taxes

By Chris Noffke, GBDS, CSFS, Vice President of Employee Benefits

The Affordable Care Act (ACA) brought a lot of extra work to employers and insurance companies. Whether you are pro-health care reform or against it, per the Health Affairs article, the ACA has not made insurance more affordable.

Don’t forget to call your mom – and your insurance agent

By WisMed Assure Service Team

With the intention of easing administrative burden for WisMed Assure client physicians, several of our Medical Professional Liability carriers have significantly reduced or suspended asking for renewal applications over the past few years. While this does save time, renewal applications were an opportunity to touch base, review and discuss any changes to your practice that could impact your premium or coverage.

Year-end tax planning for 2022

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Want to put thousands of dollars back into your pocket? Who doesn’t. Choices you make during your employer’s open enrollment period and for year-end tax planning can really add up.

Graded premium disability? Yes, you can!

By Tom Strangstalien, Insurance Advisor

I recently worked with a young physician to set him up with personal disability protection to provide some financial security if life throws him and his family a curve ball. Prompting our planning was that one of his peers in the general surgery specialty sustained a serious hand injury, ending his ability to perform hands-on surgery.

5 ways to develop inclusive hiring practices

By Society Insurance Human Resources, reposted with permission from Society Insurance

Inclusive hiring practices recognize diversity and embrace a wide range of perspectives that candidates from all walks of life bring to the organization. And according to research from Monster, “Four in five (86%) candidates globally say diversity, equity and inclusion in the workplace is important to them.”

Year-end tax planning for 2022

October 26, 2022October 28, 2022

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Want to put thousands of dollars back into your pocket? Who doesn’t. Choices you make during your employer’s open enrollment period and for year-end tax planning can really add up.

Consider a married couple with $250,000 of income, two kids, a home and $100,000 in a taxable non-retirement investment account. What can they do?

Add the maximum to a health savings account (HSA) if insured by a high-deductible health plan. Otherwise, adjust the 2023 contributions to efficiently utilize a flexible spending account (FSA). Approximate tax savings are $1,750 federal plus $387 state.
Time property tax payments. With the current $10,000 cap on federal deductions for state and local taxes (SALT) through 2025, most taxpayers don’t receive a federal deduction for paying property taxes. However, on the Wisconsin tax return, a tax credit worth $300 is available for paying $2,500 in property taxes each year. If last year’s property taxes were paid in December of 2021, pay up to $2,500 of this year’s taxes by December 31, 2022 and the remainder by the due date in 2023 to save $300 in taxes.
Contribute to each child’s Edvest 529 college savings plan. The first $3,560 contributed per beneficiary for 2022 is deductible on Wisconsin income taxes for a tax savings of $377.
Realize capital losses in non-retirement investments. Tax savings could be up to $720 federal and $26 state for 2022 with additional losses banked for future tax years.
Group charitable gifts into 2022 or 2023 if itemizing deductions is possible either year. Boost the charitable tax savings by giving appreciated investments instead of cash which avoids capital gain taxes. Use a donor advised fund (charitable account) to bunch multiple years of charitable gift deductions into one tax year. Tax savings depend on individual circumstances.
Increase 403(b) or 401(k) contributions to the maximum. Approximate tax deferral is $9,840 federal and $2,173 state.
Transfer $12,000 from the taxable investment to backdoor Roth IRAs at $6,000 each. Tax savings depends on individual circumstances. For a 40-year-old couple, this annual strategy saves $96,740 in taxes through age 60.

The first four items reduce 2022 taxes by $2,910. Add in some of the longer-term strategies, and tax planning is easily worth more than $100,000 over time!

This is just part of the strategy for 2022. To receive the entire 2-page checklist for 2022, download your copy instantly.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Build your financial wisdom

August 19, 2022August 23, 2022

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Join us for online educational sessions presented by WisMed Financial exclusively for Wisconsin Medical Society members. Session topics include retirement planning, social security and tax planning. Be sure to register – the replay and materials will be provided even if you miss the live event.

Social Security; $111,000 More

September 9 from 12:00-12:30 p.m.

Ideal for anyone age 59 and over who has not filed for Social Security
With more than 2,700 rules and 567 separate filing strategies, 96% of people fail to make the optimal claiming decision and miss out on $111,000 of benefits for the average household¹
Uncover various claiming strategies whether single, married, widowed or divorced
Optimize Social Security timing

Medicare Open Enrollment

October 19 from 12:00-12:30 p.m.

Ideal for anyone age 65 or older
The A, B, C and D puzzle of Medicare
Pros and cons of original Medicare versus Medicare Advantage
Wisconsin Medicare supplements are unique compared to other states
Tips when shopping for a policy

Year-end Tax Planning Workshop

November 18 from 12:00-12:30 p.m.

Ideal for everyone
This is a hands-on workshop, so bring your 2021 tax return
Review key tax numbers
Adjust your taxable income and deductions for 2022, 2023 and beyond

6 Keys to Retirement Success

January 20 from 12:00-12:45 p.m.

