Timing of receiving final income reclassification data may result in your tax statement not arriving on the anticipated February date. In these cases, your 1099 tax statement will be mailed between February 16 and March 15, 2024.  

If your 1099 consolidated tax statement is not available on or before February 16, 2024, you’ll have access to a Preliminary 1099-Consolidated Tax Statement. This is an advanced draft only. Data may be incomplete and is subject to change. The preliminary 1099 should not be considered final and should not be used for the purpose of filing a tax return with the IRS or with any state or other regulatory agency. The preliminary form will be available electronically and won’t be mailed. You can access a preliminary 1099-consolidated tax forms statement in Account View or by reaching out to your financial professional. 

Income reclassification: What is it and what do I need to know? 

Income reclassification (sometimes called income reallocation) is an annual process where security issuers change the tax characterization of distributions that were paid during the tax year. Often, the result of income reclassification is a more favorable tax treatment. The income reclassification process takes place after the end of the tax year, during the first quarter, when security issuers announce their income reclassification for the previous tax year. The income reclassification process affects income distributions you may have received during the previous tax year. The IRS requires final income reclassification to be reported to you on Form 1099.  

Please note: Reclassification is an industry-wide activity. All financial industry firms receive reclassified data from issuers. 

Should I file an extension?  

It is always a good idea for you to maintain an open line of communication with your financial professional and your tax advisor throughout the year to ensure the best tax strategy and outcomes for you. This dialogue will help you decide if filing an extension is the best course of action. There are many reasons why filing an extension might make sense for you. For example, the volume of data or complexity of certain transactions inside or outside your account may require additional time to address. In addition, if you are expecting to receive your 1099 in the final mailing waves in March, it may be reasonable to consider filing an extension to allow sufficient time for your tax advisor to accurately complete your tax return forms. If you are unsure about your holdings, be sure to discuss them with your financial or tax professional. 

Corrected Forms: What do I need to know if I receive a corrected tax form in the mail? 

After your original 1099 tax statement has been issued, delayed reporting and reclassification from security issuers can sometimes occur, which may result in you receiving corrected 1099 statement. The IRS requires that a corrected form be issued for any adjustments received from the security issuers after your original tax form is produced.   

Security types most likely to reclassify are: 

• Regulated investment companies (mutual funds)

• Unit investment trusts (UITs)

• Real estate investment trusts (REITs)

• Widely held fixed investment trusts (WHFITs)

There is not an IRS cutoff or deadline for providing corrected 1099 forms. If you need to file an amended tax return, it’s recommended that you discuss the situation with your tax advisor prior to refiling so they can determine the best course of action based on your individual circumstances.  

For help answering tax season questions and finding additional saving opportunities, contact your financial professional. 

How to go paperless in Account View 2.0 

There are several benefits to you for going paperless with your important documents. 

• Get faster access to your documents,including tax forms.

• Peace of mind.eDelivery is more secure.

• Get convenient access to important documents from one location, anytime, anywhere.

For directions on how to set your tax forms to be paperless, please see the below steps. It takes less than 5 minutes to get setup. 

1. Login to your account www.myaccountviewonline.com. If you don’t have an Account View profile, you can sign up for one at the link above.

2. Once you are logged into your Account View profile, click on your name in the upper right corner of the screen. Select “Preferences” to navigate to your paperless settings.

3. From there you can choose to either go 100% paperless for all eligible documents or pick and choose which documents you receive by mail delivery.

Authorized User access in Account View 2.0 

You can provide an authorized user access to your Account View profile. This is a view-only access to any user you authorize. Who would you want to give access? Perhaps a significant other to view account information or your accountant, so they can download tax statements.  You control this setting within your user profile preferences.  

Tax preparation software 

If you use TurboTax or H&R Block, you’ll be able to import the information shown on your original or corrected 1099 tax information statement directly into the software. To upload your tax data into the software, you’ll need your full 8-digit LPL 

account and 11-digit Document ID listed on your tax statement. Forms will be available for download once your tax statement is available. We recommend you wait to download your tax statements until you have received all tax statements in the mail.  

Important tax season mailing dates 

Becoming familiar with the mailing schedule is one of the most important ways to stay organized for tax season. During the 2023/2024 tax season, to meet all IRS deadlines, reduce errors, and reduce the need to mail corrected versions, LPL will mail the 1099 Consolidated Tax Statements in multiple phases. Keep this chart handy to see when your final forms for tax year 2023 will be ready. 

For more information on IRS tax filing or extension deadlines, see IRS.gov. 

2023/2024 Tax Season Mailing DatesDownload

Please reach out to us at RWM Financial Group. We look forward to the opportunity to extend our services and to help position your investment portfolio for long-term success.

Member FINRA/SIPC Tracking #507811

 

Outlook 2024: A Turning Point

LPL Research recently unveiled Outlook 2024: A Turning Point, which recaps where markets have been over the last half of 2023 to help position your portfolio through midyear of 2024. It’s with pleasure that we bring you a few of its key highlights today.

In 2024, we believe markets will make a definitive turn to a more recognizable place. Where the last two years had investors focused on inflation, market volatility, and striving for a sense of economic balance, we expect to see some return to the previous status quo, characterized by more familiar and steadier economic and market patterns. We’ve seen indications of this reset—receding inflation, rates stabilizing, more modest stock market performance, and go-forward economic forecasts that have been dwindling.

It doesn’t mean that 2024 won’t have its own surprises or potential challenges. Reflecting on 2023, we certainly experienced our fair share of unexpected events. There were positives, such as the strength of the U.S. economy and the stock market, despite the Federal Reserve (Fed) raising interest rates. On the downside, we faced a regional banking crisis driven by interest rate risk and saw escalating conflict in the Middle East, reminding us that markets are seemingly constantly overcoming obstacles.

So where does that leave us for the first half of 2024? We do expect the economy to soften mildly, which is what the Fed has been looking for over the past two years. The uncertainty surrounding a potential recession may limit stock gains as 2024 begins, but it could also provide a silver lining if the Fed eases rates as a result.

The rate and earnings cycles are likely to have a greater impact on stocks, as investors focus on the anticipated decline in interest rates and return of growth in earnings. With this in mind, we see growth opportunities in bonds, which should offer decent returns with lower risks compared to stocks. Ultimately, we expect both stocks and bonds to perform well and provide ample opportunities.

These are just some of the insights you’ll find in our Outlook 2024: A Turning Point. To get more, including considerations and potential action steps to discuss with your financial professional, visit go.lpl.com/investoroutlook.

The insights provided, combined with my guidance, will help you navigate this turning point and work toward achieving your goals. And at the end of the day, that’s what it’s all about.

READ THE FULL REPORT

Please reach out to us at RWM Financial Group. We look forward to the opportunity to extend our services and to help position your investment portfolio for long-term success.

Member FINRA/SIPC Tracking #513668 (exp. 12/24)

 

Important Information

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All data is provided as of December 11, 2023.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All index data from FactSet.

The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

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.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Past performance does not guarantee future results.

Asset allocation does not ensure a profit or protect against a loss.

For a list of descriptions of the indexes and economic terms referenced, please visit our website at lplresearch.com/definitions.