Simon Financial Group

When considering a record keeping system for your business, you need to ask yourself some very important questions

Keeping Good Records is Good Business Maintaining good records for your business not only helps to meet your tax and legal obligations, but it can save you money.

🎓 Most of the conversation around college savings is about whether you're saving enough. Fewer people talk about what happens when a 529 plan outlasts the beneficiary’s education needs.

Maybe your child earned a scholarship. Maybe they chose a less expensive school. Maybe the plan changed entirely.

However it happened, you built this account carefully, and now it has more in it than you need.

For years, your options were limited: take a taxable distribution and pay a 10 percent penalty on earnings, or change the beneficiary and hope someone else uses it.

SECURE 2.0 added a third option. Not everyone knows that you can roll unused 529 funds directly into a Roth IRA for the account's beneficiary.

Here's what to know:

🔹 $35,000 lifetime cap per beneficiary

🔹 The account must be at least 15 years old

🔹 Annual rollovers are capped at that year's Roth IRA contribution limit ($7,500 in 2026)

🔹 Only contributions made at least 5 years before the transfer date qualify

🔹 No income limits apply (unlike regular Roth contributions)

This doesn't happen overnight.

If your 529 has more in it than your child will use, it may be worth a conversation before that money sits idle any longer.

📝 A 529 plan is a tax-advantaged education savings plan. Before choosing a plan, it's important to consider not only the state tax treatment but also any associated fees and expenses. Availability of a state tax deduction will depend on your state of residence, as state tax laws and treatment may vary from federal tax laws. If you make nonqualified distributions, earnings will be subject to income tax and a 10 percent federal penalty tax.

📝 To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.

For more information, see our website at: https://www.saulsimon.com/blog

#529

Resourcefully Yours

Your family could know every password you have and still be legally locked out of your photos, email, and accounts after you're gone.

☁️ Most estate strategies never address this gap.

A password helps practically. But it doesn't give your family legal permission to access an account.

Many platforms restrict access under their terms of service, and privacy laws can limit what companies disclose, even to a spouse or adult child.

These tools exist because knowing someone's password is not the same as having the right to use it.

Here are some suggestions:

◆ Reference digital assets generally and name a digital executor or fiduciary

◆ Keep a separate, secure inventory with accounts, passwords, recovery keys, and wishes

Many states have adopted the Revised Uniform Fiduciary Access to Digital Assets Act, or RUFADAA. It creates a legal path for fiduciaries to access digital assets. But the law works best when paired with documented instructions and properly configured platform settings.

Your memories are saved. Make sure your family can access them.

For more information, see our website at: https://www.saulsimon.com/blog



Resourcefully Yours

If you thought that payouts from life insurance are tax-free in all cases, think again.

When Life Insurance Becomes Taxable Life insurance proceeds are generally tax-free. But not in all cases.

☂️ One lawsuit has the potential to undo what it took a lifetime to build.

Most people assume their home and auto insurance policies cover everything. For everyday situations, they often do.

The problem is the situation that you never saw coming.

Think about where liability risk actually shows up.

🔹 A serious car accident where you are found at fault and multiple people are injured

🔹 A guest getting hurt on your property

🔹 A defamation claim from something posted online

🔹 A teenage driver in your household

🔹 An incident involving a rental property you own

🔹 A dog bite that leads to a settlement

Standard home and auto policies typically cap liability at $300,000 to $500,000. For someone who has spent decades building wealth, that coverage limit can leave a gap.

An umbrella policy extends that coverage to $1 million or more.

Most people who add an umbrella policy say the same thing afterward: they wish they had done it sooner.

For more information, see our website at: https://www.saulsimon.com/blog

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Resourcefully Yours

A home is the single largest financial commitment for most people. What mortgage fits you best?

Choosing a Mortgage Selecting a mortgage isn't an easy process. Get a better understanding of how professionals make the right decisions.

SocialMedia may be important in growing your company, but it may introduce liability. Is your company protected?

Social Media: #NewestBusinessLiabilityRisk Social media may be a modern imperative for businesses looking to grow and build their brand, but it also introduces risk.

Many retirees have discovered the benefits of a retirement spent in the great outdoors. Are you ready to do the same?

Retiring Wild: National Parks and You Get ready to enjoy America’s national park system with this helpful article.

We were all once someone’s intern.

Today is National Intern Day, and it made me think about the person who took a chance on me early in my career.

Most of us still remember that person.

For families, there is another reason to pay attention to the teenagers or young adults working this summer.

A paycheck can make a teenager eligible for a Roth IRA.

A teenager who contributes $2,300 a year starting at age 15 could have more than $707,000 by age 65, assuming a 6 percent average annual return.

And the contribution does not have to come out of the teen’s pocket.

A parent or grandparent can fund it, as long as the teen has enough earned income to qualify.

A summer job can be more than a first line on a resume.

It can be the start of a long-term financial habit.

If a teenager in your life is earning money this summer, have the Roth IRA conversation sooner rather than later.

📝 To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.

📝 Consider talking to your tax, legal, or accounting professional before moving ahead.

For more information, see our website at: https://www.saulsimon.com/blog



Resourcefully Yours,

Facing divorce? Don't overlook changes to your insurance coverage.

What You Should Do About Insurance Following a Divorce In the face of divorce, making changes to insurance coverage may be overlooked.