December 2017 Newsletter to Clients

Enjoy this month’s newsletter that features a holiday open house reminder, important TD Ameritrade year-end deadlines, the First Eagle Fund settlement and 2018 COLA figures for Social Security…

Holiday Open House: Moneywatch Advisors will host a Holiday Open House on Thursday, December 14^th from 4-7 at our office building on Walton Avenue. All are welcome and we hope to see you.

Tax Planning: We want to make you aware of several approaching year-end activities with potential tax implications for 2017 including the dates which action must be taken in order for TD Ameritrade to meet the December 29 deadline. (December 31 falls on a Sunday this year.)

Deadline for Required Minimum Distributions (RMDs): Clients who are 70½ or older or those who have BENEFICIARY IRAs must take an RMD from their IRA and/or their Qualified Retirement Plans for the 2017 tax year. All RMDs must be withdrawn by December 29, 2017, with the exception of RMDs for clients who turned or will turn 70½ during this calendar year; these clients may defer their first distribution until April 1, 2018.

Deadline for Roth IRA Conversions: Clients must submit a Roth Conversion Form in good order by December 21, 2017. Forms received after that date will be processed by TD Ameritrade on a best-efforts basis.

Deadline for Establishing a 2017 QRP: QRP’s for 2017 must be established by December 29, 2017.

Charitable Gift Deadlines:

• December 18, 2017 - Gift requests of mutual funds
• December 21, 2017 - Gift requests of cash via check and/or federal funds wire
• December 21, 2017 - Gift requests between accounts custodied at TD Ameritrade
• December 21, 2017 - Gift requests of equities and fixed-income products to external accounts

In addition, below are some end-of-year ways to reduce your taxable income:

• Have you contributed the maximum amount allowed by the IRS to your qualified retirement plan – such as your 401(k) or 403(b)? The limit for those under age 50 is $18,000 per year, while those 50 and over can contribute up to $24,000 per year. Note to UK employees, you may contribute to a 457(b) plan in addition to your 403(b). So, if you’ve maxed out your 403(b) contributions you can also contribute $18k or $24k to your 457(b). That’s a great UK benefit.
• You may also make a tax-deductible contribution to your IRA or create a new IRA. The limit if, under age 50, is $5,500 and the limit for those 50 and over is $6,500. There are some complicated rules so please call us and we can determine if you qualify.
• This is a great time of year to reduce your taxable income by making a donation to your favorite charity or charities. And, if Congress passes a new tax law these rules may change for next year, so take advantage now.

First Eagle Fund: If you received a check from their settlement fund (www.fefsettlementfund.com) in the mail, please contact the office so we can help you determine if the check needs to be mailed directly to your TD Ameritrade account.

Social Security Recipients:  You can expect a cost of living adjustment (COLA) of 2% (increase) beginning with payments received after 01/01/2018. The standard Medicare Part B premium will be $134/month.

Thank you for your continuing confidence.

Past performance is no guarantee of future results. The opinions expressed are those of Moneywatch Advisors, Inc. and are no guarantee of the future performance of any particular fund. This information is for educational purposes only and is not intended as investment advice. Please consult your financial advisor for more detailed information or for advice regarding your individual situation.