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<title>Retirement Myths: BUSTED</title>
<link>https://www.bpas.com/blog/retirement-myths/</link>
<dc:creator><![CDATA[Nicole Ossevoort]]></dc:creator>
<pubDate>Mon, 29 Apr 2024 14:30:59 +0000</pubDate>
<category><![CDATA[Retirement Planning]]></category>
<guid isPermaLink="false">https://www.bpas.com/blog/employee-benefits-copy/</guid>
<description><![CDATA[There are many common beliefs about retirement that aren’t true. Falling for them can have a negative impact on your retirement strategy. Let’s look at five common retirement myths: Myth One: I’m too young to start saving for retirement! It may seem far off to someone in their early 20s, but the truth is, it’s … 
The post <a href="https://www.bpas.com/blog/retirement-myths/">Retirement Myths: BUSTED</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></description>
<content:encoded><![CDATA[There are many common beliefs about retirement that aren’t true. Falling for them can have a negative impact on your retirement strategy. Let’s look at five common retirement myths: 
<h5>Myth One: I’m too young to start saving for retirement! </h5>
It may seem far off to someone in their early 20s, but the truth is, it’s never too early to start saving for retirement. When you start early, you put the concept of compounding interest to work for you. Compounding interest allows you to earn interest on the money you’re saving for retirement and the interest you’re earning. The money you save in your working years could make up most of your retirement account balance when you retire! The longer that money hangs out in your retirement account, the more it grows. If you’re worried about market fluctuations affecting your retirement account balance over time, check out myth number two below.
<blockquote>If you’re new to the workforce (or looking for a new career) check out our blog post on <a href="https://www.bpas.com/blog/employee-benefits/">choosing the best employee benefits package</a>. </blockquote>
<h5>Myth Two: The market is too risky for my money. </h5>
Throughout your career, you’ll witness numerous market cycles. When the market is up, your retirement account may thrive. Conversely, during downturns, you may not like what you see when you check your account balance – and be tempted to stop contributing.
You know that popular saying, “It’s not the destination, it’s the journey?” Well, in this case, that’s not entirely true. When it comes to your retirement journey, what matters is how the market performs over time. History tells us that the market does go up in the long run. Typically, the market has more ups than downs, which helps the long-term investor stay the course. As you get closer to retirement age, you may invest more conservatively to protect your assets. When you’re just starting on your retirement journey, it’s beneficial to endure market downturns and capitalize on long-term growth.
<h5>Myth Three: Social Security will cover my expenses in retirement. </h5>
Unless you are extremely frugal and have no unexpected medical expenses, Social Security is not enough. The current maximum Social Security payout is $4,873. That’s IF you delay Social Security payments until age 70. If you begin taking Social Security at full retirement age, the monthly payout is $3,822. For most Americans, that just isn’t enough – especially if you have big plans for your second act.
It takes years of thoughtful planning to be prepared for retirement. Check out the retirement planning calculators on <a href="https://u.bpas.com/financial-calculators/">BPAS University</a>!
<h5>Myth Three: Medicare will cover all of my medical expenses. </h5>
Medicare provides optional medical insurance to adults aged 65 and older. You do have to sign up for the program and decide which plans work best for you – for example, prescription drugs are not covered under your basic Medicare plan – you’d have to purchase Part D coverage. There are as many misconceptions about Medicare as there are about retirement, but one thing is for sure: Medicare alone may not provide the comprehensive coverage you need.
Additional options, including long-term care insurance to cover long-term services, like a nursing home, are worth considering. However, you may already have a powerful tool in your retirement planning kit: a Health Savings Account, or HSA.
Health Savings Accounts (HSA): HSAs are a valuable tool for managing healthcare costs, especially with high-deductible health plans (HDHPs). Contributions to an <a href="https://u.bpas.com/what-is-an-hsa/">HSA</a> are tax-deductible, and funds can be used tax-free for qualified medical expenses, including copayments and medical supplies. HSA funds roll over year after year, which means long-term savings and growth!
We know that an HSA is a great way to offset qualified medical costs and save for retirement (tax-free!) When used in tandem with Medicare, your HSA becomes even greater. Once you turn 65, HSA funds can be withdrawn at any time, for anything, without penalty. You will only pay ordinary tax on non-medical expenses. It’s almost like having a second source of income in retirement!
While you can no longer contribute to an HSA after turning 65, utilizing HSA funds for medical expenses may provide a sense of security that Medicare alone can’t offer. 
<h5>Myth Four: I don’t need any help planning for retirement. </h5>
Retirement planning is a complex process that requires thoughtful planning over the lifespan of your career. Whether you have big plans for retirement or simply want to kick back and relax, working with a financial advisor is a great option. They can help you create an initial plan and keep you focused along the way.
Another thing to consider is your personal retirement strategy. We like the “<a href="https://u.bpas.com/whats-your-retirement-strategy/">BPAS U method</a>:”
B – Behavior: What does financial stability look like for you? What is your risk tolerance? What’s your investment style? 
P – Purpose: What are you saving for, and what does your retirement look like? At what age do you plan to retire? 
A – Assets: What retirement savings accounts do you have? Will you be taking Social Security benefits? 
S – Strategy: Based on your answers above, what will your retirement strategy look like? What steps do you need to take now to ensure a smooth journey to retirement?
U – Update: What will your retirement plan look like in five years? Ten years? 
There are no right or wrong answers to these questions but taking them into consideration is a great way to evaluate where you’re at in your retirement plan. 
<blockquote><a href="https://u.bpas.com/are-you-on-target-for-your-retirement-goals/">Am I on target to meet my retirement goals?</a> </blockquote>
<h5> Myth Five: I can’t afford to save for retirement. </h5>
It may seem that way sometimes, but the truth is, you can’t afford not to. In your 20s or 30s, it’s easy to become overwhelmed with the day-to-day expenses: daycare, groceries, your child’s extracurricular activities – and allow retirement planning to take a backseat. It’s important to remember that saving early is the best way to arrive safely and comfortably at your retirement destination. In your 40s or 50s, you may feel discouraged if you haven’t saved enough, or anything at all. Even if you feel that the final account balance may not cover the retirement of your dreams, it may help to pay off debt or provide you the opportunity to retire a bit sooner than planned. Every little bit helps.
