What to Know: New 529 to Roth IRA Transfer in 2024

Alexis DuffyNewsroom

The good news is there is a logistical workaround worth considering. Rather than changing the beneficiary of an account, simply request a rollover of funds to the other child’s existing 529 account. This leaves the original account (and its 15-year lifespan) intact and allows for future transfers between siblings if warranted. Keep in mind you can only do this once every 12 months. 

U.S. Debt Downgrade: Meaning and Implications

Alexis DuffyNewsroom

Edit Post U.S. Debt Downgrade: Meaning and Implications With so much attention and questions surrounding the recent U.S. debt downgrade, I thought now would be a good time to send over a quick message about what exactly happened and what it could mean for Americans like you and me. Take a look below. The Chickens Come Home to Roost We see the debt clock ticking 1 and think nothing of it–it’s all good as long as payments are made. But what happens when there’s a debt ceiling showdown and a close call with a government shutdown? Well, in the eyes of Fitch Ratings, the combination of these factors meant it was time for the proverbial chickens to come home to roost. Below is an overview of the who, what, why, and how. Who Fitch Ratings Is: Fitch Ratings 2 is a credit ratings agency based in New York and London. Its role is to provide insight into creditworthiness for investors who rely on these ratings as a guide for which investments will not default and ideally yield a solid return. What the Credit Ratings Agency Did: Fitch’s Issuer Default Ratings 3 scale ranges from AAA (best) to D (worst). The U.S. long-term rating was recently downgraded from AAA to AA+4, a one-notch markdown from the gold standard of AAA. Why This Happened: The agency downgraded 4 the U.S. due to concerns about the erosion of governance and predicted fiscal deterioration over the next three years. This decision was made after Fitch had placed 5 the U.S. on a negative watch in May, citing the debt ceiling standoff as a contributing factor. The federal budget deficit has also risen rapidly 6 since the debt ceiling showdown in May/June, which could be a driver in the credit rating revision. How It Could Impact Americans: The debt downgrade could increase mortgage and borrowing rates7, as more uncertainty can translate to higher interest rates for consumers. A Reminder: We Have Been Here Before While the news headlines make it seem like the sky is falling on U.S. creditworthiness, it’s important to know that we have been here before. In 2011, Standard and Poor’s (now known as S&P Global Ratings) downgraded 8 the U.S. debt from its highest mark of AAA to AA+ after the U.S. had maintained the top rating since 1917. So, the recent downgrade by Fitch is the second in U.S. history. Markets slumped back in 2011 on the announcement but eventually recovered. This time, the debt downgrade market reaction has been far more muted, most likely because the announcement merely confirms what many market participants already knew 9. (Markets typically respond more to new information.) Perhaps the downgrade is not as cataclysmic as it sounds 10. Moving forward, we will continue to monitor the situation and keep you apprised of any developments. If you have any needs or questions in the meantime, do not hesitate to email or call us at the number and email address below. Yellow Line image Yellow Line image The PensionmarkMeridien Team may be reached at 866-871-9963 or meridienteam@pensionmark.com Know someone who could use information like this? Please feel free to send us their contact information via phone or email. (Don't worry – we'll request their permission before adding them to our mailing list.) Yellow Line image Yellow Line image Pensionmark® Financial Group, LLC ("Pensionmark") is an investment adviser registered under the Investment Advisers Act of 1940. Pensionmark® is affiliated through common ownership with Pensionmark Securities, LLC (member SIPC). Please consult your financial professional for additional information. This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Citations: 1. US Debt Clock.org 2023 2. FitchRatings.com, 2023 3. FitchRatgings.com, 2023 4. CNBC.com, August 2, 2023 5. FitchRatings.com, May 24, 2023 6. Fox News, July 10, 2023 7. CNN Business, August 3, 2023 8. CNN Money, August 6, 2023 9. Morning Star, August 5, 2023 10. NPR, August 2, 2023 This image has an empty alt attribute; its file name is Yellow-Line.jpg Pensionmark® Financial Group, LLC ("Pensionmark") is an investment adviser registered under the Investment Advisers Act of 1940. Pensionmark® is affiliated through common ownership with Pensionmark Securities, LLC (member SIPC).  SEO Readability Schema Social Focus keyphraseHelp on choosing the perfect focus keyphrase(Opens in a new browser tab) Get related keyphrases(Opens in a new browser window) Preview as: Mobile resultDesktop result Url preview: PensionmarkMeridien | Providence, RI Based | Serving New England pensionmarkmeridien.com › newsroom › U.S.-Debt-Downgrade:-meaning-and-implications SEO title preview: U.S. Debt Downgrade: Meaning and Implications - PensionmarkMeridien | ... Meta description preview: Aug 11, 2023 － While the news headlines make it seem like the sky is falling on U.S. creditworthiness, it’s important to know that we have been here before. SEO title Title Page Separator Site title Slug Meta description While the news headlines make it seem like the sky is falling on U.S. creditworthiness, it’s important to know that we have been here before. 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We see the debt clock ticking and think nothing of it–it’s all good as long as payments are made. But what happens when there’s a debt ceiling showdown and a close call with a government shutdown?