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Tax Brackets & Breaks · Money In Motion with Klaas Financial

• 0:00
  Speaker 1: And happy Thursday morning to you. Of course, this is
• 0:04
  Speaker 1: money in motion with COSS Financial. The website cossfinancial dot com.
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  Speaker 1: their number six oh eight four four two five six
• 0:40
  Speaker 1: three seven. Be talking this week about that big beautiful bill,
• 0:44
  Speaker 1: what that means and some of the some of the
• 0:47
  Speaker 1: nuances on that. Will be joined this morning by CJ.
• 0:50
  Speaker 1: Coss and Nate Briby of Coss Financial to tell us
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  Speaker 1: all about it. Phone lines are open. If you've got
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  Speaker 1: one thirteen ten. That's six so eight three two one
• 1:03
  Speaker 1: thirteen ten. As mentioned joined us morning's today class in
• 1:05
  Speaker 1: Nate Briby. Nate, I know you're there. How you doing this.
• 1:08
  Speaker 2: Morning, Good morning, Sean, doing great. It's been a while.
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  Speaker 3: Nate, Yes, yep, and as always, thanks everyone for listening
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  Speaker 1: class financial dot com and their telephon number six oh
• 2:42
  Speaker 1: eight four four two five six three seven. So today
• 2:45
  Speaker 1: we're talking about a pretty significant development in the world
• 2:48
  Speaker 1: of taxes, the recently passed as they call the One
• 2:51
  Speaker 1: Beautiful Bill Act CJ. What is this all about?
• 2:55
  Speaker 2: And good morning, yeah, good morning, thank you.
• 2:59
  Speaker 4: So at a high level, this this bill, the One
• 3:01
  Speaker 4: Big Beautiful Bill Act, or or known as OBBA for short,
• 3:06
  Speaker 4: because if you've been listening to our show, you know
• 3:08
  Speaker 4: that we love the acronyms. This OBBA makes permanent many
• 3:14
  Speaker 4: of the tax provisions originally introduced under the Tax Cuts
• 3:17
  Speaker 4: and Jobs Act of twenty seventeen. So that includes things
• 3:21
  Speaker 4: like the current tax brackets, the increased standard deductions, the
• 3:25
  Speaker 4: child Tax Credit, and the Qualified Business Income known as
• 3:28
  Speaker 4: QBI deduction for business owners. But the bill didn't stop there.
• 3:33
  Speaker 4: It also introduced several new key provisions worth talking about,
• 3:37
  Speaker 4: especially if you're planning for retirement or managing taxable income
• 3:40
  Speaker 4: in retirement, which of course is what the show is
• 3:43
  Speaker 4: all about. There have been some new new key provisions
• 3:46
  Speaker 4: that we're going to dig into today.
• 3:48
  Speaker 1: Fantastic stuff ahead on the program. Of course, if you've
• 3:51
  Speaker 1: got a question, love, do you have you jump on
• 3:52
  Speaker 1: in del forh number six eight three two one thirteen ten.
• 3:56
  Speaker 1: That's eight three two one thirteen ten. So one of
• 3:59
  Speaker 1: those things in a k seeing the headlines as social
• 4:02
  Speaker 1: Security may no longer be taxed, Nate, is that is
• 4:06
  Speaker 1: their truth to that?
• 4:08
  Speaker 2: Not exactly, Sean.
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  Speaker 3: So if you've been following the headlines in the previous
• 4:14
  Speaker 3: campaign that was running, this was obviously a goal of
• 4:16
  Speaker 3: the current administration, and unfortunately that did not included in
• 4:19
  Speaker 3: the bill. So What did get included in lieu of
• 4:23
  Speaker 3: that provision was a new below the line deduction for
• 4:28
  Speaker 3: those sixty five plus, so you can kind of see
• 4:30
  Speaker 3: the correlation between Social Security and the sixty five plus
• 4:33
  Speaker 3: standard deduction. Social Security can start at sixty two, of course,
• 4:37
  Speaker 3: and go up to defer up to the same demograph
• 4:40
  Speaker 3: graphic you know as being targeted with this below the
• 4:43
  Speaker 3: line deduction. So what this is, It's an additional deduction
• 4:48
  Speaker 3: for older Americans sixty five and older six thousand dollars
• 4:51
  Speaker 3: per spouse. So married finaling joint couple could obviously have
• 4:54
  Speaker 3: an additional twelve thousand dollars and I'll give you the
• 4:57
  Speaker 3: nice big number here at the end here. But how
• 5:00
  Speaker 3: how this works is this deduction is only available in
• 5:02
  Speaker 3: tax Here is twenty five, so obviously this year, okay.
• 5:05
  Speaker 2: Through twenty twenty eight.
