Center Clients Donate over $1.3 Million in Tax-Savvy QCD’s in 2024!

Contributed by: Lauren Adams, CFA®, CFP®

We are proud to announce that The Center assisted clients in donating over $1,350,000 to charities using the Qualified Charitable Distribution (QCD) strategy in 2024!

The QCD strategy allows clients with assets in an IRA account and who are over age 70.5 to donate funds directly from their retirement account to a charity. Giving directly from an IRA to charity results in those dollar amounts not being included in taxable income for that year. That usually results in a lower tax bill for our clients and can also have positive downstream effects like lowering the amount they may pay for Medicare premiums and the portion of Social Security that is taxable to them, depending on their situation and income level. For those 73 or older, QCDs also count towards the distributions they need to take each year for their Required Minimum Distribution.

Now, there are some caveats for QCDs — you need to be at least 70.5. Also, the charity has to be a 501(c)(3). There are limits on how much you can give each year through this method, but that number is actually relatively high at $108,000 per person per year right now.

The Center’s mission is to improve lives through financial planning done right, and we are so proud to be able to help clients make such a positive impact on the world (bonus points for it being in a tax-savvy manner!).

Did you know that QCDs are only one of many charitable giving strategies that our team helps clients deploy? Watch this video to learn more about ways our clients make their charitable dollars stretch further for the causes they care about while potentially lowering their tax burden.

As always, we recommend you work with your tax preparer to understand how these strategies affect your individual situation. If you want to explore these strategies and more, contact your Center financial planner today!

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Lauren Adams, CFA®, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

Three Financial Planning To-Dos for New Parents

Contributed by: Lauren Adams, CFA®, CFP®

If you’ve recently become a new parent, maybe your first thoughts when meeting your new child were like mine: feelings of overwhelming joy and gratitude, but also immense responsibility for this new life. Not only do you need to feed, clothe, and shelter this child, but you are also responsible for providing for their health, mental, and financial well-being for the next 18+ years. Talk about a commitment!

Hopefully, you have some trusted people in your life to help you with the health and mental well-being part, but we want you to know we’re here to help you with the financial part of the equation. In addition to stocking up on diapers and assembling the crib, we want you to add three very important to-dos to your New Parent Checklist:

1. Review Your Life Insurance Coverage

First, ensure you have enough life insurance to care for your loved ones if something happens to you. Many of us are fortunate to receive some life insurance benefits from our employer through what is called “group term life insurance.” Often, this is equal to a certain dollar amount (for instance, one times your annual salary) and is available at little to no cost to you. The plus side of group term life insurance is that it is cost-effective and usually doesn’t require medical underwriting. The downside of group term life insurance is that it typically does not provide enough coverage that your family would need if you were gone, and it usually does not stay with you if you were to leave your employer.

That is why we frequently recommend that our clients consider getting their own term life insurance through an independent insurance agent. In most cases, term life insurance (as opposed to other kinds of permanent insurance) that provides financial coverage for a certain period of time is the best way to get the most death benefit for the least amount of premium dollars. The length of that term and the dollar amount of coverage can be dictated by financial needs as well as what is important to each client. For instance, some clients want to be able to pay off a mortgage, fund college costs, allow their spouse to hire childcare, and so on. Depending on the dollar amount, you may be required to go through medical underwriting to be approved for the death benefit you want. Your financial advisor can help you determine what time and dollar amount is right for you.

2. Meet with an Estate Planning Attorney

Everyone should have an estate plan in place, which is especially important for parents. An estate plan – that usually includes a Last Will & Testament, Durable Power of Attorney for Finances, Durable Power of Attorney for Healthcare/Advanced Medical Directive, and sometimes a Revocable Living Trust – can make sure all your wishes are correctly carried out in the event of your incapacity or death. This could include everything from who you want to make healthcare decisions on your behalf to at what ages your children should receive any inheritances you leave them. One of the most important things you specify in an estate plan is the guardian for minor children if something happens to you.

When choosing a guardian, parents should discuss who is the best person to care for their children’s needs. The guardian is often a relative or close friend near the same age. The guardian does not have to be the person who manages investments on the children’s behalf (in that case, parents may want to name a separate conservator—someone who handles money on behalf of their minor children). Many times, the guardian and conservator are the same people, but there are situations when the duties are best split (usually depending on the skills and strengths of the friends or family that they choose). In that case, the guardian and conservator work together to determine an appropriate monthly stipend for the guardian to care for their children.

