With the change in tax code a few years ago many affluent individuals and families who used to itemize now qualify for the standard deduction instead which can impact the deductibility of charitable gifts Throughout our history Mesirow has had a strong philanthropic culture so charitable giving is a wealth planning area in which we are very experienced and eager to help provide some new ideas…, Here are two strategies to consider, Strategy 1 Donor Advised Fund, One approach taxpayers can consider is to strategically “lump together” several years’ of charitable donations into a single tax year by making a donation to a Donor Advised Fund (DAF A DAF is a vehicle for charitable giving that makes it easy for donors to dedicate funds to support their favorite nonprofit organization It allows the donor to make a charitable contribution receive an immediate…, Strategy 2 IRA Qualified Charitable Distributions (QCDs, Charitable-minded investors can take advantage of qualified charitable distributions (QCDs where some or all their distribution is donated directly to a charity In these situations the amount donated can be used to satisfy the annual required minimum distribution (RMD requirement but is excluded from taxable income This approach is limited to $100000 per year  In situations where the taxpayer is…, Published  February 2024, Sources “Timing Tax Savings With Deduction Lumping And Charitable Clumping” Nerds Eye View Blog wwwkitcescom January 31 2018 https//wwwirsgov https//wwwirsgov/charities-non-profits/charitable-organizations/donor-advised-funds “Rules and Requirements For Doing a Qualified Charitable Distribution (QCD From an IRA” Nerds Eye View Blog wwwkitcescom June 15 2016

Tess is an Analyst in Mesirow CTL and Structured Debt Products She is responsible for supporting the team in research and analysis Prior to joining Mesirow full time in 2022 Tess interned at Mesirow through their Capital Markets Rotational Summer Internship and spent a second summer interning with the Credit Tenant Lease and Structured Debt Products Team Tess earned a Bachelor of Arts in…

If you’re in your early 60s retirement may be approaching fast You’re not alone if you feel compelled to save more during this critical period , The SECURE 20 Act which was signed into law in late 2022 introduced several new retirement plan provisions One of these included the “Super Catch-Up” contribution If you’re eligible this may be the opportunity to boost your retirement savings and add thousands to your nest egg  Here’s what you need to know , New rules make saving easier, If there is one advantage to getting older it’s the ability to save more to your qualified retirement plans The annual contribution limit for employees who take part in 401(k 403(b governmental 457(b plans and the federal government’s Thrift Savings Plan increased to $23500 in 2025 up a whopping $500 from the previous year Except for non-governmental 457(b plans the IRS allows those age 50 or…, Clarifying the nuances regarding the new “super catch-up” contributions for 2025, What plans are being affected, Governmental 457(b 401(k and 403(b and SIMPLE plans Not all plans offer catch-up contributions Check with your plan administrator to see if yours does IRAs are not eligible, Does this apply to Individual 401(k plans, Yes the super catch-up contribution is available for solo plans but not all solo plans offer it so check the details, If I am 59 and turn 60 during 2025 can I take advantage of this, Yes anyone that turns 60 to age 63 in 2025 is eligible, Does the company match impact the super catch-up limit, No Employer contributions including company match and profit-sharing contributions are considered separate , Does this apply to non-governmental 457(b plans , No only governmental 457(b plans which are generally offered by certain state and local governments and tax-exempt organizations , What happens if I turn 64 during the calendar year,  , You will revert to the age 50 catch-up contribution limit in effect for that year ($7500 for 2025 assuming your plan offers catch-up contributions , If I’m eligible can I add $7500 for the over age 50 catch up plus the $11250 super catch up, No you don’t get to do both, Can I take advantage if I add to my Roth 401(k, Yes you can Whether you should or not is another topic, What are the annual contribution limits in 2025 , See below Important note the limits are different for the less-common SIMPLE plans Defined contribution plans (excluding simple plans, Age, 2025 annual participant deferral limit, (assuming no change from 2024 49 and under $23000 50 to 59 $30500 ($23000 plus $7500 catch-up 60 to 63 $34250 ($23000 plus $11250 catch-up 64 and older $30500 ($23000 plus $7500 catch-up   simple plans, Age, 2025 annual participant deferral limit, (assuming no change from 2024 49 and under $16000 50 to 59 $19500 ($16000 plus $3500 catch-up 60 to 63 $21250 ($16000 plus $5250 catch-up 64 and older $19500 ($16000 plus $3500 catch-up,  , Is there anything I need to do, Yes you may need to increase your contributions to hit the maximum Check to make sure   Since this opportunity only lasts up to four years (until you reach age 64 we recommend you talk to your Mesirow Wealth Advisor to see how you can take advantage of super-catch up contributions as soon as you can  Published March 2025