• 5:07
  Speaker 3: A lot of these provisions we'll be talking about today
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  Speaker 3: have a phase out range, meaning as your income increases,
• 5:13
  Speaker 3: you'll potentially be eligible for less of this deduction in
• 5:16
  Speaker 3: this case, so definitely keep that mind. Married filing joint
• 5:19
  Speaker 3: is one hundred and fifty thousand up to two hundred thousand,
• 5:22
  Speaker 3: so just be aware of that for this additional deduction. Now,
• 5:27
  Speaker 3: how this works is this is in addition to the
• 5:30
  Speaker 3: already thirty one thousand, five hundred dollars standard deduction for
• 5:35
  Speaker 3: married filing joint couples.
• 5:37
  Speaker 2: Before this provision.
• 5:39
  Speaker 3: Sixty five plus individuals also got thirty two hundred dollars
• 5:43
  Speaker 3: for an additional deduction married filing joint. So plus this
• 5:48
  Speaker 3: new twelve thousand SO three numbers here at thirty one thousand,
• 5:51
  Speaker 3: five hundred thirty two hundred dollars twelve thousand total is
• 5:54
  Speaker 3: forty six thousand, seven hundred in deductions without itemizing. So
• 5:58
  Speaker 3: pretty big deal there for the sixty five plus if
• 6:01
  Speaker 3: they're eligible.
• 6:02
  Speaker 1: Where's that you mentioned that phase out? Where's that phase out?
• 6:04
  Speaker 1: Kind of that range there, Nate, one.
• 6:07
  Speaker 3: Hundred and fifty thousand to two hundred thousand sean for
• 6:10
  Speaker 3: married finling joint Really interesting.
• 6:12
  Speaker 1: As we talked this morning with Nate Briby and CJ. Closs,
• 6:14
  Speaker 1: our retirement planning professionals from Class Financial. The website COSS
• 6:17
  Speaker 1: financial dot com that's COSS k l aas financial dot com.
• 6:21
  Speaker 1: Great website to learn more about COSS Financial, learn about
• 6:24
  Speaker 1: the teams. You can also learn about COLSS Financials separate
• 6:26
  Speaker 1: divisions also cool features. If you miss part of today's program,
• 6:29
  Speaker 1: you can always listen to the podcast right at class
• 6:32
  Speaker 1: financial dot com. Subscribe there as well, and while you're there,
• 6:35
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• 6:40
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  Speaker 1: at Class Financial. It will be complimentary to you again
• 6:46
  Speaker 1: their number six oh eight four four two five six
• 6:49
  Speaker 1: three seven. And thinking about that stuff, Nate could really
• 6:51
  Speaker 1: be helpful for retirees. What about the salt salt deduction
• 6:56
  Speaker 1: state and local tax write offs? What the heck are
• 6:59
  Speaker 1: we talking about there? And how has that ben Can
• 7:01
  Speaker 1: that be a beneficial Yes?
• 7:03
  Speaker 3: Yeah, so, just like Sean said, the salt cap if
• 7:06
  Speaker 3: as it's commonly referred to as as an itemized deduction
• 7:09
  Speaker 3: eligible for US state and local taxes here So in Illinois,
• 7:13
  Speaker 3: four point nine percent flat tax plus property tax is
• 7:16
  Speaker 3: a bad word for both our Wisconsin and Illinois residents.
• 7:19
  Speaker 3: Of course, So how this is is that previously was
• 7:22
  Speaker 3: capped at ten thousand dollars. That cap was introduced back
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  Speaker 3: to twenty seventeen with the Tax Cuts and Jobs Act.
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  Speaker 3: And how this was is to get this bill passed
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  Speaker 3: some members of Congress and higher tax states mainly on
• 7:36
  Speaker 3: the coast, to be honest, you know, citizens, to get
• 7:40
  Speaker 3: that increased, okay, in order to vote for the bill.
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  Speaker 3: And how that was so, how it is now is
• 7:45
  Speaker 3: that that deduction can increase up to forty thousand actually
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  Speaker 3: for this year as well in twenty five through twenty nine,
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  Speaker 3: so it can phase down meeting as your income from
• 7:57
  Speaker 3: married finally joint exceeds five hundred thousand, less of that
• 8:00
  Speaker 3: forty thousand would potentially be available for you. Now, unlike
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  Speaker 3: the sixty five plus additional standard additional deduction, this for
• 8:09
  Speaker 3: the salt you do have to itemize. You have to
• 8:11
  Speaker 3: itemize your deductions to potentially be eligible for this deduction.
• 8:15
  Speaker 2: So a key you know difference there.
