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.

Important Information for Tax Season 2019

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.

2019 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, 2020, 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 2019.

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 leads back-office activities and manages 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.

Jeanette LoPiccolo, CRPC® Branch Professional of the Year

Contributed by: Lauren Adams, CFA®, CFP®

The Center is thrilled to announce that our very own Client Service Manager, Jeanette LoPiccolo, was recognized as one of three Outstanding Branch Professionals at the 2018 Raymond James National Conference. Raymond James’s 1000+ branches had the opportunity to nominate candidates for the award, and Raymond James chose Jeanette from among this elite group.

As you can see from this nomination form excerpt, we are very lucky to have her as part of our team:

“Jeanette is the consummate service professional.  She combines superior technical ability with genuine care for clients. Jeanette consistently anticipates client needs and is always looking for WOW moments. 

Jeanette is a true joy to have on our team. Her knowledge and skills are extremely deep, and our whole team benefits from her leadership and example. From securities based lending to K-1 procurement to cost basis issues, she is adept at nearly every complex operational area available. And, if she ever does not know the answer, she is the first to volunteer to find out and report back to the group. She is always willing to help newer coworkers and assist with a complex problem.

She is a wonderful example of our firm’s Core Value of Continuous Learning and Personal Growth. In addition to holding her securities licenses and the Chartered Retirement Planning Counselor℠ designation, she is preparing to take the CERTIFIED FINANCIAL PLANNER™ exam this fall.

On top of all of this, she is a champion for our firm’s charitable causes, organizing team-wide volunteer days, company matching activities, and community sponsorship events.”

Please join The Center Team in congratulating Jeanette on this well-deserved award!

Lauren Adams, CFA®, CFP® is Director of Client Services at Center for Financial Planning, Inc.®

The RJFS Outstanding Branch Professional Award is designed to recognize support professionals in RJFS branches who contribute to the success of their advisors and teams. Each year, three winners are selected and recognized during this year's National Conference for Professional Development. To be considered for this award, Branch Professionals must have been affiliated with Raymond James for at least one year and could not have won the award in the past.

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Three New Faces on the Client Service Team

Contributed by: Lauren Adams, CFA®, MBA

It’s been one year since I last introduced new members of the client service team, and exciting things continue to happen within this department at The Center. We’ve added another three members to the team in the last few months. It’s my privilege to introduce them to you here, and I hope you’ll join me in giving them a very warm welcome to The Center Family!

Abigail Fischer joined us after recently graduating with a degree in Economics from Whitworth University in Spokane, Washington. She caught the financial planning bug from a young age and was heavily involved with financial education projects on campus. Most notably, she co-founded a counseling and financial workshop program—that was available to 2,000 students—with the goal of helping her peers build a foundation for a lifetime of financial well-being. She recently moved to Michigan to be closer to family, and we were lucky enough to snag her for a client service position this July. In addition to client service work, Abigail also helps manage The Center’s social media presence, and she loves to hear from clients and friends of The Center regarding blog topic ideas (or even just a Facebook Like or Share!).

Andrew O’Laughlin also came onboard at the end of July and joined our team after several years of experience at another advisory firm—experience he’s already putting to excellent use in his first few months as a client service team member. In addition, he earned his undergraduate degree from the University of Vermont and has completed a Masters of Business Administration at Wayne State University. If that wasn’t impressive enough, he has also obtained licenses in insurance and securities, and plans to continue to pursue more in the future (all with two little ones at home, by the way). He’s a great example of The Center’s “Continuous Learning and Personal Growth” Core Value, among others.

Joining us at the end of September, Sarah McDonell is our most recent addition to The Center’s client service team. Sarah graduated from University of Michigan with a degree in English Literature. Sarah also joined us from another financial advisory team and was attracted by The Center’s commitment to excellent client service, continual education, and strong work ethic. Speaking of which, she hopes to begin studying for the Series 7 license in the near future. Sarah also enjoys marketing and social media, as well as striving to WOW clients on a daily basis—a mindset we, of course, love.

Please join me in welcoming Abigail, Andrew, and Sarah to The Center Family! We’re so thrilled to have them onboard, and they can’t wait to meet all of our clients and friends soon.

Lauren Adams, CFA®, MBA is Director of Client Services at Center for Financial Planning, Inc.®

Gerri Harmer Nominated for Outstanding Branch Professional Award

Contributed by: Lauren Adams, CFA®, MBA

The Center is thrilled to announce that Gerri Harmer was a nominee for the 2017 Raymond James Financial Services Outstanding Branch Professional Award! This award is designed to recognize support professionals who have been affiliated with Raymond James for at least one year who contribute to the success of their advisors and teams.

We are blessed to have a whole team of exceptional professionals at The Center, and Gerri’s leadership by example is a major contributor to our Service First mentality. In the words of Partner Tim Wyman, “Service is in her DNA – it is who she is.”

Chances are, if you’ve ever visited our offices or called in to The Center, you’ve had a chance to experience Gerri’s friendliness and helpfulness firsthand. Gerri’s personal mantra is to “Make people’s lives better.” She sets a goal for herself and the firm to make our clients feel like family on the phone and when they walk in the door. Gerri’s genuine love of people is evident to everyone that has the privilege to be around her.

Partner Melissa Joy comments about Gerri, “She embodies our firm’s culture of strong work ethic, compassionate and effective leadership, and commitment to financial planning.”

Gerri is also the leading force behind The Center’s Health and Wellness initiative since 2007. This committee regularly sponsors awareness events—such as lunch and learns on the importance of sleep or brings in meditation facilitators—and has allowed us to be recognized at various local and national levels (such as the Governor’s Fitness Award and the American Heart Association’s Fit-Friendly Award).The Health and Wellness committee has become a major contributor to what we believe is a very strong culture here at The Center. Through Gerri’s leadership, our team has grown and become much more connected through a variety of methods.

Many of you comment about what a joy Gerri is and how lucky we are to have her – we couldn’t agree more. Furthermore, she recognizes service excellence in other staff members and is a pro at publicly celebrating others’ successes to help motivate the team to continue to WOW our clients and share effective service techniques amongst ourselves. Gerri sets an incredibly high bar for the rest of our team to aim for in terms of Service First attitude and team dedication.

Please join us in congratulating Gerri on her nomination!

Lauren Adams, CFA®, MBA is Director of Client Services at Center for Financial Planning, Inc.®