Happy Easter!

Greetings! I trust that this finds you well and doing what you need to do to take care of yourself.

Some of you may not be aware that a little known provision in the economic relief act had to do with RMD’s or required minimum distributions. Under current law at age seventy two you are required to begin to withdraw from your IRA accounts, on a minimal but accelerating schedule and thereby begin to pay taxes on the balance.  The essence of the provision in the act is that you won’t be required to take a distribution this year if you choose not to. The governments reasoning is that you can allow your IRA to recover this year from the effects of market declines. This may prove to be a godsend or unnecessary based on the markets at year end, nonetheless it allows those of you who don’t want to withdraw to forego it this year.

As we are speaking of RMD’s I want to remind you that the IRS allows you to make a direct transfer from you IRA to a qualified charity once you begin RMD’s. It’s called qualified charitable distribution and is a much more tax efficient to donate to charity if you are are experiencing RMD’s. Here again, for this year you may want to forego that in order to make a greater donation next year.

Most of us experienced hurricane Katrina in a major way and have learned that challenges can make us stronger and better people, if we choose to take them on in that way. My take is that challenges like this bring out the best or worse in us. And to be honest I have to be really conscious of this effect on my life. So what’s it going to be with you, for you? Are you looking for ways to support, help and encourage? Are you looking for ways to become better and ultimately happier, because you as David Bowie sang “turn and face the strain”? We all have it in us it’s just a matter of being intentional and going out of your way. This is a great time to build and strengthen relationships as we are all feeling a certain sense of isolation and uncertainty so REACH OUT.

If you have any financial question or feel uncertainty in any way about your finances or this economy, call me and we will get you to a place of understanding and peace. There is great truth in the old adage that in crises there is opportunity.

I don’t want to pass up this opportunity to wish you and your family a happy and meaningful Easter.

Best regards.

Jeff Christian CFP, CRPC

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