Taking advantage of your company’s workplace retirement plan is a no-brainer. If your employer offers a match, make sure you are contributing the maximum amount required. It’s recommended to save 10 to 15% of your income for retirement. That may seem like a lot, especially in the early years of your career, but consider this: If you contribute 5%, and your employer matches that, you’re saving 10%! As you progress in your career, increase your contribution amount. Being flexible is an important part of the journey.
On the journey to retirement, there will inevitably be bumps and unexpected detours. A thoughtful strategy and the ability to remain flexible are the fuel you’ll need to reach your destination – no matter what retirement looks like for you.
No matter where you are on the road to retirement, BPAS University has resources for you! Check it out at <a href="http://u.bpas.com">u.bpas.com</a>. 
The post <a href="https://www.bpas.com/blog/retirement-myths/">Retirement Myths: BUSTED</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></content:encoded>
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<item>
<title>Choosing the Best Employee Benefits Package: 5 Essential Components</title>
<link>https://www.bpas.com/blog/employee-benefits/</link>
<dc:creator><![CDATA[Nicole Ossevoort]]></dc:creator>
<pubDate>Thu, 04 Apr 2024 14:06:21 +0000</pubDate>
<category><![CDATA[HSAs]]></category>
<category><![CDATA[Financial Education]]></category>
<category><![CDATA[Flexible Spending Accounts]]></category>
<guid isPermaLink="false">https://www.bpas.com/blog/leap-year-copy/</guid>
<description><![CDATA[April 6th is National Employee Benefits Day. Not only is it a great opportunity to recognize the people who administer employee benefits, it’s an opportunity to evaluate the most valuable components of an employee benefits package. In today’s competitive job market, attracting and retaining the right people requires more than just a competitive salary. Employee … 
The post <a href="https://www.bpas.com/blog/employee-benefits/">Choosing the Best Employee Benefits Package: 5 Essential Components</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></description>
<content:encoded><![CDATA[April 6th is National Employee Benefits Day. Not only is it a great opportunity to recognize the people who administer employee benefits, it’s an opportunity to evaluate the most valuable components of an employee benefits package.
In today’s competitive job market, attracting and retaining the right people requires more than just a competitive salary. Employee benefits play a crucial role in enticing prospective employees and keeping current ones satisfied and engaged. Among the many benefits offered by companies, there are a few you should consider must-haves for security, well-being, and financial stability.
Here are the top five things to look for in an employee benefits package, including workplace retirement plans, Health Savings Accounts (HSA), and Flexible Spending Accounts (FSA). 
Workplace Retirement Plans: Planning for retirement is a cornerstone of financial well-being – and it’s never too early to start saving! A <a href="https://u.bpas.com/workplace-retirement-plans-401k-403b-and-more/">workplace retirement plan</a> like a 401(k) or 403(b) can significantly contribute to your long-term financial security. Look for employers who offer generous employer matching contributions or profit-sharing arrangements, as these can substantially boost your retirement savings. Additionally, consider the diversity of investment options available within the plan to tailor your portfolio according to your risk tolerance and financial goals.
Health Savings Accounts (HSA): HSAs are a valuable tool for managing healthcare costs, especially with high-deductible health plans (HDHPs). Contributions to an <a href="https://u.bpas.com/what-is-an-hsa/">HSA</a> are tax-deductible, and funds can be used tax-free for qualified medical expenses, including copayments and medical supplies. Unlike Flexible Spending Accounts (FSAs), HSA funds roll over from year to year, allowing for long-term savings and investment growth. A company that offers an HSA option demonstrates a commitment to employee health and financial wellness.
Flexible Spending Accounts (FSA): While HSAs are geared towards high-deductible health plans, an <a href="https://u.bpas.com/flexible-spending-accounts-fsa-faqs/">FSA</a> caters to a broader range of medical expenses. FSAs allow employees to set aside pre-tax dollars to cover qualified medical, dental, and vision expenses not covered by insurance. These funds can be used for co-pays, deductibles, prescription medications, and even certain over-the-counter items. FSAs typically have a “use-it-or-lose-it” provision, meaning any unused funds at the end of the plan year may be forfeited. Still, FSAs remain a valuable benefit for managing healthcare expenses efficiently.
Comprehensive Health Insurance: Health insurance remains one of the most critical components of any benefits package. A health insurance plan should cover a wide range of medical services, including hospitalization, prescription drugs, preventive care, and mental health services. Think about factors like deductibles, co-payments, and coverage for dependents to ensure the plan meets your needs and those of your family. Some companies may offer dental, vision, and even alternative medicine coverage, providing employees with holistic health benefits.
Additional Perks and Benefits: Beyond the essentials, companies may offer a variety of additional perks and benefits to enhance. These could include wellness programs, gym memberships, commuter benefits, tuition reimbursement, and employee assistance programs (EAPs). Some organizations offer remote or hybrid work, allowing for maximum work-life balance.
Pay close attention to the employee benefits package offered by prospective employers. A comprehensive benefits package, encompassing health insurance, retirement accounts, HSAs, FSAs, and additional perks, can significantly impact your financial security, health, and overall satisfaction in the workplace. By prioritizing these essential components, you can make an informed decision that aligns with your personal and professional goals. Remember, your benefits package is more than just a list of perks—it’s an investment in your future.
Want to learn more about the benefits mentioned in this blog post? Visit <a href="http://u.bpas.com">BPAS University</a> to get started!
The post <a href="https://www.bpas.com/blog/employee-benefits/">Choosing the Best Employee Benefits Package: 5 Essential Components</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></content:encoded>
</item>
<item>
<title>Leap Into Retirement Planning</title>
<link>https://www.bpas.com/blog/leap-year/</link>
<dc:creator><![CDATA[Nicole Ossevoort]]></dc:creator>
<pubDate>Wed, 28 Feb 2024 15:43:16 +0000</pubDate>
<category><![CDATA[Retirement Planning]]></category>
<guid isPermaLink="false">https://www.bpas.com/blog/financial-new-year-copy/</guid>
<description><![CDATA[Every four years, we experience an extra day in our calendars, thanks to the phenomenon known as Leap Year. The bonus day can serve as a powerful reminder to take a leap into the future and prioritize long-term goals—especially when it comes to retirement planning. What’s a Leap Year? The concept of Leap Year stems … 
The post <a href="https://www.bpas.com/blog/leap-year/">Leap Into Retirement Planning</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></description>
<content:encoded><![CDATA[Every four years, we experience an extra day in our calendars, thanks to the phenomenon known as Leap Year. The bonus day can serve as a powerful reminder to take a leap into the future and prioritize long-term <a href="https://u.bpas.com/are-you-on-target-for-your-retirement-goals/">goals</a>—especially when it comes to retirement planning.
