PEORIA MAGAZINE March 2022

opportunities to save. Merely focusing on the year ahead isn’t enough. A better option is to put a long-term tax strategy in place that takes your goals into account. If you wish to leave a legacy or inheritance, make sure you know the rules about passing your assets onto the next generation and prepare accordingly. Keep in mind that the tax code can change depending upon new legislation. You want to stay current with the changes and plan accordingly. Again, check with your tax advisor before rushing to file for that refund.

all is not necessarily lost. You may be eligible for a back-door Roth conversion. This technique allows you to make a non-deductible contribution to an IRA account and then complete a Roth conversion of the funds. There are exceptions, however. If you currently have an open IRA account with a balance, part of the open IRA will be subject to tax on a Roth conversion. If you made a cash donation of up to $300 per person last year, you will be able to deduct up to $300 in a charitable donation. For a joint filer, that number increases to $600. This is still the case if you take the standard deduction. Remember, this is a one-time deduction that has not been extended for 2022. The current tax code will sunset in 2025. Thiswill bringback thepersonal exemption and lower the standard deduction. It will also reduce the federal estate tax exemption and the gift tax exemption. Under current law, a person can gift a total of

$12,060,000 over his or her lifetime and/or at death. That amount will revert to the $5 million exemption indexed for inflation after the current law expires. Illinois does not currently have a gift tax exemption, but the estate tax exemption is $4 million and is not indexed for inflation. This is important information to remember when planning your estate. In 2021, a taxpayer could gift $15,000 per year to any number of people. The limit has been increased to $16,000 per year for 2022. If your age tops 70years, sixmonths, you can make a qualified charitable distribution (QCD). Unfortunately, there is much confusion about QCDs because your required minimum distribution (RMD) does not start until the year you turn 72. You can do a QCD for up to $100,000 of your IRA, which will count towards your RMD for the year if you are age 72 or older. To avoid tipping the government, you must keep an eye out for

Daryl Dagit, CFP, CRPS, CEP is the market manager and financial advisor in the Peoria office of Savant Capital Management.

SAVANT WEAL TH MANAGEMENT Does your investment portfolio need a second opinion?

A second opinion is sometimes necessary in medicine because a misdiagnosis can have significant consequences. The same is true for your financial well-being.

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Savant Wealth Management is a Registered Investment Advisor. Savant’s marketing material should not be construed by any existing or prospective client as a guarantee that they will experience a certain level of results if they engage the advisor’s services. Please Note: “Ideal” is not intended to give assurance as to achieving successful results. See Important Disclosures at savantwealth.com. 309.693.0300 | savantwealth.com

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MARCH 2022 PEORIA MAGAZINE 87