A Message During Challenging Times
I hope this message finds you and your loved ones safe and well. As you know, the recent and ongoing fires in Southern California have had a devastating impact on many homes and families. If you know someone who has been impacted by the fires, please don't hesitate to let me know. Whether it's assisting with insurance claims, discussing financial options, or simply being a resource during this challenging time, I'm here to help. I'm also happy to provide pro bono assistance to those navigating this catastrophe.
Unexpected events like these, whether a natural disaster, illness, the loss of a loved one, or a career change, can disrupt even the best-laid plans. My goal is to support you not just during prosperous times but also in navigating life's uncertainties. This serves as a reminder to keep me updated on any significant changes in your life. These critical moments call for careful planning to avoid costly mistakes. If we haven't already, I'd be happy to work with you to create or revisit a plan to ensure you're prepared for whatever may come.
News Alert! Social Security Windfall Elimination and Government Pension Offset Repealed!
Has your or your spouse's Social Security benefit been reduced because you receive a government pension? Great news! The recently signed Social Security Fairness Act repeals these two provisions. You will now receive the full benefits you earned through private-sector work or as the spouse of someone who did. This change could amount to thousands of dollars per year in additional Social Security benefits!
The government is currently determining how this will be implemented, so there's no action you need to take at this time. However, let me know once you see this change reflected in your benefits. If this applies to you, monitor your mail and your SSA.gov account for updates.
Tax Season Reminders
If you only have retirement accounts (IRA, Rollover IRA, Roth IRA, SEP IRA) and didn't make any withdrawals, you likely won't have taxable income and can skip the rest of this email. Yay!
If you made withdrawals from retirement accounts or have a non-retirement brokerage account (Individual, Joint, or Trust), please review the following.
It's time to start preparing for taxes to make the process easier. Kimberly and I will be sending out a letter to help you with details that may not appear on standard tax statements. In the past, you may have had to remember these details on your own, but now you'll receive a personalized letter for any of the following transactions in 2024 after transitioning to TerraFirma Wealth Partners:
- Qualified Charitable Distributions
- Charitable Distributions from Taxable Accounts
- Roth Conversions
- IRA or Roth IRA Contributions
- 60-Day Rollovers
Please note: We only have data for transactions after your transition to TerraFirma Wealth Partners. We're unable to access prior data but would be happy to help you research if applicable. Next year, we'll have all your data, making this process much simpler.
If you've given me a copy of your previous year's tax returns, we will also have a tax report for you as well. If you haven't yet, don't worry! Please send me a copy once you've completed the 2024 tax returns and I will provide the analysis for you. More information about this will come later.
Timeline: What to Expect This Year
1099-Consolidated Forms: These include 1099-DIV, 1099-B, 1099-INT, 1099-OID, and 1099-MISC. Forms will be released to your client portal in two phases:
- Phase 1: January 31 for most clients
- Phase 2: February 28 for clients with more complex portfolios
Correction Runs: Starting March 1, corrections will be processed bi-weekly as needed. Clients with Mutual Funds, REITs, REMIC securities, or WHFITs may experience income reclassification, resulting in amended forms that could impact tax filings and deadlines.
Helpful Tips for Preparation
- Client Portal Access: Verify your Altruist Client Portal login credentials to ensure seamless access to your tax documents once released. Tax forms can be found under Documents in the menu at the top-right corner of your portal. Use the Tax Documents Type filter to locate forms easily.
- Update Contact Information: Ensure your email and mailing addresses are current by January 20. Updates can be made in Settings > Accounts > Personal Details within the Client Portal or by notifying us directly. Note: Updates must be made for each account individually.
- TurboTax Integration: If you use TurboTax, you can import your Consolidated 1099 information using the docID provided on your tax forms.
- Email Notifications: Tax documents for electronic delivery will be sent from AltruistFinancialLLC@investordocuments.com. Please whitelist this address to avoid missing important notifications.
Remember, we're always here to help, whether it's managing taxes or navigating life-changing events. Please don't hesitate to reach out if you need assistance.