• 8:18
  Speaker 1: Speaking of as we talk about things like taxes and
• 8:21
  Speaker 1: opportunities and itemizing deductions, I'm going to ask you about
• 8:24
  Speaker 1: tax brackets and I'll ask you, see j a little
• 8:25
  Speaker 1: bit about that in just a moment. But first, yeah,
• 8:27
  Speaker 1: but to the website, Yeah, costs Financial dot com. Head
• 8:29
  Speaker 1: on over there right now. Get to know the team
• 8:31
  Speaker 1: at Costs Financial Again, that's cost k l a a
• 8:33
  Speaker 1: S Financial dot com. All right, topal number six, So
• 8:35
  Speaker 1: eight four four two five six three seven, no charge
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  Speaker 1: for that initial gets to know your appointment tach costs financial.
• 8:41
  Speaker 1: It will be complementary to you. So CJ is along
• 8:44
  Speaker 1: those tax those tax questions. What about the tax brackets?
• 8:47
  Speaker 1: Any changes there? Do they stay the same?
• 8:50
  Speaker 2: What do we know?
• 8:52
  Speaker 4: Yeah, So that's that's the big kind of takeaway from
• 8:55
  Speaker 4: the obb b A is that the tax brackets will
• 8:59
  Speaker 4: remain the same. So the brackets that were introduced in
• 9:02
  Speaker 4: twenty seventeen were the twelve, twenty two, twenty four, thirty two,
• 9:06
  Speaker 4: and thirty seven, which will now remain in place somewhat permanently.
• 9:10
  Speaker 4: We say permanently, and that they're not going to automatically
• 9:13
  Speaker 4: expire anymore. However, just because they're not going to automatically
• 9:19
  Speaker 4: expire doesn't mean a future president couldn't introduce, you know,
• 9:22
  Speaker 4: a new, completely new bracket that could get passed by
• 9:25
  Speaker 4: a future Congress. But there's nothing automatically expiring like it
• 9:29
  Speaker 4: was supposed to do headed the next year. So without
• 9:33
  Speaker 4: any action, we were going to actually revert back to
• 9:36
  Speaker 4: brackets that were going to cause some higher taxation. So
• 9:39
  Speaker 4: this is the main win for people, Well, spends on
• 9:43
  Speaker 4: how you view this. Right, if you're a pro of
• 9:45
  Speaker 4: the bill, and if you're in favor of paying less
• 9:49
  Speaker 4: income tax on your income that you receive, then that
• 9:52
  Speaker 4: was the big part of this bill that people were
• 9:54
  Speaker 4: winning from. I'll also say what Nay was just getting
• 9:57
  Speaker 4: at there. He talked about higher salt deductions, and he
• 9:59
  Speaker 4: talked about higher standard deductions, especially for those over sixty five. Really,
• 10:05
  Speaker 4: you don't have to understand all the intricacies of that
• 10:08
  Speaker 4: to understand the following, which is having a higher ability
• 10:12
  Speaker 4: to itemize for salt deduction, state and local income tax
• 10:15
  Speaker 4: deductions and the ability to get a higher standard deduction
• 10:17
  Speaker 4: for those who are older are just additional ways to
• 10:21
  Speaker 4: bring down your tax It's really all anybody needs to understand.
• 10:25
  Speaker 4: And so at the end of the day, the locking
• 10:27
  Speaker 4: in of those of those rates more permanently and the
• 10:30
  Speaker 4: fact that you can more rapidly bring down your income
• 10:34
  Speaker 4: through salt deductions or through higher standard deductions, just at
• 10:38
  Speaker 4: the end of the day, should result in lower taxes
• 10:40
  Speaker 4: for most Americans.
• 10:41
  Speaker 1: You know, it's fun we talk about this, you know,
• 10:43
  Speaker 1: kind of opinions and feelings, they definitely do vary and
• 10:45
  Speaker 1: it's like everybody's got their own. But it's always interesting
• 10:49
  Speaker 1: to see how this stuff, you know, new administrations, how
• 10:52
  Speaker 1: things change, new laws, new bills, new guidance as well,
• 10:55
  Speaker 1: and it's really good to keep up to date on
• 10:58
  Speaker 1: this stuff. It's great program. Don't forget if you miss
• 11:00
  Speaker 1: any part of today show. Got a lot more coming
• 11:02
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• 11:07
  Speaker 1: That's Coss k l a as Financial dot com. You can,
• 11:11
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• 11:13
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• 11:15
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• 11:19
  Speaker 1: great day to make an appointment six oh eight four
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• 11:31
  Speaker 1: three seven. May have heard all the talk of tax
• 11:33
  Speaker 1: free tips and overtime. We're gonna have the details on
• 11:36
  Speaker 1: then head on over to the Money and Motion listener
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  Speaker 1: question corner. We will do all of that next as
• 11:40
  Speaker 1: Money and Motion with COSS Financial continues right here on
• 11:43
  Speaker 1: thirteen ten wiv A talking this morning with our retirement
• 11:47
  Speaker 1: planning professionals from Class Financial, CJ. Closs and Nate Briby.
