Monthly Insights Newsletter | September 2021

Patrick’s Planning Post

Have you maxed out contributions to an employer-sponsored 401(k) plan this year?

Most people are familiar with the initial IRS- mandated deferral limit of $19,500 for 2021 (and the $6,500 catch-up provision available for those age 50 and over), but are you
aware of the total overall annual limit of $58,000?

An oft-overlooked strategy available to some (but not all) 401(k) participants, sometimes referred to as the “mega back door Roth” or “super back door Roth,” can provide serious savings and tax benefits to 401(k) savers, who might otherwise not have any way of accumulating Roth savings because of income limitations.

The strategy is also quite timely for a few reasons.


Liebmans’ Library

For September, we chose a brief Bloomberg article about some of the risks highlighted at a recent private meeting of the Financial Stability Oversight Council. In particular, Treasury Secretary Yellen shared her concerns about the risks of Congress failing to raise the debt ceiling. While other risks have gotten more attention in recent months, we agree that the failure to raise the debt ceiling can cause financial unrest much as we saw in 2011.


Aaron’s Action Items

In honor of September being Life Insurance Awareness Month, we wanted to offer a complimentary Insurance Appraisal.

As needs and circumstances change, it is important to review existing insurance policies at regular intervals. Whether it was a policy that was purchased decades ago when you first had children, a policy that was used as a tax-deferred investment vehicle, or a lifechanging event has occurred like a death, divorce, marriage, inheritance, etc., it is critical to make sure that your life insurance still fits your current needs.

In addition to the changes in your lives, insurance has also changed and improved over time. Similar to how a brand new iPhone has more innovative features and technologies than an older version might have, insurance is also continuously evolving which can lead to a better opportunity that you might not be taking advantage of in your current policy.

If you are open to this complimentary insurance appraisal, please reach out to us for next steps.