What’s a Leap Year?
The concept of Leap Year stems from the Earth’s orbit around the sun, which takes approximately 365.25 days. To keep our calendars in sync, we add an extra day to the calendar every four years. This cyclical event is an opportunity to remind folks about the periodic assessments needed for successful retirement planning.
Periodic Review: Just as we adjust our calendars every four years, it’s crucial to periodically review and adjust our retirement plans. Life circumstances, financial goals, and the economic landscape can change over time. The Leap Year can serve as a reminder to conduct a regular comprehensive review of your retirement strategy, ensuring it remains aligned with your evolving needs. An annual <a href="https://u.bpas.com/financial-health-check-up/">financial health check-up</a> is recommended, especially if you are nearing retirement age.
Compound Growth: Your retirement savings benefit from the power of compounding interest. The <a href="https://u.bpas.com/the-importance-of-saving-early/">earlier you start saving</a> and investing, the more time your money has to grow exponentially. Don’t wait until the extra day in the Leap Year! Assess your investment portfolios, explore opportunities for growth, and make adjustments to harness the full potential of compound interest on a regular basis.
Long-Term Vision: Retirement planning is a long-term endeavor, and the four-year cycle of Leap Year encourages us to adopt a forward-thinking mindset. It prompts us to consider not only the immediate future but also the extended timeline of our retirement years. Take this opportunity to envision the lifestyle you want in retirement and adjust your savings and investment strategies accordingly.
Adjusting Strategies: An extra day can catch us off guard – if we’re not prepared. Your retirement plans may need tweaking as life circumstances change. Consider factors such as career transitions and health changes. Review your retirement contributions, <a href="https://u.bpas.com/what-kind-of-investor-are-you/">risk tolerance</a>, and overall financial plan to ensure it adapts to the inevitable shifts that occur over time.
Seizing Opportunities: A Leap Year presents an extra day—an additional opportunity. Likewise, <a href="https://u.bpas.com/6th-grade-advisor/">unexpected windfalls</a>, career advancements, or financial bonuses can be considered as extra opportunities to bolster your retirement savings. Use these moments wisely by channeling them into your retirement fund, taking advantage of any employer-sponsored plans, or exploring additional investment options.
As we celebrate Leap Year, let it serve as a valuable reminder to leap into action when it comes to retirement planning. Embrace the opportunity to review, adjust, and optimize your retirement strategy, ensuring that you’re on track to make the most of your retirement years.
For more information on investing, planning for retirement, and more, visit <a href="https://u.bpas.com/">BPAS University</a>.
The post <a href="https://www.bpas.com/blog/leap-year/">Leap Into Retirement Planning</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></content:encoded>
</item>
<item>
<title>Tips for a Financially Savvy New Year</title>
<link>https://www.bpas.com/blog/financial-new-year/</link>
<dc:creator><![CDATA[Nicole Ossevoort]]></dc:creator>
<pubDate>Mon, 18 Dec 2023 14:17:21 +0000</pubDate>
<category><![CDATA[Retirement Planning]]></category>
<category><![CDATA[Financial Education]]></category>
<category><![CDATA[Investing]]></category>
<guid isPermaLink="false">https://www.bpas.com/blog/secure-ltpt-copy/</guid>
<description><![CDATA[Creating intentional and manageable financial goals for the new year is an excellent way to make every dollar count. Here are five quick tips for making financial New Year’s resolutions: Create and stick to a budget: Establish a realistic budget that considers your income, expenses, and financial goals. Regularly track and review your spending to … 
The post <a href="https://www.bpas.com/blog/financial-new-year/">Tips for a Financially Savvy New Year</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></description>
<content:encoded><![CDATA[Creating intentional and manageable financial goals for the new year is an excellent way to make every dollar count. Here are five quick tips for making financial New Year’s resolutions:
<ol class="ol1">
<li class="li1">Create and stick to a budget: Establish a realistic budget that considers your income, expenses, and financial goals. Regularly track and review your spending to ensure you stay on track throughout the year. Take our <a href="https://u.bpas.com/financial-health-check-up/">Financial Health Check-Up</a> to determine your current financial status and pinpoint areas for improvement.</li>
<li class="li1">Build up an Emergency Fund: Commit to building or replenishing your emergency fund. Aim to save at least three to six months’ worth of living expenses in a readily accessible account to provide a financial safety net in case of unexpected expenses or job loss.</li>
<li class="li1">Reduce debt: Develop a plan to pay down high-interest debt. Prioritize debts with the highest interest rates and consider consolidating loans or negotiating with creditors to improve your financial position. If you’re feeling a financial pinch, consider the “Snowball Method” – pay down the smallest debt as quickly as you can (without jeopardizing your overall financial picture) and then take the funds you were putting towards that payment and use it to pay down the next-smallest debt owed. This process would continue until all debts are paid off.</li>
<li class="li1">Invest for the future: Whether through retirement accounts, stocks, or other investment vehicles, commit to investing for your future. Review and adjust your investment strategy based on your risk tolerance, financial goals, and market conditions. The <a href="https://u.bpas.com/what-kind-of-investor-are-you/">Risk Tolerance Quiz</a> at BPAS University is a great place to start!</li>
<li class="li1">Stay informed: Dedicate time to enhance your financial literacy. Educate yourself on personal finance topics such as investing, taxes, and retirement planning. <a href="https://u.bpas.com/">BPAS University </a>offers a variety of resources – and is updated regularly!</li>
</ol>
<h6 class="p1">What if I’m nearing retirement?</h6>
Your financial resolutions may be different if you’re close to retirement age:
<ol class="ol1">
<li class="li3">Maximize retirement contributions: Resolve to make the most of your remaining working years by maximizing contributions to workplace retirement plans such as 401(k) or 403(b) plans, as well as your IRA or other retirement accounts. <a href="https://u.bpas.com/catch-up-contributions/">Catch-up contributions</a> for workplace retirement plans are available for individuals nearing retirement age, allowing you to boost your retirement savings and take advantage of potential tax benefits.</li>
<li class="li3">Make a plan for reliable retirement income: Develop a detailed plan for how you’ll generate income in retirement. This may involve assessing your <a href="https://u.bpas.com/understanding-social-security/">Social Security </a>options, evaluating pension benefits, and strategically withdrawing funds from various retirement accounts. Consider consulting with a financial advisor to ensure your plan aligns with your goals and takes into account factors like inflation, healthcare costs, and potential market fluctuations.</li>
<li class="li3">Review – and adjust – your investment portfolio: As you approach retirement, it’s crucial to reassess your investment portfolio to align with your changing risk tolerance and income needs. You may consider a shift towards a more conservative allocation to protect your savings from market volatility. Or, you may want to diversify your investments to mitigate risk. Periodically review and rebalance your portfolio to ensure it remains in line with your financial objectives. This can help safeguard your nest egg and provide a more stable income stream during your retirement years.</li>
</ol>
Finally, it’s important to celebrate financial wins – big or small. Celebrating financial wins is more than just acknowledging the numbers; it’s a moment to recognize the discipline, hard work, and smart decisions that contributed to your success. Whether it’s paying off a debt, reaching a savings milestone, or achieving an investment goal, take a moment to recognize the satisfaction of your financial achievements and use them as motivation for future endeavors.