3. Review Your Beneficiaries

Meeting with an estate planning attorney and drafting documents is only one piece of the puzzle. You’d be surprised to learn how often we meet with married couples, help them review their financial statements, and discover that their parents are still named as the primary beneficiaries on their accounts. It is surprising but understandable; between checking and savings accounts, workplace retirement accounts like 401(k)s, Individual Retirement Accounts, and a myriad of other investment account options, there is a lot to keep track of!

When this happens, beneficiaries could be required to go through probate court to obtain inheritances, resulting in additional expenses to settle the estate. Once a client is deceased, their account could be frozen, which delays accessing funds for family members who might rely on the assets (namely, spouses and minor children). Because of this, we regularly help clients keep track of their beneficiaries and account titling.

Now, I know life insurance, estate planning, and beneficiary designations are not the most exciting things to think about after you bring your new bundle of joy home. But knowing that you have a plan in place to care for your child regardless of what happens to you can be one of the greatest gifts you give them. Reach out to discuss your personal situation and let us help you through this process!

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Lauren Adams, CFA®, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Center for Financial Planning, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

Three Financial Planning Questions for Small Business Owners

Contributed by: Lauren Adams, CFA®, CFP®

One of the most rewarding types of clients we have the honor of working with are business owners. These folks have built their companies from the ground up across a wide variety of industries or worked their way up through the ranks to now serve at their company’s helm. They are masters of their fields of expertise and savvy strategists. However, they are often frustrated when their expertise in their domain doesn’t translate into know-how to manage their finances. This is why many choose to outsource the management of their finances to professionals. If you are a business owner devoted to your business and perhaps putting your own planning on the back burner, we’ve put together a few questions for you to consider.  

1. Are you optimizing your retirement savings?

Two of the most popular retirement savings vehicles for small business owners are the SEP (Simplified Employee Pension) IRA and the solo 401(k).

SEP IRAs are one of the most common retirement accounts for self-employed individuals and small business owners; they are popular for their simplicity and flexibility. They are similar to traditional IRAs in many ways but with some twists. With a SEP IRA, you can most likely contribute much more than a traditional IRA. Depending on your business entity structure, a business owner’s limit is generally the lesser of 25% of compensation (up to $69,000 in 2024). These accounts tend to be ideal for folks who have very few (or zero) other employees because owners must contribute proportional amounts for each eligible employee.

SEPs also offer a lot of flexibility: you can freely roll over the account into a Traditional IRA in the future, and you can make contributions until your taxes are due the following year. Some limitations to consider: you don’t have the ability to take a loan from your SEP IRA (like you can from a 401(k)), there is no Roth contribution option with SEPs (contributions will always be tax deductible up front and withdrawals will always be taxed when taken out), and typically the self-employed person would need to earn a lot to be able to max out their annual contribution limit ($300k+ in 2024).

Solo 401(k)s are a simplified version of the popular corporate 401(k) savings plan. They might be a fit for owner-only businesses whose only employees are the owner or the owner and spouse. With solo 401(k)s, the owner gets to decide how much to contribute as the employee and the employer. Contributions can be pre-tax or Roth, and 401(k)s do allow for tax-free loans (if the proper procedure is followed). There are some nuances to the employee and employer contribution limits, but solo 401(k)s have the same high contribution rate as SEP IRAs, and typically, you can get there faster (with an overall lower level of total compensation) than the SEP. A downside of solo 401(k)s is that they have some added cost and complexity. Plan documents need to be established, and the IRS requires owners to file a Form 5500 if it has $250,000 or more in assets at the end of the year.

Luckily, these are both great savings options for business owners to build long-term retirement savings and diversify the wealth they are building inside their businesses. We have experience assisting our business owner clients with both types of plans.

