NMDOJ launches website for New Mexicans to report federal program disruptions
New Mexico health experts warn against buying kids baby ducks or chicks for Easter
The NMDOJ will track these issues and report them to the public through the site.
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Don't Need Your Required Minimum Distribution (RMD) Right Now? What Can You Do With the Cash Influx?
Key Points The IRS eventually comes looking for the tax revenue it didn't get to collect earlier on the money invested within IRAs and other tax-deferred accounts. Just because you withdraw money from a tax-sheltered retirement account doesn't mean it can't continue providing value, or continue growing. There's a financial maneuver that can help negate your need to make future RMDs. The $23,760 Social Security bonus most retirees completely overlook › Are you going to be 73 years old (or older) at any point in 2025? If so, whether or not you need it -- or even want it -- you will be legally required to start taking money out of most types of tax-deferred retirement accounts you may own. These withdrawals are called required minimum distributions, in fact, or RMDs -- and failing to make those taxable withdrawals each year before the annual deadline can result in decent-sized penalties. Don't stress out if you just don't need this cash at this time, though. While you can't refuse to withdraw it, you can still do constructive things with it outside of your IRA. Here's a review of your four best options. But first things first. What's an RMD? If you've already been through your first required minimum distribution, then 2025's RMD isn't your first rodeo. If you're unfamiliar with them, though, here's the deal. All the money that's been growing tax-free inside your (non-Roth) IRA, 401(k), or similar account? The IRS eventually wants its cut. The federal government's revenue-collection arm figures that 73 years of age is about as late in life as it wants to let you keep this money completely untaxed. And once you start, you'll take these required minimum distributions every year for the rest of your life. But what's the minimum? It varies with your age. When you're 73, you'll only need to withdraw about 3.77% of your retirement account's value as of the end of the prior year. The proportion gets progressively larger as you age, though, reaching 50% of the prior year's closing value at the rarely seen age of 120. Your brokerage firm or your account's custodian will supply you with the information needed to determine your RMD, and in many cases can figure it out for you. Otherwise, refer to the IRS for instructions. If you own more than one retirement account, that's OK. You can mix and match your withdrawals from the same kinds of retirement accounts to come up with a sum-total RMD figure, and then make the withdrawal from just one of these accounts, or portions from each. The IRS only cares about the total amount it's owed -- not where the money comes from. However, you can't mix and match among different kinds of retirement accounts, like a 403(b) and a traditional IRA. Both of them do have RMDs, but you'll have to handle each category separately. You can only combine like-categorized retirement accounts for RMD calculation and withdrawal purposes. There's one exception to this: 401(k) accounts. If you happen to have more than one 401(k), you need to take your calculated RMD for each one from that one. As for timing, your very first required minimum distribution doesn't need to be completed until April 1 of the year after you turn 73. Past that point, these withdrawals are supposed to be completed by the end of the calendar tax year. That means if you wait to make your first one, you may end up taking two years' worth of RMDs in the year you turn 74. Options Suppose you don't actually need all of that money in that year, though. No problem. While you'll still need to make these withdrawals, there are several options for what you may want to do with the cash influx, some of them specific to IRAs. 1. Give it away (tax efficiently) You can always give money to charitable causes. And, while there are limits, donations to legitimate charities are at least somewhat tax-deductible. If you're over 70 and a half and are willing to transfer cash or assets directly from your IRA to a charity, though, tax-deductibility limits are much higher. Specifically, by categorizing your RMD as a qualified charitable distribution (or QCD), you can take as much as $108,000 worth of an IRA distribution that would have been considered your taxable income (or up to $216,00 for a married couple) and directly transfer it to a charitable cause -- and that maneuver will still satisfy your minimum distribution requirement. You can't do this with 401(k)s or similar accounts. Contact the charity in question for instructions on how they can receive this gift, and then confirm it for your record-keeping and documentation purposes. 