• 11:51
  Speaker 1: You can learn more about CJ, Nate and the whole
• 11:53
  Speaker 1: team at COSS Financial on their website coss financial dot
• 11:57
  Speaker 1: com that's colss k l a a s Financial dot com.
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  Speaker 1: Get to know the team there. You can also sign
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  Speaker 1: up for the weekly market paul S newsletter. Also you
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• 12:07
  Speaker 1: a business owner as well. Again, all those details available
• 12:11
  Speaker 1: at classfinancial dot com. They're tell for number six oh
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• 12:16
  Speaker 1: for that initial gets to know you appointment tech Laws Financial,
• 12:19
  Speaker 1: It will be complementary to you again their numbers six
• 12:21
  Speaker 1: oh eight four four two five six three seven. Talking
• 12:24
  Speaker 1: about the recently past one Beautiful Bill Act and getting
• 12:28
  Speaker 1: some of the details, and of course one of the
• 12:30
  Speaker 1: hot conversations for everyone was tax free tips and overtime.
• 12:35
  Speaker 1: What do we need to know there? What are some
• 12:36
  Speaker 1: of the details and is that the case? Will there
• 12:39
  Speaker 1: be uh tax free tips on tax free on tips
• 12:43
  Speaker 1: and overtime as well CJ.
• 12:47
  Speaker 4: Yeah, Well, as Nate was talking about earlier, you know,
• 12:49
  Speaker 4: it relates to like social security and tax ability. It's
• 12:52
  Speaker 4: always more complicated than just saying, you know, no tax
• 12:55
  Speaker 4: on tips. Now that's that's not to knock what anybody
• 13:00
  Speaker 4: has said, but rather to say to accomplish something like
• 13:02
  Speaker 4: this inside of tax legislation is complicated. But both tips
• 13:08
  Speaker 4: and overtime are still included in your gross income and
• 13:11
  Speaker 4: subject to payroll taxes. That has not changed. But now
• 13:15
  Speaker 4: for tax years twenty twenty five through twenty twenty eight,
• 13:18
  Speaker 4: So if twenty twenty five is a year that we're
• 13:19
  Speaker 4: in right now, for the next four tax years, you
• 13:22
  Speaker 4: can deduct up to twenty five thousand and tips from
• 13:24
  Speaker 4: your taxable income. So that is a big deal, right
• 13:27
  Speaker 4: depending upon your total income. And if you have twenty
• 13:31
  Speaker 4: five thousand and tips, that could be a big deal
• 13:33
  Speaker 4: again in reducing your tax Now, it doesn't mean I
• 13:36
  Speaker 4: can make five hundred thousand dollars in tips and just
• 13:39
  Speaker 4: not take any W two income and say haha, I've
• 13:42
  Speaker 4: cheated the system. But certainly for those who are receiving
• 13:45
  Speaker 4: tips in certain trades, and by the way, DIRS has
• 13:48
  Speaker 4: to give more guidance on this because there was some
• 13:50
  Speaker 4: language in the OBBBA that was talking about certain types
• 13:54
  Speaker 4: of jobs and that received tips, and it has to
• 13:56
  Speaker 4: be somewhat normal and ordinary. But yes, this could be
• 13:59
  Speaker 4: a big deal again in reducing taxation for households that
• 14:04
  Speaker 4: have someone in the household generating you know, theer amount
• 14:06
  Speaker 4: of tip income and overtime pay is also eligible for
• 14:10
  Speaker 4: a deduction up to twenty five thousand for married couples
• 14:13
  Speaker 4: filing jointly or twelve thousand, five hundred for other filers. Again,
• 14:18
  Speaker 4: for both of these there's stays out ranges depending upon
• 14:21
  Speaker 4: your income, so you'll want to talk with your tax
• 14:23
  Speaker 4: professional and see how it applies. You'll also want to
• 14:26
  Speaker 4: be mindful of the fact that this is not a
• 14:28
  Speaker 4: permanent part of the tax code. So we mentioned previously,
• 14:32
  Speaker 4: twenty seventeen Tax Cuts and Jobs Act introduced these new
• 14:36
  Speaker 4: lower brackets. What happened through the OBBA is that those
• 14:40
  Speaker 4: new brackets have now been made permanent, but there's some provisions,
• 14:45
  Speaker 4: namely no tax on tips and no tax in overtime.