2. Are you taking advantage of the QBI deduction?

The qualified business income (QBI) deduction is a potential 20% deduction for self-employed individuals and owners of pass-through entities like LLCs, partnerships, and S corps that was created by the 2017 Tax Cuts and Jobs Act. There is a threshold and phaseout of this deduction if you make too much money, and the rules and calculations around it are complex. We won’t get into the nitty-gritty here, but we want to ensure it is on our business owner clients’ radar. In our experience, many business owners are not aware of this deduction, or they may be paying themselves too high a salary than legally necessary (thus increasing their FICA taxes and limiting their profits and the amount of the potential deduction they are eligible for).

Also, this benefit is scheduled to sunset on December 31, 2025 (unless Congress votes to extend it). So you want to make sure you’re making the most of it while you can, as it can translate into potentially large tax savings under the right circumstances. Don’t wait – call your CPA today and discuss ways you can maximize this benefit while it is still around.

3. Are you planning for the future?

As business owners ourselves, we understand how easy it is to get caught up in working “in” the business instead of “on” the business. That’s why we’ve found helpful tools like Gino Wickman’s Traction and the EOS Resources (https://www.eosworldwide.com/). Dedicating time to work on the business itself can pay dividends in your own quality of life and the equity value of the business itself.

If you are contemplating a sale in the future, don’t assume that you need to wait until after you cash out to call a financial advisor. We can employ many tactics leading up to your business sale (such as tax-loss harvesting strategies like direct indexing or tax-advantaged charitable giving) to help mitigate the tax bite of this watershed moment in your life.  

We hope these questions have helped get you thinking about some opportunities you might be missing and showcase how important prioritizing your own financial planning can be. Reach out to talk through your personal situation together. We’d love to help!

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Lauren Adams, CFA®, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

The Center Ranked #1 Award-Winning Workplace

Contributed by: Lauren Adams, CFA®, CFP®

At The Center, we focus heavily on workplace culture to make our firm a wonderful place to work. We think happy employees translate into a better experience for our clients, and an award-winning workplace also allows us to attract top talent to our firm.

In November, InvestmentNews named us the #1 Best Place to Work for Financial Advisors in the USA for companies our size. This marks the seventh consecutive year we've won this national award and the first time we've taken home the top spot.

Then, in August, Crain's Detroit Business recognized us as a Best Place to Work in Southeast Michigan. This marks the 8th consecutive year that we have been named by Crain's as a "Best Place to Work," and the first year we've been recognized as the #1 employer in southeastern Michigan for companies our size (and #4 across all companies regardless of size). Our team was thrilled to accept our award in person at the celebration luncheon. Also, Partner Lauren Adams was invited to speak on a panel of winners, discussing how treating employees right is a win/win/win for our clients, team, and firm.

 The Center's mission is to strive to improve lives through financial planning done right. It is our joy to do this work each day to improve the lives of our clients and our team.

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

Any opinions are those of Lauren Adams, CFA®, CFP® and not necessarily those of Raymond James.

Investment News “2024 Best Places to Work for Financial Advisors”. The Best Places to Work for Financial Advisers program is a national program managed by Best Companies Group. The survey and recognition program are dedicated to identifying and recognizing the best employers in the financial advice/wealth management industry. The final list is based on the following criteria: must be a registered investment adviser (RIA), affiliated with an independent broker-dealer (IBD), or a hybrid doing business through an RIA and must be in business for a minimum of one year and must have a minimum of 15 full-time/part-time employees. The assessment process is compiled in a two-part process based on the findings of the employer benefits & policies questionnaire and the employee engagement & satisfaction survey. The results are analyzed and categorized according to 8 Core Focus Areas: Leadership and Planning, Corporate Culture and Communications, Role Satisfaction, Work Environment, Relationship with Supervisor, Training, Development and Resources, Pay and Benefits and Overall Engagement. Best Companies Group will survey up to 400 randomly selected employees in a company depending on company size. The two data sets are combined and analyzed to determine the rankings. A total of 75 employers won . The ranking is based on fiscal year 2023 and was released on 02/28/2024. The award is not representative of any one client's experience, is not an endorsement, and is not indicative of an advisor's future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award. Investment News and/or Best Companies Group is not affiliated with Raymond James.

