Clinton Township Newsletter

1 8 d e c e m b e r 2 0 2 5 W W W . C L I N T O N T W P N E W S L E T T E R . C O M 2 0 2 6 C H a n g e t o r e t i r e m e n t C at C H - u p C o n t r i b u t i o n r u l e The year is already rapidly coming to a close, making it peak season for assessing (and, in many cases, reassessing) contribution options related to retirement savings accounts. A major factor worth considering heading into the new year are changes to the SECURE 2.0 Act's catch-up contribution rule. The changes begin on January 1, 2026, and could have a significant impact on individuals 50 years of age and older who earned more than $145,000* in 2025. If you are part of this group of investors, read on to learn about what catch- up contributions are and what the new rules mean for your retirement savings. What is a catch-up contribution? If you're age 50 or older and have any variety of qualifying retirement savings accounts — including 401(k)s, 403(b)s, 457(b)s — you have the option of contributing additional pre-tax funds beyond the standard contribution limits set by the Internal Revenue Service. 1 These catch-up contributions are designed to help people nearing retirement give their investments an extra boost, which is especially beneficial for individuals who weren't able to contribute as much during their younger years. Catch-up contributions give soon-to-be-retirees an opportunity to accelerate their savings to match their expected income needs in retirement. How did Secure 2.0 Act impact investors? Passed in December 2022, the SECURE 2.0 Act was created to encourage greater use of retirement plans that allow Americans to prepare for their golden years. The legislation included a variety of tax credits and other provisions, such as opportunities for long-term and part-time employees to participate and save more for retirement. The act increased the age at which individuals must begin making required minimum distributions (RMDs) to accommodate employees who stay in the workforce longer. The catch-up contribution limit for participants aged 60 to 63 was raised in 2025 to $11,250 under this legislation, dubbed a "super catch- up" contribution. 2 This allows individuals within this age group to contribute well above the standard catch-up amount and take advantage of their peak earning years. What is the new catch-up contribution rule? Beginning in the new year, individuals with employer-sponsored 401(k), 403(b), and 457(b) government retirement plans who are 50 years of age or older and who earned more than $145,000* in FICA wages the previous taxable year, must put their catch-up contributions into a designated Roth account after taxes. 3 Simply put, this means any catch-up or super catch-up contributions for these high-income earners will be subject to tax deductions. This change does not impact a participant's standard contributions to their employer-sponsored retirement savings, which will continue to be able to be contributed pre-tax, and will not impact individuals who made less than $145,000 in FICA wages the prior year. How can I prepare for this change? For individuals nearing retirement, it's important to regularly reassess your contributions and make sure they're aligned with upcoming regulatory changes, shifts in late-career professional plans, and your personal income needs and financial goals. This shift to the catch-up contribution rule presents new strategic opportunities for high-income earners. A financial advisor can help navigate these decisions and diversify investments to set you up for success in retirement. Michelle Heide, CFP ® , CRPC ® , BFA, is a Private Wealth Advisor with Gentlestone Wealth, a financial/private wealth advisory practice of Ameriprise Financial Services, LLC, located at 16 Leigh Street in Clinton. She specializes in fee- based financial planning and asset management strategies and has been in practice for 32 years. To contact her, go to: www.GentlestoneWealthampf.com or call 908.713.6600. * In Federal Insurance Contributions Act (FICA) wages and adjusted for inflation 1- CNBC, IRS announces 401(k) catch-up contributions for 2025; https://www.cnbc. com/2024/11/01/401k-catch-up-contributions-2025.html 2- Kiplinger.com, New SECURE 2.0 Super 401(k) Catch-Up Contribution for Ages 60-63. https:// www.kiplinger.com/taxes/super-catch-up-contribution-for-age-60-63 3- John Hancock, SECURE 2.0's new Roth catch-up contribution rule. https://retirement.johnhancock. com/us/en/viewpoints/legislative--regulatory/secure-2-0-s-new-roth-catch-up-contribution-rule--- manulife-john Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP ® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP ® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements. Withdrawals from a Roth account are tax-free as long as investors leave the money in the account for at least 5 years and are 59 1/2 or older when they take distributions or meet another qualifying event such as death or disability. Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Ameriprise Financial cannot guarantee future financial results. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2025 Ameriprise Financial, Inc. All rights reserved. File # AMP8224683.1- (Approved until 10/01/2027) t H e F l e m i n g t o n W o m a n ' S C l u b The Flemington Woman's Club is located at 43 Park Avenue in Flemington. Please join us for Holiday Musical Entertainment by the Hunterdon County Senior Choir at our next meeting on Wednesday D e c e m b e r 1 0 ! D o n a t i o n s Requested: Homemade cookies (no nuts, please) for the local nursing homes. Are you interested in community service opportunities, meeting new people, expanding your knowledge base, and looking to have fun? The Flemington Woman's Club is the right place for you! All women are invited to be our guest! Not all members live in Flemington – many live in surrounding towns. We meet September through May, the second Wednesday of the month at 1:00 pm at the Clubhouse. We help many charities in the surrounding area, primarily that support women and children. Our different departments and committees allow you to find projects that fit your schedule and interests. If interested in more information please email: vhoinowski@aol.com and use FWC as the subject line, visit our website: www.FlemingtonWomansClub. org or call: 908.782.1237 and leave a message. We look forward to meeting you! Find us on facebook! "Home is the place where, when you have to go there, they have to take you in." ~ Robert Frost g i v e b l o o d t o d a y a t H u n t e r d o n H e a l t H Lives are saved every day by blood donors in our community. Giving blood is the most generous act of kindness that one human being can do for another. When you give blood, you save lives. Blood is used for accident victims, newborn babies and their mothers who need a transfusion, people undergoing surgery, patients receiving treatment for cancer and other diseases. You never know when you may need blood, or when someone you love may need it. Donating regularly can help ensure that our community is never short on blood. Can I donate blood? to be eligible to donate blood, a person must be at least 17 years of age, be in good health, weigh at least 110 pounds, have not donated in the past eight weeks, and is not currently taking antibiotics or insulin (only if of a "bovine" nature). Please note: Our 17-year-old donors must weigh at least 130 pounds. Call: 908.788.6405 to schedule an appointment. Find out more at: www.HunterdonHealth.org/services/ laboratory-services/blood-donor-services. "Maybe that's the best part of going away for a vacation —coming home again," ~ Madeleine L'Engle

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