Confirmation

May 4, 2021 Jace Gilleshammer

Spring is a wonderful time of year.

Snow melts, flowers bloom, docks, and boats are placed in the water. This is the time of year when we see the cold bareness of winter transition into the long warm days of summer. With the season come key moments that signal the end of winter: tax season, golf course openings, trees budding.

For all of us, spring confirms that winter doesn’t last forever. As dreary March stretches into light-filled May, we find new hope, new growth. We receive this confirmation when we have to buy our kids new soccer shoes, or suffer aches and pains from hitting golf balls, or see farmers in the fields.

After the year we’ve been through, it is comforting to recognize the growth process is alive and well. No matter how cold the winter is, spring comes. This time of year, that’s confirmation of new opportunities and growth for us all.

Planning for Physicians: Managing Contributions Between a 401(k), 457(b)

May 4, 2021 Dustin Sobolik - Investment Officer

As many of our readers likely know, the Federal government provides strong incentives for saving for retirement and other financial goals. You can break these down into three broad categories: tax deductibility (on contributions), tax-free distributions (i.e. withdrawals), and tax deferral (on growth). Many physicians can increase their tax deductions and benefit from tax deferral by contributing to both a 401(k) plan and a 457(b) plan.

401(k) and 457(b) plans are both employer-sponsored retirement plans. The main difference is 457(b) plans can only be sponsored by certain entities, namely state and local governments, along with nonprofits such as hospitals, charities, and unions.

Retirement Plan Restatement

May 4, 2021 Jana Samek, Relationship Manager – Retirement Services

Every six years the Internal Revenue Service (IRS) requires certain qualified retirement plans to be fully amended and restated to comply with law changes. The Cycle 3 Defined Contribution (DC) Plan Restatement period began on August 1, 2020, and plan sponsors of defined contributions plans (401(k), profit-sharing, and money purchase pension plans) will have until July 31, 2022, to comply. Plans that do not restate their plan document by this date will be subject to IRS-imposed penalties, which, in extreme cases, could jeopardize the plan’s tax-qualified status.

So why is this important? Plan documents are the framework that an individual retirement plan must follow. They are drafted based on laws and regulations set forth by three federal regulators: Congress, the Treasury Department (IRS), and the Department of Labor (DOL). The IRS is the main overseer, and it has the ability to “pre-approve” plan documents.

Meet Naomi Schempp

May 4, 2021 Heartland Trust

Naomi is a native of Garrison, North Dakota, and she has called Fargo home since 2002. She works on the trust side of HTC and has been a welcome addition to our team.

Tell us about yourself.

I received both an associate of science and an associate of arts degree from Williston State College. I continued my education and received a bachelor of arts degree in communications from North Dakota State University. Go Bison!

Wills: The Cornerstone of Your Estate Plan

May 4, 2021 Heartland Trust

Adapted from Broadridge Investor Communication Services

If you care about what happens to your money, home, and other property after you die, you need to do some estate planning. There are many tools you can use to achieve your estate planning goals, but a will is probably the most vital. Even if you are young or your estate is modest, you should always have a legally valid and up-to-date will. This is especially important if you have minor children because, in many states, your will is the only legal way you can name a guardian for them. Although a will does not have to be drafted by an attorney to be valid, seeking an attorney’s help can ensure that your will accomplishes what you intend.