Crain's 2024 Detroit Business Best Places to Work in Southeast Michigan, developed by Best Companies Group, is based on evaluating employee surveys and the organizations benefits package. To be considered, the organization must: be a publicly or privately held business, be a for-profit, not-for-profit business or government entity, have a facility in Southeast Michigan, have at least 15 full or part-time employees working in Southeast Michigan, be in business for a minimum of one year, and pay a fee to be considered. 93 of the self-nominated applicants won the award. This ranking was released on 8/22/2024, This recognition is neither an evaluation of services offered, nor a ranking of the Center for Financial Planning associates as investment adviser representatives. This award is not representative of any one client's experience, is not an endorsement, and is not indicative of an advisor's past or future performance. Crain's Detroit Business and/or Best Companies Group is not affiliated with Raymond James.

Center Clients Donate over $1 Million in Tax-Savvy QCD Strategy in 2023

Contributed by: Lauren Adams, CFA®, CFP®

We are proud to announce that The Center assisted clients in donating over $1,000,000 to charities using the Qualified Charitable Distribution (QCD) strategy in 2023!

The QCD strategy allows clients with assets in an IRA account and who are over age 70.5 to donate funds directly from their retirement account to a charity. Giving directly from an IRA to charity results in those dollar amounts not being included as taxable income for that year. That usually results in a lower tax bill for clients and can have positive downstream effects like lowering the amount they may pay for Medicare premiums and the portion of Social Security that is taxable to them, depending on their situation and income level. For those 73 or older, QCDs also count towards the distributions they need to take each year for their Required Minimum Distribution.

Now, there are some caveats for QCDs – for example, you need to be at least 70.5, and the charity must be a 501c3. There are also limits on how much you can give each year through this method, but that number is relatively high at $105,000 per person per year currently.

The Center’s mission is to improve lives through financial planning done right, and we are proud to be able to help clients make such a positive impact on the world (bonus points for it being in a tax-savvy manner!). 

Did you know that QCDs are only one of many charitable giving strategies our team helps clients deploy? Check out this video to learn more about ways our clients make their charitable dollars stretch further for the causes they care about while also potentially lowering their tax burden. 

As always, we recommend that you work with your tax preparer to understand how these strategies can affect your situation. If you want to explore these strategies and more, contact your Center financial planner today! 

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Lauren Adams, CFA®, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

Important Information for Tax Season 2022

Contributed by: Lauren Adams, CFA®, CFP®

As we prepare for tax season, we want to keep you apprised of when you can expect to receive your tax documentation from Raymond James.

2022 Form 1099 Mailing Schedule

• January 31 – Mailing of Form 1099-Q and Retirement Tax Packages.

• February 15 – Mailing of original Form 1099s.

• February 28 – Begin mailing delayed and amended Form 1099s.

• March 15 – Final mailing of any remaining delayed original Form 1099s.

Additional Important Information

Delayed Form 1099s

In an effort to capture delayed data on original Form 1099s, the IRS allows custodians (including Raymond James) to extend the mailing date until March 15, 2023, for clients who hold particular investments or who have had specific taxable events occur. Examples of delayed information include:

• Income reallocation related to mutual funds, real estate investment, unit investment, grantor and royalty trusts, as well as holding company depositary receipts.

• Processing of original issue discount and mortgage-backed bonds.

• Expected cost basis adjustments including, but not limited to, accounts holding certain types of fixed income securities and options.

If you do have a delayed Form 1099, we may be able to generate a preliminary statement for you for informational purposes only, as the form is subject to change.

Amended Form 1099s

Even after delaying your Form 1099, please be aware that adjustments to your Form 1099 are still possible. Raymond James is required by the IRS to produce an amended Form 1099 if notice of such an adjustment is received after the original Form 1099 has been produced. There is no cutoff or deadline for amended Form 1099 statements. The following are some examples of reasons for amended Form 1099s:

• Income reallocation.

• Adjustments to cost basis (due to the Economic Stabilization Act of 2008).

• Changes made by mutual fund companies related to foreign withholding.

• Tax-exempt payments subject to alternative minimum tax.

• Any portion of distributions derived from U.S. Treasury obligations.

What Can You Do?

You should consider talking to your tax professional about whether it makes sense to file an extension with the IRS to give you additional time to file your tax return, particularly if you held any of the aforementioned securities during 2022.

If you receive an amended Form 1099 after you have already filed your tax return, you should consult with your tax professional about the requirements to re-file based on your individual tax circumstances.

