Financial Planning FAQs (Answered by Our Team)
How We Work
Clear financial answers — backed by a multi-generational team.
We take a team perspective on holistic wealth management, so you benefit from multiple viewpoints — including coordination with CPAs and attorneys when needed.
Tax Planning / OBBBA
No — Social Security is still taxable. The OBBBA created a new $6,000 senior deduction for filers 65+ that may reduce the income that triggers SS taxation for some retirees, but does not change the taxation rules themselves. Here's what actually changed.
Learn About Our Process : https://www.familywealthadvisory.com/social-security-tax-one-big-beautiful-bill
Read more here: https://www.familywealthadvisory.com/blog/is-social-security-tax-free-now-the-one-big-beautiful-bill-act-explained
The OBBBA created a new per-person deduction of $6,000 ($12,000 joint) for filers age 65 and older, available for tax years 2025 through 2028 only. It phases out above $75,000 individual/$150,000 joint MAGI and expires after 2028 unless extended.
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Social Security
The Fairness Act (signed January 2025) repealed the WEP and GPO provisions that reduced Social Security benefits for NJ teachers, firefighters, and public employees for decades. Many are owed retroactive payments dating back to January 2024.
Learn About Our Process: https://www.familywealthadvisory.com/social-security-fairness-act-wep-gpo-repeal
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Yes — but if you haven't reached full retirement age, SSA withholds $1 for every $2 you earn above $24,480 (2026 limit). The earnings test disappears entirely at full retirement age, after which you can earn any amount without reduction.
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Retirement Planning
Effective 2026, 401(k) participants ages 60–63 can contribute up to $11,250 above the standard deferral limit — if their employer plan has adopted the provision. This is one of the most valuable pre-retirement planning windows most people don't know exists.
Learn About Our Process: https://www.familywealthadvisory.com/secure-2-enhanced-catchup-60-63-2026
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A Qualified Longevity Annuity Contract (QLAC) lets you use up to $200,000 of IRA funds to guarantee income starting as late as age 85 — and reduces your RMD calculation in the years before payments begin. A longevity hedge built into your income plan.
Learn About Our Process: https://www.familywealthadvisory.com/qlac-qualified-longevity-annuity-contract
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Yes — SECURE 2.0 eliminated the old age 70½ IRA contribution cutoff. If you have earned income, you can contribute to a Roth IRA at any age, even while taking required minimum distributions from the same or other accounts.
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Estate Planning
The OBBBA made the $15M per-person federal exemption permanent — the sunset risk is gone. But New Jersey's inheritance tax still applies to assets passing to siblings, nieces, nephews, friends, and unmarried partners at 11–16%, regardless of estate size.
Learn About Our Process: https://www.familywealthadvisory.com/federal-estate-tax-exemption-permanent-2026
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Yes. An estate plan isn't just about taxes — it determines who raises your children, who makes medical decisions for you, and how your assets are handled. Almost every adult benefits from one.
We recommend a full review every three to five years — and immediately after major life events like marriage, divorce, the birth of a child, a death in the family, a business sale, or a move to a new state.
New Jersey repealed its state estate tax in 2018. However, NJ does have a separate inheritance tax that applies to assets passing to certain beneficiaries — including siblings, nieces and nephews, and close friends — at rates from 11% to 16%. This is separate from the federal estate tax and catches many families off guard. Our team reviews NJ inheritance tax exposure as part of every estate planning consultation.
Insurance Planning
Hybrid life/LTC policies combine permanent life insurance with a long-term care benefit. If you need care, the policy pays. If you don't, your family receives the death benefit. They eliminate the 'use it or lose it' objection to traditional LTC insurance.
Learn About Our Process: https://www.familywealthadvisory.com/hybrid-life-insurance-long-term-care-nj
Read more here: https://www.familywealthadvisory.com/blog/hybrid-life-insurance-with-long-term-care-is-it-right-for-south-jersey-fa-1
Working With an Advisor
Look for a CFP® with a team-based practice, a written planning process, a clear succession plan, and fiduciary commitment at all times. A team-based firm protects continuity in ways a single-advisor practice cannot — and that's exactly how we're built.
Learn About Our Process: https://www.familywealthadvisory.com/what-to-look-for-new-financial-advisor-nj
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