Planning 2022

Planning for 2022

The beginning of the year always comes with a few changes and reminders. The White Oaks’ team assembled the following list of items for you to consider in planning your new year.

Are you planning to make any gifts to family or friends in 2022?

The annual exclusion has increased to $16,000/donor/beneficiary. This is the maximum amount an individual can give to another individual without incurring gift taxes. Married couples count as two donors and thus can give up to $32,000 to each beneficiary.

Are you turning 72 this year?

If you have an IRA, you will be required to take your required minimum distribution by April 1, 2023 if you turn 72 any time in 2022. Any IRA-owners over age 72 have until December 31, 2022 to take their 2022 RMD.

Did you recently inherit an IRA?

For IRAs inherited after 12/31/2019, you have ten years from December 31st after the original owner passed away to withdraw the full amount. Your withdrawal strategy varies based on your individual situation, but we typically recommend clients try to withdraw the entire amount evenly over the ten years for tax efficiency purposes.

Are you contributing to a 401(k)?

The 401(k) contribution limit has increased to $20,500/year. If you are age 50 or older by the end of the year, you can contribute an additional $6,500 for a total annual contribution maximum of $27,000.

As always, please reach out if you have any questions on the above. We’re here and happy to help with your planning! We wish all of you the very best for 2022 and look forward to working with you this year.

The foregoing content reflects the opinions of White Oaks Wealth Advisors and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns.

Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.