Ready to learn more? Visit <a href="http://u.bpas.com">u.bpas.com</a> to get started!
The post <a href="https://www.bpas.com/blog/financial-new-year/">Tips for a Financially Savvy New Year</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
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<item>
<title>Revised 401(k) Eligibility Criteria for Long-Term Part-Time Employees</title>
<link>https://www.bpas.com/blog/secure-ltpt/</link>
<dc:creator><![CDATA[Maryann Geary]]></dc:creator>
<pubDate>Thu, 30 Nov 2023 16:12:41 +0000</pubDate>
<category><![CDATA[SECURE 2.0 Act]]></category>
<guid isPermaLink="false">https://www.bpas.com/blog/year-end-contributions-copy/</guid>
<description><![CDATA[On December 29, 2022, President Biden signed into law the SECURE 2.0 Act of 2022 (SECURE 2.0). This Act expands the eligibility provisions of 401(k) plans for Long-Term Part-Time (LTPT) employees beginning January 1, 2024. Note: the information provided below is intended for existing BPAS plans. Who is eligible? Under the SECURE Act, LTPT employees … 
The post <a href="https://www.bpas.com/blog/secure-ltpt/">Revised 401(k) Eligibility Criteria for Long-Term Part-Time Employees</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></description>
<content:encoded><![CDATA[On December 29, 2022, President Biden signed into law the SECURE 2.0 Act of 2022 (SECURE 2.0). This Act expands the eligibility provisions of 401(k) plans for Long-Term Part-Time (LTPT) employees beginning January 1, 2024.
Note: the information provided below is intended for existing BPAS plans.
<h6>Who is eligible?</h6>
Under the SECURE Act, LTPT employees are defined as:
• Employees who are at least 21 years old and have worked three consecutive 12-month periods in which they performed at least 500, but less than 1,000, hours of service during each period.
• Plan years prior to January 1, 2021, are disregarded when determining whether an employee is an LTPT employee, which means the earliest an LTPT employee could become eligible to participate in a plan is January 1, 2024.
• LTPT employees must complete at least 500 hours of service in each 12-month eligibility service period.
• This eligibility period must happen over three consecutive years.
If your plan document excludes a certain classification of employees, the exclusion cannot be applied to LTPT employees. It is your responsibility to offer these LTPT employees the ability to participate in the salary deferral portion of the plan.
<h6>What are they eligible for?</h6>
This provision allows LTPT employees to make salary deferral contributions to the 401(k) plan. To comply with this provision, your 401(k) plan will need to be amended to include a dual eligibility requirement under which an employee must complete either a one-year service requirement (1,000 hours of service during the 12-month eligibility service computation period) or three consecutive years of service where the employee completes at least 500 hours of service in a 12-month eligibility service computation period. As a plan sponsor, you still have the option to require an employee to satisfy the minimum age and service requirements to become eligible to receive any employer contributions.
<h6 class="p1">Are there changes we can make to our plan to avoid this requirement?</h6>
Some plan designs will not be affected by the LTPT employee provision. For example, if a plan allows immediate eligibility or requires a short service requirement, such as three months or less, the LTPT employee provision will not apply since employees will be eligible before completing 500 hours of service. Alternatively, the LTPT rules will not apply to a plan using the “elapsed time method” for determining eligibility. A one year eligibility service requirement under the elapsed time method means that the employee does not need to work a certain number of hours but must still be employed on their one-year employment anniversary date to satisfy the plan’s eligibility service requirement. The LTPT employee provision will not apply to those employees since they will be eligible to participate in the plan after they satisfy the plan’s age, service, and entry date requirements.
<h5>LEARN MORE: <a href="https://www.bpas.com/wp-content/uploads/2024-Supplement-LTPT-Employees-2.pdf">SECURE 2.0 ACT PROVISIONS FOR LTPT EMPLOYEES</a></h5>
We realize that the regulations regarding LTPT employees are complex. To help you understand the provisions more fully, we encourage you to view a six-minute video that provides a more in-depth explanation.
<h5><a href="https://vimeo.com/bpas/ltpt?share=copy">QUICK TAKE: LONG-TERM PART-TIME EMPLOYEES</a></h5>
 
 
The post <a href="https://www.bpas.com/blog/secure-ltpt/">Revised 401(k) Eligibility Criteria for Long-Term Part-Time Employees</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
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<item>
<title>A Year-End Guide to IRA Contributions</title>
<link>https://www.bpas.com/blog/year-end-contributions/</link>
<dc:creator><![CDATA[BPAS]]></dc:creator>
<pubDate>Tue, 21 Nov 2023 15:34:37 +0000</pubDate>
<category><![CDATA[IRA]]></category>
<guid isPermaLink="false">https://www.bpas.com/blog/open-enrollment-two-copy/</guid>
<description><![CDATA[Now is the perfect time to make a tax-deferred contribution and give yourself the gift of financial growth! In the realm of retirement planning, Individual Retirement Accounts (IRAs) play a crucial role in building a secure financial future. Whether you’re new to the world of IRAs or a seasoned investor, understanding the ins and outs … 
The post <a href="https://www.bpas.com/blog/year-end-contributions/">A Year-End Guide to IRA Contributions</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></description>
<content:encoded><![CDATA[Now is the perfect time to make a tax-deferred contribution and give yourself the gift of financial growth!