• 14:49
  Speaker 4: Those parts of the provision are not permanent parts of
• 14:53
  Speaker 4: the Act, and so this will only last from twenty
• 14:56
  Speaker 4: twenty five through twenty twenty eight. But I just can't
• 14:59
  Speaker 4: encourage our listeners enough. If you're hearing us talking about
• 15:02
  Speaker 4: this and you're wondering how it applies to you, call
• 15:05
  Speaker 4: unto your financial advisor, call into your accountants and get
• 15:08
  Speaker 4: an understanding. We've already run some performance on this for
• 15:11
  Speaker 4: clients and in some cases nothing right. That means really
• 15:15
  Speaker 4: not much of a change at all. For others, quite
• 15:18
  Speaker 4: substantial thousands upon thousands of dollars in less taxation. So
• 15:23
  Speaker 4: so talk to your accountant to figure out how it
• 15:25
  Speaker 4: will apply to you.
• 15:26
  Speaker 1: As really good advice as always from CJ. Closs, of course,
• 15:29
  Speaker 1: and Nate Briby joining us this morning from Class Financial.
• 15:31
  Speaker 1: Their website class financial dot com. That's Class k l
• 15:35
  Speaker 1: aas financial dot com. You can learn more about Class
• 15:38
  Speaker 1: Financial on their website. They're telephone number six so eight
• 15:41
  Speaker 1: four four two five six three seven, No charge for
• 15:43
  Speaker 1: that initial gets to know you appointment tech Claws Financial
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  Speaker 1: it will be complementary to again, they're telephone number six
• 15:49
  Speaker 1: oh eight four four two five six three seven. As
• 15:52
  Speaker 1: we're talking then about the OBBA, I know another provision
• 15:56
  Speaker 1: the bill. There's a lot obviously a lot more to it.
• 15:59
  Speaker 1: Let's kind of real quick, kind of rapid fire. Some
• 16:02
  Speaker 1: of those some of those little provisions that folks need
• 16:04
  Speaker 1: to be aware of.
• 16:05
  Speaker 3: Nate think back to CJ's comment on provisions that expire.
• 16:09
  Speaker 2: You have to ask yourself, well, why is that?
• 16:11
  Speaker 3: Well, I hope this isn't political, but you know, tax
• 16:14
  Speaker 3: cuts cost money depending on how you score a bill,
• 16:17
  Speaker 3: that costs money. So making provisions expire after a certain
• 16:21
  Speaker 3: number a year cuts down the size of a bill.
• 16:23
  Speaker 3: So just understand that that that's why some of these
• 16:26
  Speaker 3: are only for four tax years versus permanently extending on
• 16:29
  Speaker 3: the tax bracket. So anyway, other provisions that may that
• 16:32
  Speaker 3: may be relevant to you. A child tax credit that
• 16:35
  Speaker 3: has permanently been increased to twenty two hundred dollars and
• 16:38
  Speaker 3: we'll start indexing for inflation. They're expanding the list of
• 16:42
  Speaker 3: qualified expensive expenses eligible for five twenty nine planned distributions,
• 16:47
  Speaker 3: permanently extending the federal estate tax exemption to fifteen million
• 16:51
  Speaker 3: dollars the QBI deduction Section one ninety nine A. Some
• 16:55
  Speaker 3: people that aren't business owners have no idea what that
• 16:57
  Speaker 3: means are why that matters. But those that do or
• 16:59
  Speaker 3: understand that doesn't matter, and that's been permanently extended.
• 17:03
  Speaker 2: This one that's come back. I think this was in
• 17:04
  Speaker 2: the eighties or nineties.
• 17:05
  Speaker 3: This provision was available on the tax code Vehicle loan
• 17:10
  Speaker 3: interest deduction up to ten thousand dollars for vehicles having
• 17:14
  Speaker 3: final assembly in the United States. Okay, so financing a
• 17:17
  Speaker 3: vehicle potentially that that interest may be deductible. Last one
• 17:22
  Speaker 3: in twenty twenty six, two thousand dollars non itemized charitable deduction.
• 17:28
  Speaker 2: Okay.
• 17:28
  Speaker 3: So those that give smaller amounts to their church or
• 17:31
  Speaker 3: university or whatever, they say, I.
• 17:33
  Speaker 2: Don't need that receipt.
• 17:34
  Speaker 3: You may want to keep that starting next year because
• 17:36
  Speaker 3: up to two thousand dollars without itemizing, for a married
• 17:39
  Speaker 3: and finally joint couple, it's potentially deductible.
• 17:42
  Speaker 1: Oh that's awesome. Talking this morning with Nate Briby and CJ.