2. Tuck it away for a rainy day Just because you don't need this money right now doesn't necessarily mean you want to get rid of it altogether, of course. The day may well come when you do need it. If that's the case, leaving a sizable wad of cash in a checking or savings account is an option, but arguably not your best one. These accounts pay little to no interest. If you're willing to make a minimal amount of effort to shop around, you can find a high-yield money market fund you like instead. Such accounts are currently paying in the ballpark of 4%, and almost all brokerage firms and most online banks offer them. Now, moving money into and out of such funds involves buying and selling just like an ordinary mutual fund. So, to convert that money back to something liquid and cash-like will take one full business day. It's certainly worth the trouble, though, for a good interest rate on the kind of money you're likely to be reallocating with an RMD. 3. Invest it -- or reinvest it -- with its new taxable status in mind Most people slated to collect a required minimum distribution who don't actually need the money at that time are likely just going to reinvest it. However, if you're only going to repurchase the same investments you sold to facilitate the RMD, you need not bother. You can simply request a transfer of assets from an IRA and into an ordinary brokerage account. Just instruct your broker/custodian to do what's called an in-kind transfer. It may take an extra day or two to complete, but you'll still get a precise distribution value figure for the day the transfer was officially done. That being said, while you're moving things around anyway, you might want to use the opportunity to make some smart changes to your portfolio. Just consider the new taxable status for any freed-up money or assets. Nothing that ever happened within your IRA was a taxable event. Now, everything this money could become presents a potential tax liability. If you want to keep your tax bill to a minimum, you probably won't want to invest your entire RMD in dividend stocks. While they're riskier, buy-and-hold growth stocks are also rather tax-efficient. 4. Start saving for a Roth conversion Finally, if you know taking taxable withdrawals out of your retirement account every year is going to be more of a drag than you care to deal with, you've always got the option of converting an ordinary IRA into a Roth IRA -- Roths aren't subject to RMDs. The downside to this move is that when you convert money from an ordinary IRA into a Roth, all the taxes on this withdrawal come due at once. This can get expensive, especially if doing so bumps you into a higher tax bracket for the year. That's why many people who opt for Roth conversions perform them over the course of multiple years, completing the conversion in tranches, each of which is a relatively small income-taxable event. Assuming you'd rather not leave any money out of the newly converted (but still tax-deferring) Roth when you don't have to, you can cover this tax bill with other funds ... including your RMD money. Just bear in mind that a Roth conversion doesn't satisfy your RMD for that year. And, paying taxes on one doesn't negate the tax bill for the other. Every year's required minimum distribution is already determined at the end of the prior year, and is owed whether you do a conversion that year or not. If you like this idea, you'll simply want to convert as much money as possible as quickly as possible to keep your RMDs -- and the number of years you must take them -- to their lowest-possible minimum. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Don't Need Your Required Minimum Distribution (RMD) Right Now? What Can You Do With the Cash Influx? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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3 hours ago
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Delaying Social Security Leads to Bigger Benefits Payments. 3 Ways to Help Make It Happen
Key Points You don't need to start your Social Security benefits and IRA withdrawals at the same time. You may wish to work more years -- and so consider what kind of work you can reasonably do. Adding a few more years of wage-producing work could also bolster your calculated benefits. The $23,760 Social Security bonus most retirees completely overlook › You probably already know that postponing your Social Security retirement benefits will make your eventual payments bigger. Specifically, as things stand right now, for every month after reaching your official full retirement age (or FRA) that you wait to claim, your future payments grow to the tune of 2/3 of 1%. That's 8% per year, for a little more meaningful perspective, which isn't a bad little pay bump. And the program will continue adding this credit every month you postpone your payments all the way until you turn 70. With the average monthly Social Security check now worth $1,976, waiting this long to file for benefits can mean a few hundred extra bucks per month. It's easier said than done, however. Life's realities -- like health issues or expenses -- can get in the way. With that as the backdrop, here's a look at three things you can do to help yourself delay claiming Social Security's retirement payments for as long as possible, beefing up the size of your checks once you do decide to initiate these well-earned benefits. Start your IRA distributions before your Social Security payments Many retirees begin collecting Social Security payments and start living on their retirement savings right after they retire. They often have to, in fact -- life requires it. Even if the mortgage is paid off, groceries must still be bought and utility bills need to be paid. You're certainly not required to tap both sources of retirement income immediately after you stop earning a work-based income. If you only need one or the other, only utilize one and let the other continue growing for at least a little while longer. But why not claim Social Security benefits