In the realm of retirement planning, Individual Retirement Accounts (IRAs) play a crucial role in building a secure financial future. Whether you’re new to the world of IRAs or a seasoned investor, understanding the ins and outs of contribution options can significantly impact the success of your retirement strategy. In this blog post, we’ll explore some key insights about Traditional and Roth IRA contributions and why it’s essential to start contributing sooner rather than later.
<h6 class="p4">Traditional vs. Roth IRA Contributions</h6>
Did you know that Traditional IRA contributions may be tax-deductible? On the other hand, Roth IRA contributions are not tax-deductible but offer the advantage of tax-free withdrawals in retirement. Choosing between the two depends on your current financial situation and your expectations for the future.
<h6 class="p4">The Power of Tax-Deferred Growth</h6>
One of the primary benefits of contributing to an IRA is the tax-deferred growth of your investments. This means that any earnings on your contributions grow without being taxed until you make withdrawals in retirement. This tax-deferred growth can lead to a substantial amount of money over the years, providing a financial cushion for your retirement.
<h6 class="p1">Contribution Limits for 2023</h6>
For the year 2023, the IRA contribution limit is $6,500. If you’re aged 50 or over, you have the opportunity to make an additional $1,000 catch-up contribution, allowing you to supercharge your retirement savings. It’s important to be aware of these limits and take full advantage of them to optimize your retirement portfolio.
<h6 class="p1">Start Early, Save Smart</h6>
Every little bit helps when it comes to retirement savings. Even if you can’t contribute the entire $6,500 annually, making smaller contributions can still make a significant impact over time. Before making impulsive purchases, consider redirecting that money towards your retirement fund. A small sacrifice today could lead to a more comfortable and secure retirement tomorrow.
<h6 class="p1">Deadline for Contributions</h6>
The deadline to make IRA contributions for the year 2023 is April 14, 2024. This provides a valuable window of opportunity to assess your financial situation and contribute before the deadline. Remember, the sooner you contribute, the sooner your money starts working for you, accruing potential gains over time. Kickstart the new year by investing in yourself!
<h5 class="p2">Accountholders: Ready to contribute? Login to your account <a href="https://e2.bpas.com/Identity/Account/Login">here</a>. </h5>
On the road to retirement, knowledge is key. Understanding the nuances of IRA contributions, the benefits of tax-deferred growth, and the significance of early contributions can make a substantial difference in your financial future. BPAS University offers a number of related resources created to make the road to retirement as smooth as possible. Visit <a href="https://u.bpas.com/retirement-planning/">https://u.bpas.com/retirement-planning/</a> to learn more!
The post <a href="https://www.bpas.com/blog/year-end-contributions/">A Year-End Guide to IRA Contributions</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
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<title>A Comprehensive Guide to Navigating Open Enrollment: Part Two</title>
<link>https://www.bpas.com/blog/open-enrollment-two/</link>
<dc:creator><![CDATA[BPAS]]></dc:creator>
<pubDate>Mon, 20 Nov 2023 15:41:56 +0000</pubDate>
<category><![CDATA[Open Enrollment]]></category>
<guid isPermaLink="false">https://www.bpas.com/blog/open-enrollment-23-copy/</guid>
<description><![CDATA[Open enrollment season is upon us, and it’s that time of year when you have the opportunity to review, renew, and make choices that can significantly impact your financial and healthcare future. Whether you’re selecting a health insurance plan, considering life or disability coverage, or evaluating other employee benefits, open enrollment is your window of … 
The post <a href="https://www.bpas.com/blog/open-enrollment-two/">A Comprehensive Guide to Navigating Open Enrollment: Part Two</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></description>
<content:encoded><![CDATA[Open enrollment season is upon us, and it’s that time of year when you have the opportunity to review, renew, and make choices that can significantly impact your financial and healthcare future. Whether you’re selecting a health insurance plan, considering life or disability coverage, or evaluating other employee benefits, open enrollment is your window of opportunity to make informed decisions that will shape the year ahead. In Part One, we kicked things off by covering the basics of HSAs and FSAs and went over vision and dental insurance. Our coverage continues below:
<h5 class="p3">Safeguarding Your Loved Ones: The Essential Role of Life Insurance</h5>
Life insurance offers financial security for your family should something happen to you. During open enrollment, you can review and adjust your policy to match your present situation. There are various ways to calculate the amount of life insurance that’s right for you.
The Human Life Value Approach: The Human Life Value (HLV) approach is a method used to determine the appropriate amount of life insurance coverage a person should have based on their economic value to their family or dependents. This approach focuses on assessing an individual’s future earnings and the financial support they provide to their loved ones.
The Needs Approach: The Needs Approach is a method used to determine the appropriate amount of insurance coverage a person should have based on their specific financial obligations and the needs of their beneficiaries in the event of the policyholder’s death. This approach focuses on assessing the financial requirements of the policyholder’s surviving dependents and other obligations rather than estimating the policyholder’s potential future earnings, as is the case with the Human Life Value approach.
The Capitalized Earnings Approach: The Capitalized Earnings Approach is a method used to determine the appropriate amount of life insurance coverage by focusing on the income or earnings that the policyholder’s family or dependents would need to replace in the event of their death. This approach is particularly relevant for individuals who are primary income earners or play a significant financial role in their families.
For individuals who face challenges in meeting the underwriting criteria for life insurance, group life insurance could be an option to obtain coverage without the need to provide evidence of insurability. Although group insurance can offer more affordability compared to individual policies, the maximum coverage available may not adequately address all your requirements.
<h5 class="p3">Protecting Your Financial Future: The Crucial Role of Disability Insurance</h5>
Disability insurance is like a safety net for your income. If you get sick or hurt and can’t work, it provides you with money to help cover your living expenses, like rent, food, and bills, until you can work again or, in some cases, for the rest of your life. It’s like income protection when you need it most. While many individuals don’t choose this insurance option, it’s worth considering if your employer offers it.
