Insurance Message – Jan 2021

Worthy Grand Knight, Sir Knights and Brothers and families all,
This is really a special time as we approach the end of the year and our thoughts turn to themes of “Peace on Earth” and “Goodwill to Men!” We think of our Savior’s birth in Bethlehem and the beginning of this chapter of salvation history. Many of us will be scurrying around buying a Christmas tree, getting it decorated; looking for that perfect gift for our spouse, our kids and maybe grandkids. There is a lot going on and you’re busier than ever especially in this year of the pandemic. This year has seemed so quick yet so slow at the same time.
But let me ask you to slow down, really slow down for just a few minutes and consider some financial issues that come up at the end of the calendar year.

1. Because we’re so late in the year, you may have met your individual or family deductible on your health insurance plan. Financially this may be the opportune time for some minor procedure to be scheduled; or that visit to a specialist you may have put off. The same is true about dental insurance and sometimes even for vision coverage.
2. Speaking of health insurance, do you have a Health Savings Account? Do you have to spend the money that’s in there by year end? Some plans have a “use it or lose it” feature. Do you have to make a decision about how much to contribute next year? These are a couple of time sensitive issues.
3. If you have earned income for the year, what amount will you want to contribute to your traditional IRA, Roth IRA or 401k? Are you eligible to contribute much more based on the “catch up” provision? You won’t have to make that contribution until you pay your taxes and that could be four months away; however now is the time to start making plans.
4. Speaking of IRAs, we had had a year off in terms of RMD’s due to the CARE’s Act. But 2021 is upon us and RMD’s will return.
   All of these issues come with lots of rules and regulations, so I don’t ever want to give any blanket advice. But if you do have questions on any of these issues, let’s set up a time to speak. I’d be happy to discuss them with you.
   
   As we prepare to celebrate Christmas, let us be thankful for all the graces God has showered on us, especially the gift of his Son, our Savior! God bless all of the challenges we faced in 2020. And with God’s blessings, we look forward to a sense of normalcy in 2021!
   As always, I stand ready to help. If you or anyone you know are in need of assistance of any kind during these trying times, please feel free to contact me at (862-204-9586) (office), or e-mail: alexander.johansen@kofc.org.
   Fraternally, Vivat Jesus!
   Field Agent, Alexander Johansen