• 17:46
  Speaker 1: Closs every tirement planning professionals from Class Financial. Learn more
• 17:49
  Speaker 1: online the website class financial dot com. That's Coss klaas
• 17:53
  Speaker 1: Financial dot com. Great website and resource to learn about
• 17:56
  Speaker 1: Class Financial. You can also, of course sign up for
• 17:58
  Speaker 1: the weekly Market Pulse newsletter. It's a great email that
• 18:02
  Speaker 1: you receive once a week, give you little snapshot of
• 18:04
  Speaker 1: what's been going on in the markets. Also linked to
• 18:06
  Speaker 1: the most recent podcast that available to you to subscribe
• 18:09
  Speaker 1: to right at cossfinancial dot com. They're tell forh number six,
• 18:11
  Speaker 1: So eight four four, two, five, six three seven No
• 18:14
  Speaker 1: charge for that initial get to know you appointment at
• 18:16
  Speaker 1: Costs Financial. It will be complementary to you talk about
• 18:20
  Speaker 1: some other legislation out there. We'll get the details from
• 18:23
  Speaker 1: CJ and Nate. Next as Money in Motion with Coss
• 18:25
  Speaker 1: Financial continues right here on thirteen ten WIBA talking this
• 18:29
  Speaker 1: morning with CJ. Closs and Nate Briby. They are our
• 18:32
  Speaker 1: retirement planning professionals from COSS Financial. The website Coss financial
• 18:36
  Speaker 1: dot com. That's Coss klaas Financial dot com com. Up
• 18:40
  Speaker 1: a little bit later on this segment, we'll do the
• 18:41
  Speaker 1: class quiz question week your chance to win a fantastic prize.
• 18:45
  Speaker 1: But still a lot of great information, an important information
• 18:47
  Speaker 1: when it comes to legislation, and of course, aside from
• 18:50
  Speaker 1: that most recent bill that got passed, I know there's
• 18:53
  Speaker 1: other pieces of legislation to one in particular that was
• 18:56
  Speaker 1: passed the beginning of the year that affected a lot
• 18:58
  Speaker 1: of retirees. And they're so security benefits. Get some details
• 19:02
  Speaker 1: on that, Nate.
• 19:04
  Speaker 3: Yeah, So the Social Security Fairness Act, like Sean said,
• 19:07
  Speaker 3: was passed in January of this year.
• 19:09
  Speaker 2: This honestly kind of snuck up on us. It wasn't
• 19:11
  Speaker 2: a lot.
• 19:11
  Speaker 3: You know in the headlines or in our publications, and
• 19:14
  Speaker 3: you know, I got passed. So this is a great
• 19:16
  Speaker 3: thing for in Illinois here for people covered by what
• 19:20
  Speaker 3: was deemed a non covered pension.
• 19:22
  Speaker 2: So those like in TRS or.
• 19:24
  Speaker 3: Sers here in Illinois that previously did not pay into
• 19:28
  Speaker 3: Social Security in their current careers. How that was is
• 19:31
  Speaker 3: there were two provisions that were removed under the Fairness Act,
• 19:35
  Speaker 3: namely the windfall Elimination provision and the Government Pension offset.
• 19:39
  Speaker 3: So these two provisions long story short, reduced social Security
• 19:44
  Speaker 3: benefits are those covered by a non covered pension. It's
• 19:47
  Speaker 3: called okay, so this could be on your own record.
• 19:50
  Speaker 3: So say you here in Illinois, you worked for TRS,
• 19:53
  Speaker 3: but you had some previous employment that did pay into
• 19:55
  Speaker 3: Social Security. You open up your Social Security statement, it
• 19:58
  Speaker 3: says you're eligible for eighteen hundred dollars sixty seven. Come
• 20:01
  Speaker 3: to find out when you claim your TRS they say
• 20:03
  Speaker 3: you need to tell Sole Security you have TRS because
• 20:05
  Speaker 3: they can reduce your Social Security down to them four
• 20:08
  Speaker 3: hundred dollars a month or whatever. Okay, that also could
• 20:11
  Speaker 3: reduce spousal benefits and survivor benefits if unfortunately you've lost
• 20:15
  Speaker 3: a spouse, So.
• 20:17
  Speaker 2: Those two provisions are gone.
• 20:19
  Speaker 3: So basically what you'll see now is what's on your
• 20:21
  Speaker 3: Social Security statement is what you'll be eligible for if
• 20:25
  Speaker 3: you have enough credits on your own record. The interesting
• 20:28
  Speaker 3: thing that you may have to call Social Security on
• 20:30
  Speaker 3: would be if you previously said, you know what, I
• 20:33
  Speaker 3: wasn't eligible because of these provisions. You know, someone that
• 20:36
  Speaker 3: could be claiming a spousal benefit on their spouse's record, well,
• 20:40
  Speaker 3: should call Social Security and reference the Fairness Act to
• 20:43
  Speaker 3: see if they're now eligible for a spousal benefit. Same
• 20:47
  Speaker 3: thing if they've lost a spouse that they weren't drawing
• 20:49
  Speaker 3: on on a survivor benefit, they could potentially be eligible
• 20:52
  Speaker 3: for so serves TRS non covered pensions up in Wisconsin.