Created in 1965 Medicare is a federal health insurance program designed for people ages 65 and over Regardless of income medical history or health status these individuals are covered, In the programs history its expanded in various ways such as the inclusion of coverage for prescription drug plans and private Medicare Advantage plans that offers a variety of needs depending on budget The cost can change every year — in 2025 most people with Medicare saw a 25%cost-of-living-adjustment (COLA in their Social Security benefits¹, What does Medicare provide, Most Americans aged 65 or older rely upon Medicare for a large portion of their medical care Coverage is composed of four parts Part A Hospital Insurance Part B Medical Insurance Part C Medicare Supplement (Medicare Advantage Plans Part D Prescription Drug Coverage   Medicare Part A Medicare Part A covers the costs associated with a stay in a hospital or skilled nursing facility as well as care…, How much does Medicare cost, Most seniors have their Part B premiums deducted automatically from their monthly Social Security retirement income (Medicare premiums are billed directly to beneficiaries that do not receive Social Security retirement benefits For most of Medicare enrollees the 2025 monthly premium will be $185 However taxpayers with adjusted gross income greater than $106000 (single filers or $212000 (married…, Beneficiaries who file individual tax returns with income, Beneficiaries who file joint tax returns with income, Total monthly premium amount, Less than or equal to $106000 Less than or equal to $212000, $18500, Greater than $106000 and less than or equal to $133000 Greater than $212000 and less than or equal to $266000, $25900 , Greater than $133000 and less than or equal to $167000 Greater than $266000 and less than or equal to $334000, $37000 , Greater than $167000 and less than or equal to $200000 Greater than $334000 and less than or equal to $400000, $48090 , Greater than $200000 and less than $500000 Greater than $400000 and less than $750000, $59190 , Greater than or equal to $500000 Greater than or equal to $750000, $62890, In addition to earned income up to 85% of Social Security retirement income pension payments and most investment income (including tax-exempt bond interest is included in adjusted gross income This also includes IRA withdrawals and Roth IRA conversions Medicare premiums are based upon the most recent tax return on file with the IRS — therefore there is a one-year lag to determine the Part B…, What can you do if your income has changed, Social Security lists five factors that could result in a new decision about the required Medicare Part B premium You married divorced or became widowed You or your spouse stopped working or reduced your work hours You or your spouse lost income-producing property because of a disaster or other event beyond your control You or your spouse experienced a scheduled cessation termination or…, Still working at age 65, If you are still working when you turn 65 you should discuss your Medicare enrollment options with your Mesirow wealth advisor Generally workers do enroll in Medicare Part A because it is free but it is important to understand whether your current employer coverage will change in any way if you enroll in Medicare Part A However if you are enrolled in your employer’s High Deductible Plan with a…, Summary, Medicare can be a complex program to navigate with a multitude of considerations depending on your nuanced situation This is merely an overview We invite you to reach out to your Mesirow Wealth Advisor so that we can help you understand your options and connect you with professionals with additional expertise, Published January 2025, 1  https//wwwaarporg/retirement/social-security/info-2023/cola-benefits-and-medicare-premiums-risehtml   https//wwwmesirowcom/sites/default/files/PDFs/Wealth/2024-Contribution-Limitspdf Source wwwmedicaregov

by Keith Gustafson CFA and Christopher M ONeill PhD CFA CFP ® FRM ® ChFC ®, Abstract, In this paper we review evidence of retirement under-saving and potential solutions as well as empirical evidence regarding investor reaction to negative market returns  We present new corroborating evidence from fund flows around the recent volatile market events in 2020 that indicates a rising loss aversion just as asset levels become significant with investors approaching retirement We surmise…

by Keith Gustafson CFA and Christopher M ONeill PhD CFA CFP ® FRM ® ChFC ®, Proactive plan design elements such as auto-enrollment and auto-escalation represent industry best practice and have become the norm among plan sponsors Their presence results in better participant outcomes particularly when used in an opt-out fashion The practice of re-enrollment is a simple extension of this general framework that similarly represents consensus industry best practice,   Introduction Target Date Funds (TDFs have been utilized since the Pension Protection Act (PPA of 2006 in a QDIA setting as a means of providing retirement savers with a one-stop solution suited to their age and in some cases risk tolerance level According to a recent survey 91% of plans offer a TDF option 1 This framework with TDFs is meant to provide a comprehensive but generalized asset mix…