first and let your retirement savings continue to grow in the interim? There's certainly a case to be made for this alternative. For instance, if health issues create a better-than-average chance of shortening your life span, you may be better served by collecting as much Social Security as you can while you can. In this same vein, when you initiate your Social Security benefits can potentially impact your spouse's Social Security income later in life. Conversely, if you've got a sizable stash of money in an ordinary (non-Roth) IRA or 401(k), taking more but smaller taxable distributions from these accounts by starting withdrawals at a relatively early age might reduce your total lifetime tax bill resulting from these distributions. Withdrawals from retirement accounts are also flexible, meaning you can take more, or less, as needed. That's not the case with Social Security. What you get is what you get, and with one time-limited exception, once you start collecting Social Security you don't have the choice of stopping. Unfortunately, the only way to know for sure which of these plans makes the most sense for you is by pulling out a pencil and paper and doing a side-by-side comparison. This will require a bit of data-gathering just to make sure you've got all the information you'll need to do the math. But it would be time well spent if you've feasibly got the option of only tapping one source or the other when starting your retirement. Consider the practicalities of working for more years That being said, if delaying Social Security benefits for as long as possible means you'll also need to work -- at least part time -- to make ends meet in the meantime, some strategic career planning may be in order. Namely, you'll want to make sure you're able to continue working past an age when many other people are calling it quits. And it's not just a matter of making sure your age doesn't translate into health-related reasons for leaving the workplace, although this is certainly something to consider. (For example, handling heavy equipment, tools, and materials can take a sizable toll on an older body. If the option to move to a more administrative role materializes, take it.) Later in your career also isn't a time to sacrifice job security for a chance to work at a start-up that might be out of business within a year, for instance. The point is, you want to give yourself the very best chance of continuing to work well past your earliest eligibility for Social Security benefits. Make as much money as you (reasonably) can for at least 35 years Finally, not only will holding off on the initiation of your Social Security benefits make your eventual payments bigger, but postponing these payments could also give you more time to pay more Social Security taxes that bolster your future benefit. Many people may not realize it, but when the Social Security Administration determines how much it owes you in retirement benefits, it looks at your 35 highest-earning (adjusted for inflation) years. Not working a total of 35 years doesn't mean you won't get anything -- the Social Security Administration simply credits you zero dollars' worth of income for every year less than 35 that you worked. This, of course, results in a smaller benefit. Even if you're not "maxing out" your taxable work-based income, though, something is better than nothing if you'd otherwise have fewer than 35 years' worth of taxable wages. But what if you've already worked a full 35 years? There may still be an upside to continuing to work. If you happen to be earning relatively more now than you did earlier in your career, these higher-earning years will replace any lower-earning ones when Social Security determines which of your work years are your 35 best in terms of taxable work-based wages. Of course, working for longer also allows you to tuck more away into a retirement savings account. Just be realistic. If you physically shouldn't continue to work or if you're miserable while you're working, don't do it. No amount of money is worth lowering your overall mental and physical well-being at any stage of your life. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Delaying Social Security Leads to Bigger Benefits Payments. 3 Ways to Help Make It Happen was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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6 hours ago
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Social Security Garnishment Began on July 24 for Potentially 1,000,000-Plus Beneficiaries -- Here's How You Can Legally Avoid or Reduce It
Key Points A number of changes have been made to Social Security since President Trump took office a little over six months ago. A 50% clawback rate on Social Security overpayments -- a fivefold increase from Joe Biden's presidency -- is now officially in place. Beneficiaries who've been overpaid have a trio of legal options available that can waive or reduce their Social Security repayment liability. The $23,760 Social Security bonus most retirees completely overlook › Next month will mark the 90th anniversary since the Social Security Act was signed into law. Its goal was to provide a financial floor for aged workers who were no longer able to provide for themselves. Nine decades later, an overwhelming majority of the 53 million retired workers who receive a monthly benefit from Social Security count on this income to make ends meet. In each of the last 24 years, national pollster Gallup has surveyed