• 20:57
  Speaker 3: That would be something definitely to call SOLI Security on.
• 21:00
  Speaker 3: One last thing they do, they are doing retroactive payments
• 21:04
  Speaker 3: back to January of twenty four, So it's been kind
• 21:07
  Speaker 3: of fun where CJ and I get calls from our
• 21:09
  Speaker 3: clients that get fifteen to twenty five thousand dollars lump
• 21:12
  Speaker 3: some checks because they're getting all their payments back from
• 21:15
  Speaker 3: January of twenty four. So, you know, those of you
• 21:18
  Speaker 3: that have heard the winfall elimination provision and government pension
• 21:21
  Speaker 3: offset programs, well understand that this may affect you and
• 21:24
  Speaker 3: it would be a good opportunity to call Social Security
• 21:26
  Speaker 3: to see if you're eligible for a new benefit there.
• 21:29
  Speaker 1: That is really cool to hear. We talk this morning
• 21:31
  Speaker 1: with Nate Briby and CJ.
• 21:32
  Speaker 3: Coloss.
• 21:33
  Speaker 1: They are our retirement planning professionals from Class Financial. They're
• 21:36
  Speaker 1: tell for number six so eight four four, two, five,
• 21:38
  Speaker 1: six three seven the website class financial dot com that's
• 21:41
  Speaker 1: Coss klaasfinancial dot com. While you're there getting to know
• 21:44
  Speaker 1: all the team, learn more about Class Financial and subscribe
• 21:46
  Speaker 1: to that podcast. You can also submit a question to
• 21:49
  Speaker 1: be read right here on the program and the Money
• 21:51
  Speaker 1: in Motion listener question Corner and Amy took the time
• 21:54
  Speaker 1: to write and she says, I'm planning to retire later
• 21:57
  Speaker 1: this year at age sixty five. I'm trying to decide
• 22:00
  Speaker 1: whether I should start taking Social Security right away or
• 22:03
  Speaker 1: wait until my full retirement age of sixty seven? What
• 22:06
  Speaker 1: should I consider when making this decision? And CJ give
• 22:09
  Speaker 1: that one to you.
• 22:12
  Speaker 4: Yeah. Well, as Sean said, anybody can actually write in
• 22:16
  Speaker 4: and ask us these questions. So if you're uncomfortable calling
• 22:18
  Speaker 4: in during the show and would rather just submit a
• 22:20
  Speaker 4: question like this and writing like Amy did, feel free too,
• 22:23
  Speaker 4: and truth be told. Thank you, Amy, because it gives
• 22:25
  Speaker 4: us a little bit more chance to prep for these questions,
• 22:27
  Speaker 4: which is always fun for us. But yeah, good question.
• 22:30
  Speaker 4: So if Amy, if you are planning to retire at
• 22:33
  Speaker 4: sixty five and you're wanting to know if you should
• 22:35
  Speaker 4: draw solid security now or waiting until your full retirement age.
• 22:39
  Speaker 4: These are pretty key questions that we ask and talk
• 22:42
  Speaker 4: about on the show quite often. So there are a
• 22:45
  Speaker 4: few key factors you'll want to evaluate before deciding when
• 22:49
  Speaker 4: to claim your benefits. The first is whether you plan
• 22:52
  Speaker 4: to keep working keep working after sixty five in any
• 22:56
  Speaker 4: capacity you mentioned retirement. But for some people that's just
• 22:59
  Speaker 4: welling up doing what I do now and go do
• 23:01
  Speaker 4: something else. Because remember, if you draw before your full
• 23:05
  Speaker 4: retirement age, and this is good for every listener to hear,
• 23:09
  Speaker 4: if you draw soci Security before your full retirement age.
• 23:13
  Speaker 4: There's an income offset kind of cap that you need
• 23:16
  Speaker 4: to be to be aware of. Your soci Security benefits
• 23:20
  Speaker 4: could actually be temporarily reduced due to the Social Security
• 23:24
  Speaker 4: earnings limits, which is about twenty three four hundred dollars
• 23:27
  Speaker 4: in twenty twenty five. So if your earnings exceed that number,
• 23:31
  Speaker 4: social Security withholds one dollar for every two dollars you
• 23:34
  Speaker 4: go over that limit until you reach your full retirement age.