You can find additional information here.

And Don’t Forget…

As you complete your taxes for this year, a copy of your tax return is one of the most powerful financial planning information tools we have. Whenever possible, we request that you send a copy of your return to your financial planner, associate financial planner, or client service associate upon filing. Thank you for your assistance in providing this information, which enhances our services to you.

We hope you find this additional information helpful. Please call us if you have any questions or concerns about the upcoming tax season.

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.

Three Tax-Savvy Charitable Giving Strategies

Contributed by: Lauren Adams, CFA®, CFP®

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Lauren Adams, CFA®, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

What’s the Social Security Spousal Benefit?

Contributed by: Lauren Adams, CFA®, CFP®

At The Center, having a Social Security filing strategy is an important part of the retirement planning process. For couples where one of the spouses did not work outside of the home, many are surprised to find out that their projected Social Security benefit is much larger than they would have expected. 

This is usually due to the Social Security Spousal Benefit – a benefit that an individual may be entitled to based on the earnings history of their spouse. Here is the high-level overview of this benefit:

Who: Available to those who have been married at least one year and are 62 years or older.

What: The benefit amount can be up to 50% of the working spouse’s Primary Insurance Amount at Full Retirement Age (FRA). The spousal benefit only kicks in if this benefit is higher than the receiving spouse’s own retirement benefit.

When: That depends! The working spouse needs to have filed for the spouse to claim this benefit. If the receiving spouse claims before their own FRA, then the spousal benefit is permanently reduced (just like the standard benefit). But unlike the standard benefit, there are no delayed retirement credits that increase the spousal benefit after the receiving spouse’s FRA. This complicates claiming decisions for couples and is why working with a financial advisor - who can take all the different factors related to each couple’s situation into account - is especially important.

Where: You can apply for benefits, including spousal benefits, online at https://www.ssa.gov. 

Why: The spousal benefit originated earlier in the 20th century when the typical family structure often saw only one individual working outside the home and aimed to provide some level of financial security for the non-working spouse. 

Note that the rules above are different if the spouse is caring for a qualifying child or has been divorced or widowed. Contact us to see how we can help maximize your retirement benefits based on your individual situation.

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. Any opinions are those of Lauren Adams, CFA®, CFP® and not necessarily those of Raymond James.

Important Information for Tax Season 2021

Contributed by: Lauren Adams, CFA®, CFP®

As we prepare for tax season, we want to keep you apprised of when you can expect to receive your tax documentation from Raymond James.

2021 Form 1099 mailing schedule

• January 31 – Mailing of Form 1099-Q and Retirement Tax Packages

• February 15 – Mailing of original Form 1099s

• February 28 – Begin mailing delayed and amended Form 1099s

• March 15 – Final mailing of any remaining delayed original Form 1099s

Additional important information

Delayed Form 1099s

In an effort to capture delayed data on original Form 1099s, the IRS allows custodians (including Raymond James) to extend the mailing date until March 15, 2022, for clients who hold particular investments or who have had specific taxable events occur. Examples of delayed information include:

• Income reallocation related to mutual funds, real estate investment, unit investment, grantor and royalty trusts, as well as holding company depositary receipts.

• Processing of original issue discount and mortgage-backed bonds.

• Expected cost basis adjustments including, but not limited to, accounts holding certain types of fixed income securities and options.

If you do have a delayed Form 1099, we may be able to generate a preliminary statement for you for informational purposes only, as the form is subject to change.

Amended Form 1099s

Even after delaying your Form 1099, please be aware that adjustments to your Form 1099 are still possible. Raymond James is required by the IRS to produce an amended Form 1099 if notice of such an adjustment is received after the original Form 1099 has been produced. There is no cutoff or deadline for amended Form 1099 statements. The following are some examples of reasons for amended Form 1099s:

• Income reallocation

• Adjustments to cost basis (due to the Economic Stabilization Act of 2008)

• Changes made by mutual fund companies related to foreign withholding

• Tax-exempt payments subject to alternative minimum tax

• Any portion of distributions derived from U.S. Treasury obligations

What can you do?

You should consider talking to your tax professional about whether it makes sense to file an extension with the IRS to give you additional time to file your tax return, particularly if you held any of the aforementioned securities during 2021.

