Page 16 THE EVERETT ADVOCATE – FRiDAy, AugusT 18, 2023 529 Plans and Roth Ira Rollovers B eginning in calendar year 2024, 529 College Savings Plan account holders will be able to roll over the funds in a 529 plan investment account into a Roth IRA in the name of the benefi ciary of the 529 plan up to a $35,000 lifetime limit. The 529 plan must have been owned by the beneficiary of the plan for at least 15 years. This is a valuable option when a child or grandchild decides not to go to college. If there are no other children or grandchildren with their own 529 plan to roll the monies into, rolling the 529 plan assets to a Roth IRA in the name of the benefi ciary not going to college is a good option, so long as the amount rolled over does not exceed $35,000. If the remaining assets in the plan then need to be cashed out, income taxes will be paid on the earnings as well as a 10% penalty. The contributions each year to the Roth IRA are subject to a limit. The limit for 2023 is $6,500. The conversion of 529 plan assets apply only to Roth IRA’s, not Traditional IRA’s. This was included in the SECURE 2.0 Act passed by Congress at the end of calendar year 2022. Say nir Sa a If, for example, there was $32,500 in your son’s 529 plan and he decided not to go to college, you could roll over $6,500 per year over the next fi ve years into his Roth IRA account until the 529 plan assets were fully exhausted. At the end of the fi ve-year period, the 529 plan assets would be depleted and your son’s Roth IRA account would be equal to $32,500 plus any earnings over that fi ve-year period. There are no modifi ed adjusted gross income limitations with respect to the ability to fund the Roth IRA contribution each year by rolling over monies from the 529 plan. However, your son or daughter would have to have at least $6,500 in earned income in order to max out on the Roth IRA contribution each year. The Roth IRA contribution limit will increase to $7,000 in 2024. There is an additional $1,000 contribution allowed for those individuals who are 50 years of age or older. The IRS needs to clarify whether or not there needs to be suffi cient earned income in order to rollover funds from the 529 plan to the Roth IRA in the name of the 529 plan benefi ciary. If your son or daughter had $32,500 in the 529 plan and the funds were rolled over to a Roth IRA, if the monies were invested over a 40-year period earning 8% per year, the balance in the account would exceed $706,000. This is another good reason to consider opening up a 529 plan for a child or grandchild. You now have more options available down the road if circumstances change and a child or grandchild decides not to attend college. Joseph D. Cataldo is an estate planning/elder law attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. y Senior Seni by Jim Miller H D M di Dear Savvy Senior, How does Medicare cover preventive health screenings? I’m due to get a physical and a colonoscopy this year, but I want to fi nd out what I’ll have to pay for before I go in. Just Turned 65 Dear Just Turned, You’ll be happy to know that Medicare covers a wide array of preventive and screening services to help you stay healthy, but not all services are completely covered. Here’s what you should know. Free Preventive Benefits Most of Medicare’s preven~ Legal Notice ~ ~ Legal Notice ~ Qualified Bidders For Portable Toilets - Porta Potties The City of Everett seeks sealed bids from qualified bidders for the supply, delivery, and service standard and/or ADA compliant portable toilets (hereinafter “Porta-Potties”) for several City-owned locations, contract 24-17 will be received by the Procurement Office, Everett City Hall, 484 Broadway, Room 14, Everett, MA 02149 until 1:00 pm on September 5, 2023 and at that time and place the bids will be publicly opened. Contract Documents may be obtained, at no charge, on or after August 16, 2023 at 9 a.m. the City Of Everett’s website. If, at the time of the scheduled bid opening, the bid opening location shall be shut down as the result of an emergency, the bids will be due and opened at the same time and location on the 1st business day the building is able to re-open. Bids will be accepted until that date and time. It is the responsibility of prospective proposers and or bidders to check that they have received all addenda. This contract is being bid under M.G.L. 30B. Bids shall be awarded to the responsible and eligible bidder offering services at the lowest price. The City of Everett reserves the right to waive any informality in or to reject any and all bids, for any reason the City determines to be in the City’s and/or the public’s best interest. August 18, 2023 tive services are available to all benefi ciaries (through Part B) completely free with no copays or deductibles, as long as you meet basic eligibility standards. Mammograms; colonoscopies; shots against flu, pneumonia, COVID-19 and hepatitis B; screenings for diabetes, depression, osteoporosis, HIV, various cancers and cardiovascular disease; and counseling to combat obesity, alcohol abuse, and smoking are just some of Medicare’s lengthy list of covered services. But to get these services for free, you need to go to a doctor who accepts Medicare “on assignment,” which means he or she has agreed to accept the Medicare approved rate as full payment. Also, the tests are free only if they’re used at specifi ed intervals. For example, cardiovascular screening blood tests once every 5 years; or colonoscopy, once every 10 years, or every two years if you’re at high risk. Medicare also offers a free “Welcome to Medicare” exam with your doctor in your fi rst year, along with annual “Wellness” visits thereafter. But don’t confuse these with full physical examinations. These are prevention-focused visits that provide only an overview of your health and medical risk factors and serve as a baseline for future care. Cost Sharing Services There are, however, a few Medicare preventive sernior C ior How Does Medicare Cover Preventive Health Services? vices that do require some out-of-pocket cost sharing. With these tests, you’ll have to pay 20 percent of the cost of the service after you’ve met your $226 Part B yearly deductible. The services that fall under this category include glaucoma tests, diabetes self-management trainings, barium enemas to detect colon cancer, and digital rectal exams to detect prostate cancer. For a complete list of services along with their eligibility requirements, visit Medicare.gov/coverage/preventive-screening-services. If you’re enrolled in a Medicare Advantage (Part C) plan, your plan is also required to cover the same preventive services as original Medicare as long as you see in-network providers. Hidden Costs You also need to know that while most of the previously listed Medicare services are free, you can be charged for certain diagnostic services or additional tests or procedures related to the preventive service. For example, if your doctor fi nds and removes a polyp during your preventive care colonoscopy screening, you will pay 15 percent of the doctor’s service fee. Or, if during your annual wellness visit, your doctor needs to investigate or treat a new or existing problem, you will probably be charged here too. You may also have to pay a facility fee depending on where you receive the service. Certain hospitals, for example, will often charge separate facilities fees when you are receiving a preventive service. And you can also be charged for a doctor’s visit if you meet with a physician before or after the service. To eliminate billing surprises, talk to your doctor before any preventive service procedure to fi nd out if you may be subject to a charge and what it would be. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book.
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