• 23:39
  Speaker 4: So often what will tell people is, hey, I don't
• 23:42
  Speaker 4: care what job you're doing, whether it be your your
• 23:45
  Speaker 4: original job or another job. If you're earning more than
• 23:48
  Speaker 4: about we just use a rule of thumb around twenty
• 23:51
  Speaker 4: five thousand dollars a year in earnings, you may just
• 23:54
  Speaker 4: want to wait until your full retirement age at a
• 23:57
  Speaker 4: minimum before drawing Social Security. There's nothing worse than signing
• 24:01
  Speaker 4: up because you're going to quote unquote double dip. Right,
• 24:03
  Speaker 4: You're going to work and get your Social Security and
• 24:06
  Speaker 4: then only to come to find out that they are
• 24:09
  Speaker 4: taking away a large portion of your Social Security benefit
• 24:11
  Speaker 4: because you're not yet full retirement age. So amy great
• 24:15
  Speaker 4: question for everybody listening. If you have any questions about that,
• 24:19
  Speaker 4: feel free to call into us or talk to your
• 24:20
  Speaker 4: financial advisor.
• 24:21
  Speaker 1: I tell for a number six Oak source.
• 24:23
  Speaker 2: Sorry about that. Oh no, no worries.
• 24:25
  Speaker 4: I'm just gonna mention. There are a couple other things
• 24:27
  Speaker 4: real quickly, Amy, you do want to be aware of
• 24:29
  Speaker 4: if you need that income. So even if you are
• 24:33
  Speaker 4: not planning to work and you go, yep, I'm fine,
• 24:35
  Speaker 4: I'm just going to draw sixty five. Well, for every
• 24:38
  Speaker 4: year you wait, it grows between seven to eight percent
• 24:41
  Speaker 4: a year for waiting, so there could be an incentive
• 24:45
  Speaker 4: still to wait until later. And that continues to happen
• 24:48
  Speaker 4: up until age seventy. And then the final piece is
• 24:51
  Speaker 4: be aware of your longevity. If you don't need the
• 24:53
  Speaker 4: money now and you can allow it to grow at
• 24:56
  Speaker 4: that seven to eight percent pace, and you have a
• 24:59
  Speaker 4: lot of longetic and your jeans meaning people and your
• 25:01
  Speaker 4: family lived into their eighties, nineties or later, you may
• 25:05
  Speaker 4: want to consider waiting because the longer you live with
• 25:08
  Speaker 4: that higher benefit, the more money you'll get out of
• 25:11
  Speaker 4: the Social Security system. So a lot of things in that, Amy,
• 25:14
  Speaker 4: just really appreciate your question and feel free to call
• 25:16
  Speaker 4: in if you have it anymore.
• 25:18
  Speaker 1: That was a great question and at telephone number six
• 25:19
  Speaker 1: soh eight four four two five, six three seven. Don't
• 25:22
  Speaker 1: forget as well, no charge for the ininitcial get to
• 25:24
  Speaker 1: know you appointment at co Loss Financial. It will be
• 25:26
  Speaker 1: complimentary to you again the number six oh eight four
• 25:28
  Speaker 1: four two five six three seven. The website costs financial
• 25:32
  Speaker 1: dot com. That's cost klaas Financial dot com. Gott to
• 25:35
  Speaker 1: bring it back to the telephone number because it's time
• 25:37
  Speaker 1: now for the COSS Quiz Question of the week and
• 25:39
  Speaker 1: just a moment to ask you the class quiz question
• 25:41
  Speaker 1: the week. We'll then if thirty minutes from the end
• 25:42
  Speaker 1: of today's program to call the COSS Financial office right
• 25:45
  Speaker 1: here in Madison at six' oh eight four four two
• 25:48
  Speaker 1: five six three seven. If you are the first caller
• 25:50
  Speaker 1: with the correct answer, you win this week's prize, which
• 25:52
  Speaker 1: is a twenty five dollars gift card to dart In Restaurants.
• 25:56
  Speaker 1: This week's COSS Quiz Question the Week is this. With
• 25:59
  Speaker 1: the passage of recent legislation, current tax brackets that were
• 26:03
  Speaker 1: established back in twenty seventeen have been extended. Is that
• 26:07
  Speaker 1: true or false? Telephone number six oh eight four four
• 26:11
  Speaker 1: two five six three seven, first call out. Correct answer
• 26:13
  Speaker 1: won the twenty five dollars gift card to Darden Restaurants.
• 26:16
  Speaker 1: Of course, that's Loss Financials office right here in Madison.
• 26:18
  Speaker 1: No charge for that initial gets no your appointment tech
• 26:20
  Speaker 1: co Loss Financial. It will be complementary to you again
• 26:23
  Speaker 1: their number six oh eight four four two five six
• 26:26
  Speaker 1: three seven. The website coss financial dot com. That's css
• 26:29
  Speaker 1: K l a A S Financial dot com. CJ Nate.
• 26:32
  Speaker 1: It's great chatting with both of you, guys. Have a
• 26:34
  Speaker 1: great day and we'll do it all again soon. Thanks
• 26:37
  Speaker 1: Thanks Sean, Take care guys. Doctor Greer comes your way
• 26:40
  Speaker 1: next right here on thirteen ten WIBA