There are two terms of disability insurance:
Short-Term: These policies pay benefits for short periods of time ranging from three months to two years. The most common policy duration is one year. Short-term insurance policies typically come with higher costs compared to long-term ones. It’s often advised to rely on an emergency fund to help maintain your usual lifestyle during a short-term disability. Using short-term disability benefits can also provide additional income to support you during the period following the birth of your baby.
Long-Term: These benefits start once your short-term disability coverage ends and can extend until you reach retirement age or in the event of your passing. Most people do not have the funds to cover a gap in income due to a disability should it be long-term, which is where the need to insure comes into play.
To qualify, you must meet the specific criteria for what is considered a disability, and it’s important to note that this definition can vary from one insurance policy to another. It’s a good practice to review your policy’s definition of disability.
Here are some considerations to keep in mind when reviewing your organization’s disability insurance policy:
<ol class="ol1">
<li class="li1">What is the elimination period for short-term and long-term disability?</li>
<li class="li1">How long is the benefit period?</li>
<li class="li1">What % of my salary is covered and is it integrated with Social Security?</li>
<li class="li1">What is the definition of a disability?</li>
<li class="li1">If I leave this employer is the coverage portable?</li>
<li class="li1">Will benefits received be taxable or tax-free?</li>
</ol>
Additionally, it’s crucial to be aware that if you use post-tax income to cover your policy premiums, the benefits you receive won’t be subject to income tax. However, if the premiums were paid with pre-tax income, for example, if your employer offers this benefit at no expense to you, then the benefits become taxable income.
<h5 class="p1">Employer-Sponsored Retirement Plans: Your Path to Financial Independence</h5>
Aside from health insurance, the most popular employee benefit is workplace retirement plans. Retirement and financial Independence are on the minds of many Americans, but to achieve it, we need to have enough savings. There are multiple vehicles to save for retirement, but very few, if any, offer more benefits to achieve financial independence than the trusty workplace retirement plan.
Not only do employees receive tax incentives by contributing to their workplace retirement plan (in the form of pre-tax or Roth, if your plan allows) but many receive additional pay from through an employer match or contribution.
While you can make changes to your retirement plan at any time, open enrollment serves as a good opportunity to check in and see if you are maximizing your benefits. Below are some recommended approaches:
<ol class="ol1">
<li class="li1">Take advantage of the employer match: If your employer offers a matching contribution, aim to contribute at least enough to get the full match. It is essentially free money that can significantly boost your savings.</li>
<li class="li1">Tax efficiency: Be mindful of the tax advantages of your 401(k). Contributions are made pre-tax, reducing your taxable income, and investments grow tax-deferred. Consider the Roth 401(k) option if your plan offers it, which provides tax-free withdrawals in retirement.</li>
<li class="li1">Start Early: The earlier you start, the more time you have on your side to allow compounding interest to work its magic. Feeling like you’re too young to start saving for retirement? Check out this video on BPAS University that explains the gift of compounding interest.</li>
<li class="li1">Increase your Savings Rate: You’ve probably heard in the past that 10% is a good savings rate for retirement. Some people would argue that the number is closer to 15-20%, but for argument’s sake, let’s agree on a double-digit savings rate being preferred. Most people cannot afford a double-digit savings rate right off the bat, and it’s okay to work up to that gradually. If you get a 2% salary increase every year, consider keeping 1% for yourself and contributing the other 1% into your retirement plan until you are at a savings rate that will support your goal of retiring one day.</li>
<li class="li1">Keep the retirement account a retirement account: Avoid withdrawing from this account for anything other than retirement. Building a separate fund for emergencies, a boat, or your school tuition will help you avoid any penalties and keep you on track.</li>
<li class="li1">Stay informed: Know the rules and options for your plan. Vesting schedules, withdrawal rules, etc. Your Plan Sponsor or Financial Advisor can provide this information.</li>
<li class="li1">Diversify your investments: Spreading your contributions across several different asset classes can reduce your risk. Consider your risk tolerance and time horizon and seek professional help should you need it.</li>
<li class="li1"> Review your beneficiaries: As you’re going through open enrollment, you may have identified your partner and children as dependents in your health care plan or recipients of any life insurance plans. While that information is readily available, review the beneficiaries of your Workplace Savings Account to make sure they’re also up to date.</li>
</ol>
Open enrollment is a critical period for taking control of your healthcare and financial well-being. It’s the time to carefully assess your needs and options, whether you’re considering health insurance, life insurance, or other employee benefits. It’s an opportunity to make informed decisions about your coverage, ensuring it aligns with your current circumstances and future goals. Remember to review all available plans, weigh the costs and benefits, and seek guidance if you’re unsure. Your choices during open enrollment can have a profound impact on your health, financial security, and peace of mind. So, make the most of this window of opportunity and empower yourself with the right insurance choices for the year ahead.
