When you die, you leave behind your estate. Your estate consists of your assets — all of your money, real estate, and worldly belongings. Your estate also includes your debts, expenses, and unpaid taxes. After you die, somebody must take charge of your estate and settle your affairs. This person will take your estate through probate, a court-supervised process that winds up your financial affairs after your death.
As a business owner, you’re going to have to decide when will be the right time to step out of the family business and how you’ll do it. There are many estate planning tools you can use to transfer your business. Selecting the right one will depend on whether you plan to retire from the business or keep it until you die.
Your gross estate for federal estate tax purposes includes:
A big reason many Americans are foregoing college is the cost. For the 2022-2023 year (most recent data available), the average one-year cost for tuition, fees, room, and board was $23,250 for in-state students at a four-year public college, $40,550 for out-of-state students, and $53,430 at a four-year private college. But many schools, especially “elite” private colleges, cost substantially more, with some over the $80,000 mark.
In early 2022, the IRS issued proposed regulations regarding required minimum distributions (RMDs) to reflect changes made by the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The IRS has held off on releasing final regulations so that it can address additional changes to RMDs made by the SECURE 2.0 Act of 2022, which was passed in late 2022. In the meantime, the IRS has issued interim RMD relief and guidance for 2023. Final RMD regulations, when issued, will not apply before 2024.
In December 2022, Congress passed the SECURE 2.0 Act. It introduced two new rules relating to 529 plans and student debt that will take effect in 2024. The first provision allows for tax- and penalty-free rollovers from a 529 plan to a Roth IRA. The second provision allows student loan payments made by employees to qualify for employer retirement matching contributions. The overall goal is to help young adults start saving for retirement.
Here is a brief look at some of the tax perks, rule changes, and incentives included in the legislation.
The SECURE 2.0 Act, passed as part of an omnibus spending bill in December 2022, added new exceptions to the 10% federal income tax penalty for early withdrawals from tax-advantaged retirement accounts.
SESLOC is pleased to announce that we have received two prestigious awards this year. The recognition we have earned serves as a testament to our commitment to excellence and dedication to providing exceptional financial services to our valued member-owners. We are proud to share this achievement with you, as it highlights our ongoing efforts to deliver top-tier products and services that meet and exceed the financial needs of our community.
SESLOC is pleased to announce that as of November 1, 2024, there has been a reduction in overdraft fees. This change is part of our commitment to providing cost-effective solutions for our membership and community. These savings will be extended to members but will have the greatest impact on those facing financial challenges, who need a break from fees to begin saving and building healthy financial habits.
SESLOC’s 2024 Shred Day events break nine years of records by serving 746 visitors and shredding nearly 42,000 pounds of paper! Thanks to our members who attended the events at our San Luis Obispo, Atascadero, Arroyo Grande, Paso Robles and Santa Maria branches, plus our new Lompoc event location. In total, we recycled 133 total bins with about 21 tons of shredded paper— saving 357 trees, 147,000 gallons of water, 63 cubic yards of landfill space, and 84,000 kilowatts of electricity!
On Friday, October 11, SESLOC returned to Pacific Beach High School in San Luis Obispo for a second year to engage 55 students in the Bite of Reality simulation. This hands-on event immerses students in a realistic budgeting app, providing them with valuable insights into managing finances. Through interactive scenarios, participants learn to navigate the distinction between needs and wants, equipping them with essential budgeting skills for real life.
We’re partnering with News Channel 12 to honor nonprofit volunteers who make our community thrive. Each month, we’re choosing a different nonprofit and asking them to select a valuable volunteer to receive the SESLOC Cares for Community Award. We’re thrilled to introduce Len Hoskins, from the DANA Adobe.
