Page 18 THE REVERE ADVOCATE – FRIDAY, APRIL 21, 2023 CANDIDATE | FROM Page 3 largest cities, Lawrence. In his capacity as CAO, Juan worked with the mayor and city council of that city to make the COVID-19 vaccine more accessible to residents and to expand childcare services to working people in the city. He also helped build and manage Lawrence’s nearly $400-million budget without any budget or service cuts and while providing efficient city services. “I am proud to endorse Juan for the Revere City Council. A product of our public schools and youth leader in our city, Juan is the reason why we must continue to bet on Revere’s young people,” said Mayor Brian Arrigo, adding that “as the Chief Administrative Office REVERETV | FROM Page 7 nity and an upcoming student musical performance. Watch “In the Loop” to fi nd out more information about the application process for internships through YouthWorks. The second announcement is to profor the City of Lawrence, Juan spearheaded and lead stateleading municipal services that improved the lives of people there. I am sure that Juan will bring that passion, experience, and creativity for providing reliable and life changing city services to the city and the people he loves in Revere.” “I am running for city council to put my experience to work for Revere residents. I know that together, we can build a brighter and stronger city government that responds to the needs of working families. A city that can fi nd solutions to the transportation, housing, labor, and environmental issues Revere residents face. Solution rooted in Revere.” In 2021 Jaramillo ran for State Representative in Revere and mote the Revere High School Rock Ensemble’s upcoming concert the weekend of May 5. The Rock Ensemble will be performing their take on the music of Radiohead. The high school students are also welcoming Rumney Marsh Academy Percussion, the Garfi eld Middle School Rock Ensem Winthrop earning over 90% of the vote in the Revere part of that legislative district. Jaramillo has been a lifelong youth mentor through the Revere Youth in Action and Revere Pop Warner organizations. He currently works in the labor movement and lives with his wife, Crystal and his one-year-old son, Lucas. Since his announcement, Juan has raised over $15,000 for his campaign. Juan invites his family, friends, and supporters to Rincon Limenco, located at 260 Broadway, Revere (formerly China Roma), on Monday, May 1, 2023 at 6:00 PM for a special event. The Revere Preliminary and General Elections will be held on September 19th and November 7th of 2023 respectively. ble and the Susan B. Anthony Middle School Rock Ensemble to the stage. You can fi nd all recordings of “In the Loop” with more detailed information about these announcements on YouTube and Instagram in four languages and playing in between all programming on RevereTV. New RMD Rules for 2023 Dear Savvy Senior, What are the new rules on required minimum distributions from IRAs and 401(k)s? I will turn 72 this year and want to be clear on what I’m required to do. Planning Ahead Dear Planning, Thanks to the SECURE Act 2.0 that was passed by Congress last December, there are several new rules that aff ect required minimum distributions (RMDs) from traditional IRAs, 401(k)s and other tax-deferred retirement accounts. These changes, which build on the original SECURE Act of 2019, are a benefi t to retirees by increasing the RMD age and lowering the penalty for missing a withdrawal. Here’s what you should know. New RMD Rules As of Jan. 1, 2023, the starting age for taking RMDs is now 73, up from 72. And it rises to age 75 in 2033. This change means that if you turn 72 this year, as you stated in your question, you can delay your RMDs one more year, allowing your savings in these accounts to grow longer, tax deferred. But once you turn 73 (next year), you must start taking annual RMDs from the tax-deferred retirement accounts you own – like traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s and 457(b)s – and pay taxes on those withdrawals. Distributions are taxed as ordinary income in your tax bracket. There are, however, a few exceptions. Owners of Roth IRAs are not required to take a distribution, unless the Roth is inherited. And starting in 2024, Roth 401(k)s will not be subject to RMDs either. There’s also a work waiver for RMDs you should know about. If you are still working beyond age 73, and you don’t own 5 percent or more of the company you work for, you can delay withdrawals from your employer’s retirement plan until after you retire. But if you have other non-work-related accounts, such as a traditional IRA or a 401(k) from a previous employer, you are still required to take RMDs from them after age 73, even if you’re still working. Deadlines and Penalties Generally, you must take your distribution every year by Dec. 31. First timers, however, can choose to delay taking their distribution until April 1 of the year following the year you turn 73. But be careful about delaying, because if you delay your first distribution, it may push you into a higher tax bracket because you must take your next distribution by Dec. 31 of the same year. Also note that you can always withdraw more than the required amount, but if you don’t take out the minimum, you’ll be hit with a 25 percent penalty (it was 50 percent) on the amount that you failed to withdraw, along with the income tax you owe on it. This penalty drops to 10 percent if you take the necessary RMD by the end of the second year following the year it was due. Distribution Amounts Your RMD is calculated by dividing your tax-deferred retirement account balance as of Dec. 31 of the previous year, by an IRS estimate of your life expectancy. A special rule applies if your spouse is the beneficiary and is more than 10 years younger than you. IRA withdrawals must be calculated for each IRA you own, but you can withdraw the money from any IRA or combination of IRAs. If you own 403(b) accounts, they too allow you to total the RMDs and take them from any account or combination of accounts. With 401(k) plans, however, you must calculate the RMD for each plan and withdraw the appropriate amount from each account. To calculate the size of your RMD, you can use the worksheets on the IRS website – see IRS.gov/Retirement-Plans and click on “Required Minimum Distributions.” Or contact your IRA custodian or retirement-plan administrator who can do the calculations for you. For more information, see the “Distributions from Individual Retirement Arrangements” (publication 590-B) at IRS.gov/ pub/irs-pdf/p590b.pdf. 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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