Sources:
<ol class="ol1">
<li class="li4"> <a href="https://www.bls.gov/news.release/ecec.t01.htm">https://www.bls.gov/news.release/ecec.t01.htm</a></li>
<li class="li5">Dalton, James F., et al. Insurance Planning / James F. Dalton, Michael A. Dalton, Thomas P. Langdon, Joseph M. Gillice. 7th ed., Money Education, 2020.</li>
</ol>
Post contributed by Dalton Lehnen, CERTIFIED FINANCIAL PLANNER<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/2122.png" alt="™" class="wp-smiley" style="height: 1em; max-height: 1em;" /> | Trust Officer
The post <a href="https://www.bpas.com/blog/open-enrollment-two/">A Comprehensive Guide to Navigating Open Enrollment: Part Two</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
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<title>HSA: Healthy Balance / Healthy Future</title>
<link>https://www.bpas.com/blog/hsa-healthy-balance-healthy-future/</link>
<dc:creator><![CDATA[Renee House]]></dc:creator>
<pubDate>Thu, 16 Nov 2023 19:26:36 +0000</pubDate>
<category><![CDATA[HSAs]]></category>
<guid isPermaLink="false">https://www.bpas.com/?p=9488</guid>
<description><![CDATA[Let’s look at how Health Savings Accounts (HSA) strike a healthy balance between saving for today and the future. While HSAs are designed to help you save for present medical expenses, they can also serve as a powerful tool that allows you to save for the future. Here are just a few of the reasons … 
The post <a href="https://www.bpas.com/blog/hsa-healthy-balance-healthy-future/">HSA: Healthy Balance / Healthy Future</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></description>
<content:encoded><![CDATA[Let’s look at how <a href="https://u.bpas.com/health-savings-reimbursement-accounts/">Health Savings Accounts</a> (HSA) strike a healthy balance between saving for today and the future. While HSAs are designed to help you save for present medical expenses, they can also serve as a powerful tool that allows you to save for the future. Here are just a few of the reasons why:
<ul>
<li>Because funds contributed into HSAs are tax-free, there is an incentive for you to contribute generously up to the annual contribution limit set by the IRS.</li>
<li>You can take your HSA with you if you leave your current employer without losing any of the money that you’ve saved and invested.</li>
<li>You can contribute after-tax earnings at any time (up to the contribution limit). This makes it a great way to save and invest any bonuses or windfalls that you receive.</li>
<li>An HSA account may receive contributions from any person, including an employer or a family member or even a complete stranger, on behalf of an eligible individual.</li>
<li>You don’t have to spend it on yourself; funds in an HSA can be used by qualified dependents such as a spouse or children.</li>
<li>Funds contributed to an HSA are tied to a participant-directed investment account. You’ll have the potential to earn a rate of return much like a 401(k).</li>
<li>Funds withdrawn from an HSA remain tax free as long as they’re used for eligible medical expenses.</li>
</ul>
This makes an HSA an account that you can manage, contribute to, and maintain your entire life.
<h4 class="wp-block-heading">How Much Can You Save?</h4>
HSA contribution amounts are updated annually and typically announced in the spring. For 2024, self-only coverage means you can contribute up to $4,150 to your HSA; the limit for family coverage is $8,300. Once you reach age 55, you can make catch-up contributions of $1,000 annually. This allows a family coverage to max out at $9,300 in 2024 and single coverage to max out at $5,150.
Let’s say you’re 45. You want to contribute $4,000 a year for the next 20 years toward your HSA and you’re not planning to use any of those contributions for current medical expenses. Assuming a 5 percent rate of return, that’s over $135,000 at age 65 that you can spend tax-free on future medical expenses. If you increase your HSA contribution by 3% each year, you’d have close to $174,000! If you were to spend the money on non-medical expenses after age 65, you would only be subject to income tax on the money spent. There are no penalties applied to non-medical withdrawals over age 65.
This makes an HSA an ideal way to pay for medical expenses in retirement. You can continue contributing after age 65 as long as you are not enrolled in Medicare. If you are enrolled in Medicare, you can continue to withdraw funds for approved medical expenses tax-free.
<h4 class="wp-block-heading">Want to start saving with an HSA?</h4>
If you want open an HSA, you must be enrolled in a qualified high deductible health plan. If you have an HSA, remember: any unused contributions at the end of the year will carryover to the next year. Check to see if your employer makes a contribution to your HSA. You can invest those funds too. Not sure how much to contribute? Our HSA Calculators can help. Visit <a href="https://u.bpas.com/health-savings-reimbursement-accounts/" target="_blank" rel="noopener">BPAS University</a> to learn more.
The post <a href="https://www.bpas.com/blog/hsa-healthy-balance-healthy-future/">HSA: Healthy Balance / Healthy Future</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
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<title>Unpacking the 2024 Cost-of-Living Adjustments</title>
<link>https://www.bpas.com/blog/2024-cola/</link>
<dc:creator><![CDATA[BPAS]]></dc:creator>
<pubDate>Tue, 14 Nov 2023 12:52:44 +0000</pubDate>
<category><![CDATA[Financial News]]></category>
<category><![CDATA[COLA]]></category>
<guid isPermaLink="false">https://www.bpas.com/blog/open-enrollment-two-copy/</guid>
<description><![CDATA[The Internal Revenue Service (IRS) announced the 2024 Cost-of-Living Adjustments (COLA), setting the stage for new opportunities and considerations in managing personal finances. In this blog post, we’ll delve into the key highlights of the 2024 COLA and explore what it means for employees participating in various retirement plans. Changes in Contribution Limits One of … 
The post <a href="https://www.bpas.com/blog/2024-cola/">Unpacking the 2024 Cost-of-Living Adjustments</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
]]></description>
<content:encoded><![CDATA[The Internal Revenue Service (IRS) announced the 2024 Cost-of-Living Adjustments (COLA), setting the stage for new opportunities and considerations in managing personal finances. In this blog post, we’ll delve into the key highlights of the 2024 COLA and explore what it means for employees participating in various retirement plans.
<h5 class="p3">Changes in Contribution Limits</h5>
One of the most anticipated aspects of the annual COLA announcement is the adjustment of contribution limits for retirement plans. This year, the IRS has shared a modest increase. Employees engaged in 401(k), 403(b), and most 457 plans, as well as participants in the federal government’s Thrift Savings Plan, will now see a revised contribution limit of $23,000, up from the previous $22,500.
The catch-up contribution cap for individuals aged 50 and above engaged in 401(k), 403(b), and most 457 plans, along with the federal government’s Thrift Savings Plan, remains unchanged at $7,500 for the year 2024. Consequently, those aged 50 and older participating in these plans can now contribute a total of $30,500 starting in 2024.
The limit on annual contributions to an IRA increased to $7,000, up from $6,500. The <a href="https://www.bpas.com/blog/the-secure-act-2-0-what-you-need-to-know/">SECURE 2.0 Act</a> introduced a modification to the IRA catch-up contribution limit for individuals aged 50 and over by incorporating an annual cost-of-living adjustment. Despite this adjustment, the limit stands at $1,000 for the coming year.
The income thresholds for the Saver’s Credit, also recognized as the Retirement Savings Contributions Credit, has increased about 4.5%. The Saver’s Credit makes retirement savings more attainable for low- and moderate-income workers. For married couples filing jointly, the limit has been raised to $76,500 from $73,000. Heads of household now have a limit of $57,375, up from $54,750, while singles and married individuals filing separately see a new limit of $38,250 (an increase from $36,500).
Additionally, the allowable contribution amount to SIMPLE retirement accounts has been raised to $16,000, marking an increase from the previous limit of $15,500.