Ideal for anyone approaching or in retirement
Social Security benefits
Bridging the health insurance gap between early retirement and Medicare
Generating income from investments
Identifying a long-term care plan with or without insurance
Estate plan considerations
Optimizing the retirement tax bracket drop and rebound

To register, click here.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

1. The retirement solution hiding in plain sight. InvestmentNews. (2020, June 12). Retrieved August 4, 2022, from https://www.investmentnews.com/whitepapers/the-retirement-solution-hiding-in-plain-sight

Your life has only 3 planning scenarios

May 12, 2022May 17, 2022

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

You’ll either have a long life, health problems along the way or a short life. That’s it.

Plan for those three situations whether you’re single, married, with or without kids and most of your planning is done. Let’s look at how to plan for each.

First, essential tasks for everyone

Manage monthly cash flow. Call it a budget, spending plan, living below your means or whatever makes it appealing to you. It doesn’t matter if you have high income or low income, everyone needs to control their inflow and outflow.
Life happens, have an emergency fund.
Pay off all high interest consumer debt.
Give of your time, resources and be thankful. Live happy.

Plan for a long life

Are you saving at least 15% for retirement with the right investments? Boosting it to 20-25% is even better.
Have you maximized your tax advantaged retirement accounts through your employer and on your own?
Will your tax burden be higher or lower in the future? Hint – if you have a lot of tax deferred investments, you could be igniting a tax bomb that hits later in life.
Save for kids’ education expenses.
Determine the monthly income you’ll have in retirement from all sources.
Dream about your future.

Plan for health problems

Health insurance is the obvious answer.
Auto and umbrella insurance can provide for you via uninsured/underinsured coverage.
Disability insurance that replaces two-thirds of your income if you can’t perform your own occupation is critical, especially during your early and mid-career. A policy with an inflation adjustment is even better.
Everyone over age 18 should have health care and financial power of attorney documents.
Do you have a source to pay for long-term care expenses? If not, consider an insurance policy.

Plan for a short life

If anyone depends on you for income, get term life insurance. It’s cheap, so don’t skimp.
Are your beneficiary designations correct?
Do you need a will or trust?
Ensure your family knows where to find your documents and accounts.
Tell your family you love them. And if you’re faithful, pray.

Since we don’t know the future, all three plans are important for everyone. Our Physician’s Financial Guide has even more tips. Or, for one-on-one help schedule an appointment.

To your best life and healthy finances.

Mark Ziety, CFP®, AIF® 608.442.3750.
WisMed Financial, Inc. part of the Wisconsin Medical Society

Your 2022 Tax Strategy

March 10, 2022March 11, 2022

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Tax laws feel like stepping into quicksand lately, don’t they? Trying to understand if, when and how the tax laws will change can make you feel like the floor will fall out from under you at any moment. (Particularly at tax time.)

This is especially true if you’re a high earner or have accumulated a significant nest egg. With each tax change, it feels like your tax-saving strategy is in jeopardy. However, we are in familiar waters because the tax laws have evolved constantly. In the past 20 years alone, the wealthiest taxpayers’ top marginal tax rate has shifted between 35% and 39.6%.

It sounds all doom and gloom, but it’s possible to find tax-saving opportunities hiding inside your current strategy and every new tax law update.

With your 2021 tax return in hand, it’s time to start planning your 2022 tax strategy by checking some important lines on your 1040 or 1040-SR. Things to consider:

Lines 2b and 3b show dividends and interest that are adding to your current tax bill. Should you hold these investments in a tax deferred account?
Was line 4b exactly $6,000 or $12,000? If so, your backdoor Roth IRA contribution(s) was probably not reported correctly.
Did you have realized capital gains that may have added to your tax? Check line 7 to find out. If your capital gain tax rate is low, consider whether you should realize additional capital gains in 2022 or defer them to a future year.
Did your deductions help you? If line 12a is $12,550, $14,250, $18,800, $25,100, or $27,800 you did not get a deduction. Consider bunching multiple years of deductions into a single tax year so you can itemize deductions.

US Senators still intend to pass portions of last year’s failed Build Back Better Act in 2022, so the timing of property tax payments, additional tax deferral, and Roth conversions are all strategies that should be considered this year.

Want help with your tax strategy? Download WisMed Financial’s free tax planning guide or schedule an appoinment.

P.S. Download the 2022 tax brackets, retirement contribution limits, investment checklist, and quick decision flow charts from the new WisMed Mobile app.

To your best life and healthy finances.

Mark Ziety, CFP®, AIF® 608.442.3750.
WisMed Financial, Inc. part of the Wisconsin Medical Society

Fall 2022 Issue

Affordability testing

Don’t forget to call your mom – and your insurance agent

Year-end tax planning for 2022

Graded premium disability? Yes, you can!

5 ways to develop inclusive hiring practices

Year-end tax planning for 2022

Your life has only 3 planning scenarios

Your 2022 Tax Strategy