retirees to gauge how reliant they are on their Social Security income. In April, a combined 86% noted it was needed, in some capacity, to cover their expenses. For aging workers, along with workers with disabilities and survivor beneficiaries, nothing holds more importance than knowing how much they'll be receiving on a monthly basis from the Social Security Administration (SSA). But for potentially more than 1 million beneficiaries, their monthly Social Security check is now enduring a significant haircut. Donald Trump's administration aims to claw back Social Security overpayments Since President Donald Trump began his second nonconsecutive term a little over six months ago, a multitude of changes have been made to America's leading retirement program. Some of these changes include the end to paper checks by Sept. 30, 2025 (via a Trump executive order), as well as beefed-up personal identification measures for beneficiaries. But the biggest Social Security changes undertaken by the Trump administration have to do with the reinstatement/adjustment of two garnishments. For instance, the president's administration has suggested that, by "sometime this summer," garnishments of up to 15% may recommence for delinquent federal student loan borrowers who are receiving a Social Security benefit. However, clawing back benefits from those who've been overpaid by the SSA is now in full effect, as of July 24. According to the SSA's Office of the Inspector General, approximately $23 billion in Social Security overpayments remained uncollected at the end of fiscal 2023 (the federal government's fiscal year ends on Sept. 30). With President Trump making government inefficiency one of his primary focuses, the SSA is being tasked with collecting overpayments from nearly 2 million beneficiaries (as of the end of fiscal 2023), per Cox Media Group and KFF. During Joe Biden's presidency, the garnishment rate for overpayments was lowered to just 10%, which is well below the 100% clawback rate present during Barack Obama's presidency and Donald Trump's first term. In March 2025, the SSA announced plans to reintroduce the 100% garnishment rate, but ultimately halved it to 50% following public backlash. The SSA began sending out notices to those who've been overpaid on April 25, which provided these folks with a 90-day grace period to "request a lower rate of withholding, a reconsideration, or waiver." This 90-day grace period ended on July 24, which means at least some of these 1 million-plus beneficiaries are now seeing 50% of their monthly benefit check garnished to satisfy their overpayment. There are three ways to legally avoid or reduce a Social Security garnishment caused by overpayment In some instances, Social Security overpayments are entirely the fault of the SSA. In other cases, it could be the end result of a beneficiary failing to update their income. For example, non-blind workers with disabilities can earn up to $1,620 per month in 2025 without their Social Security disability benefits stopping. But if a worker generates more income than $1,620/month and fails to report it to the SSA, they'll be paid more than they're due. Knowing where the fault for the overpayment lies can have a significant impact on your ability to potentially avoid or reduce how much you'll have to pay back. The SSA offers three perfectly legal options for beneficiaries to satisfy their overpayment beyond just paying back the full amount immediately. The most desirable of the three options is getting the overpayment completely waived by the SSA. Form SSA-632BK ("Request for Waiver of Overpayment Recovery") is an option when the overpayment wasn't your fault and it would create a financial hardship to pay back the extra benefits you received. You'll likely need to supply documentation of your qualified expenses to verify your financial hardship. If approved by the SSA, your SSA-632BK request will completely waive any liability for your overpayment. The second completely legal option available to overpaid beneficiaries is to file Form SSA-561 ("Request for Reconsideration"). Some beneficiaries who take this route are doing so with the goal of getting their overpayment liability waived. You'll need to provide evidence to the SSA that you haven't been overpaid, and if the agency agrees, it'll waive your liability. SSA-561 is also an option in instances where beneficiaries admit they've been overpaid, but who simply don't agree with the amount the SSA is asking for in repayment. Once again, you'll have to provide evidence of the amount you believe you've been overpaid, and if the SSA agrees, it'll reduce your overpayment liability. The third legal option for overpaid beneficiaries is Form SSA-634 ("Request for Change in Overpayment Recovery Rate"). This is the best option for beneficiaries who freely admit they've been overpaid, but who would struggle with a financial hardship if 50% of their monthly Social Security income were garnished. Filing Form SSA-634 will require beneficiaries to provide documentation of their qualified expenses to establish a financial hardship. Though the SSA typically aims to collect overpayments within 12 months, the agency will, on occasion, extend repayments out to 60 months. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Social Security Garnishment Began on July 24 for Potentially 1,000,000-Plus Beneficiaries -- Here's How You Can Legally Avoid or Reduce It was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