<h5 class="p4">Understanding the Impact</h5>
While the increase may not be as dramatic as in previous years, it signals a subtle shift in the financial landscape. The uptick in contribution limits offers individuals an opportunity to boost their retirement savings, aligning with the ever-changing cost of living. This adjustment is especially relevant for those who are diligent about optimizing their retirement portfolios and making the most of available tax advantages.
<h5 class="p3">Considerations for Employees</h5>
For employees participating in a workplace retirement plan, now is an opportune time to revisit financial goals and reassess contribution strategies. With the new limit in place, individuals may want to consider whether they can comfortably increase their contributions to take full advantage of the adjusted cap. Additionally, those nearing retirement may find it beneficial to consult with financial advisors to ensure their retirement plans align with their long-term objectives.
While the increase in contribution limits may not be groundbreaking, it underscores the importance of staying attuned to the dynamic nature of personal finance. BPAS University offers a wealth of resources to help you stay informed, stay empowered, and make the most of the opportunities that lie ahead in your financial journey. Visit <a href="http://u.bpas.com">u.bpas.com</a> for more!
Information regarding the adjustments in the cost of living for various retirement-related aspects in 2024 can be found in <a href="http://www.irs.gov/pub/irs-drop/n-23-75.pdf">Notice 2023-75</a>, accessible on IRS.gov. Note: COLA numbers for Puerto Rico have not yet been released.
The post <a href="https://www.bpas.com/blog/2024-cola/">Unpacking the 2024 Cost-of-Living Adjustments</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
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<title>Planning for Adoption Finances</title>
<link>https://www.bpas.com/blog/planning-for-adoption/</link>
<dc:creator><![CDATA[Nicole Ossevoort]]></dc:creator>
<pubDate>Mon, 13 Nov 2023 15:07:11 +0000</pubDate>
<category><![CDATA[Financial Education]]></category>
<guid isPermaLink="false">https://www.bpas.com/blog/hsa-healthy-balance-healthy-future-copy/</guid>
<description><![CDATA[November is National Adoption Month The decision to adopt a child is a profound and rewarding journey that transforms lives. But it’s not just a personal journey—it can also be a financial one. To support adoptive families, the U.S. government offers both an Adoption Tax Credit and Qualified Birth or Adoption Distributions (QBOAD), which can … 
The post <a href="https://www.bpas.com/blog/planning-for-adoption/">Planning for Adoption Finances</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
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<content:encoded><![CDATA[November is National Adoption Month
The decision to adopt a child is a profound and rewarding journey that transforms lives. But it’s not just a personal journey—it can also be a financial one. To support adoptive families, the U.S. government offers both an <a href="https://www.irs.gov/taxtopics/tc607">Adoption Tax Credit</a> and Qualified Birth or Adoption Distributions (QBOAD), which can provide significant financial relief during the adoption process. In this blog post, we will delve into the details of the Adoption Tax Credit and QBOAD, how they work, and how you can maximize their benefits to make your adoption journey more manageable.
<h5 class="p1">Understanding the Adoption Tax Credit</h5>
The Adoption Tax Credit is a financial incentive provided by the federal government to help offset the costs associated with adoption. While it won’t cover all expenses, it can significantly reduce the financial burden of adoption.
Eligibility: To qualify for the Adoption Tax Credit, you must adopt an eligible child (usually under the age of 18) and incur eligible adoption expenses. Your income and tax liability may affect the amount of the credit you can claim.
Eligible Adoption Expenses:
<ul>
<li>Qualifying adoption expenses may include agency fees, court costs, attorney fees, travel, and other necessary expenses directly related to the adoption.</li>
<li>It’s essential to keep detailed records of your expenses to substantiate your claim.</li>
</ul>
<h5>Maximizing the Adoption Tax Credit</h5>
To make the most of the Adoption Tax Credit, consider these strategies:
Consult with a Tax Professional: Adoption tax laws can be complex, and a tax professional can help you navigate the process, ensuring you claim all eligible expenses and receive the maximum credit.
Claiming the Credit: File IRS Form 8839 to claim the Adoption Tax Credit, providing the necessary documentation and proof of expenses. Keep in mind that the credit is non-refundable, meaning it can reduce your tax liability to $0, but you won’t receive a cash refund if the credit exceeds your tax liability.
Special Rules: There are specific rules for adopting a child with special needs that may allow you to claim the full credit even if you did not incur qualifying expenses.
<h5 class="p3">Understanding Qualified Birth or Adoption Distributions</h5>
The 2019 Secure Every Community Up for Retirement Enhancement (SECURE) Act provided employers with the flexibility to permit employees to withdraw funds from their 401(k) retirement accounts to assist in covering expenses related to childbirth or adoption. Effective January 1, 2020, retirement plans have the authority to authorize qualified birth or adoption distributions (QBOADs). A QBOAD can be taken from any “eligible retirement plan” excluding defined benefit plans. Employees can initiate a QBOAD within the twelve-month window following the official adoption of a child.
QBOADs are capped at $5,000 per person for each instance of birth or adoption. This restriction is applicable to all plans in which the employee is enrolled, including those within the employer’s corporate network, plans with other employers where the employee has assets, and any individual retirement account (IRA) maintained by the employee. It’s worth noting that the $5,000 limit pertains to an individual, not a family. Consequently, the employee’s spouse may also receive a separate QBOAD of up to $5,000 for the same adoption, even if both spouses are employed within the same corporate network. Additionally, the $5,000 limit is applicable per child. If an employee adopts twins, they can request two separate QBOADs, totaling up to $10,000.
Note: QBOADs do not fall under the 20% mandatory withholding requirement that is imposed on eligible rollover distributions. Instead, QBOADs adhere to the standard tax withholding regulations for lump sum payments that do not qualify as eligible rollover distributions. This typically involves a mandatory 10% withholding, unless the employee chooses not to have any withholding.
The Adoption Tax Credit and QBOADs are valuable resources for families on an adoption journey, helping to ease the financial strain associated with the process. While they may not cover all adoption expenses, understanding the eligibility criteria and following best practices can provide much-needed financial relief.
The post <a href="https://www.bpas.com/blog/planning-for-adoption/">Planning for Adoption Finances</a> appeared first on <a href="https://www.bpas.com">BPAS</a>.
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