If you receive an amended Form 1099 after you have already filed your tax return, you should consult with your tax professional about the requirements to re-file based on your individual tax circumstances.

You can find additional information here.

Special note for IRAs in 2021

Raymond James Trust Company of New Hampshire (RJTCNH) succeeded Raymond James & Associates, Inc. (RJA) as custodian of IRAs, effective September 7, 2021. Accounts that had reportable activity before and after the Raymond James custodianship change will be receiving two 2021 tax packages. The second package is not a duplicate of the first package.

• The first package contains reportable activity occurring from January 1, 2021 – September 3, 2021 under the RJA custodianship.

• The second package will contain reportable activity occurring from September 7, 2021 – December 31, 2021 under the RJTCNH custodianship.

Both tax packages contain a summary of assets page detailing the total of each asset at year-end. However, the total value of these assets will only appear on the RJTCNH package as it reflects the Fair Market Value that will be reported by NJTCNH to the IRS for your account. Please do not assume the second package is a duplicate of this package. The contribution and/or distribution summaries will be different as well as Forms 1099-R and/or 5498. All forms must be used when completing the 2021 tax return.

And don’t forget…

As you complete your taxes for this year, a copy of your tax return is one of the most powerful financial planning information tools we have. Whenever possible, we request that you send a copy of your return to your financial planner, associate financial planner, or client service associate upon filing. Thank you for your assistance in providing this information, which enhances our services to you.

We hope you find this additional information helpful. Please call us if you have any questions or concerns about the upcoming tax season.

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.

Important Information for Tax Season 2020

Contributed by: Lauren Adams, CFA®, CFP®

As we prepare for tax season, we want to keep you apprised of when you can expect to receive your tax documentation from Raymond James.

2020 Form 1099 mailing schedule

• January 31 – Mailing of Form 1099-Q and Retirement Tax Packages

• February 15 – Mailing of original Form 1099s

• February 28 – Begin mailing delayed and amended Form 1099s

• March 15 – Final mailing of any remaining delayed original Form 1099s

Additional important information

Delayed Form 1099s

In an effort to capture delayed data on original Form 1099s, the IRS allows custodians (including Raymond James) to extend the mailing date until March 15, 2021, for clients who hold particular investments or who have had specific taxable events occur. Examples of delayed information include:

• Income reallocation related to mutual funds, real estate investment, unit investment, grantor and royalty trusts, as well as holding company depositary receipts

• Processing of original issue discount and mortgage-backed bonds

• Expected cost basis adjustments including, but not limited to, accounts holding certain types of fixed income securities and options

If you do have a delayed Form 1099, we may be able to generate a preliminary statement for you for informational purposes only, as the form is subject to change.

Amended Form 1099s

Even after delaying your Form 1099, please be aware that adjustments to your Form 1099 are still possible. Raymond James is required by the IRS to produce an amended Form 1099 if notice of such an adjustment is received after the original Form 1099 has been produced. There is no cutoff or deadline for amended Form 1099 statements. The following are some examples of reasons for amended Form 1099s:

• Income reallocation

• Adjustments to cost basis (due to the Economic Stabilization Act of 2008)

• Changes made by mutual fund companies related to foreign withholding

• Tax-exempt payments subject to alternative minimum tax

• Any portion of distributions derived from U.S. Treasury obligations

What can you do?

You should consider talking to your tax professional about whether it makes sense to file an extension with the IRS to give you additional time to file your tax return, particularly if you held any of the aforementioned securities during 2020.

If you receive an amended Form 1099 after you have already filed your tax return, you should consult with your tax professional about the requirements to re-file based on your individual tax circumstances.

You can find additional information here.

As you complete your taxes for this year, a copy of your tax return is one of the most powerful financial planning information tools we have. Whenever possible, we request that you send a copy of your return to your financial planner, associate financial planner, or client service associate upon filing. Thank you for your assistance in providing this information, which enhances our services to you.

We hope you find this additional information helpful. Please call us if you have any questions or concerns about the upcoming tax season.

Lauren Adams, CFA®, CFP®, is a CERTIFIED FINANCIAL PLANNER™ professional and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals and also leads the client service, marketing, finance, and human resources departments.

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Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.