2024 Guide Audit Summary [October 17, 2024]

fpPathfinder constantly strives to provide informative checklists and flowcharts that help advisors be more diligent in their planning process. To maintain the highest standards of accuracy and clarity, we've recently conducted a comprehensive review of our entire guide library.

Led by Guide Editor Chris Granger, CFP®, our audit team meticulously reviewed each guide to ensure they meet the needs of today’s advisors. Below is the full list of updated guides as well as a brief description of each change.

Check out the list below to see if your favorite guide has been updated.

List Of Updated Guides

1. What Issues Should I Consider For My Aging Parents?
   1. We added a missing space between two letters and capitalized a letter for stylistic consistency. 
2. What Issues Should I Consider When Having (Or Adopting) A Child?
   1. We added language clarifying that the Adoption Tax Credit is non-refundable and has a 5-year carryforward for unused portions. 
   2. We added additional examples for state-specific issues to consider. 
3. Am I Eligible For Medicare Part A & Part B?
   1. We capitalized a letter for stylistic consistency.
4. What Issues Should I Consider When Doing A Section 1035 Exchange
   1. We changed an “A” to “An” for grammatical purposes. 
5. Should I Roll Over My Dormant Traditional 401(k)?
   1. We added language referencing automatic distribution rules that may apply to account balances below $5,000. 
   2. We changed the term “public service employee” to “qualified public safety employee” to be more consistent with the language found in the SECURE Act 2.0. 
   3. We broadened the language referencing exceptions to the 10% penalty. Previously, we simply said “if under 59.5”. However, this is not the only exception to the 10% penalty. The language now says “unless an exception applies”.
6. Common Retirement Plans For Small Business Owners
   1. We added a missing space between two letters.
   2. We changed language regarding the aggregate annual contribution limit for solo 401(k) accounts. The revised language is now clearer. 
7. How Must I Take Distributions From The Traditional IRA I Inherited?
   1. We added language clarifying that a minor child (eligible designated beneficiary) of the deceased owner will become subject to the 10-Year Rule after attaining the age of 21 (i.e., they are no longer considered an eligible designated beneficiary at that point). 
8. Should I Set Up A Traditional 401(k) For My Business?
   1. We included language referencing a starter 401(k) for consideration.
9. Important Numbers
   1. We added a sub-header under “Federal Income Tax”. The sub-header says “Rates apply to taxable income (i.e., income after deductions)” to help clarify what amount of income applies to the federal brackets. 
10. What Issues Should I Consider When Starting A New Job?
    1. We added a new question under the “Cash Flow Issues” section. This new question addresses changes to compensation throughout the year (e.g., pay frequency, time off, parental leave, bonuses, commissions, etc.), and provides a reminder to the advisor/client to plan accordingly.
11. What Issues Should I Consider If I Experience A Sudden Wealth Event?
    1. We added the word “the” before the referencing of another guide title (for stylistic consistency).
    2. We corrected the title of another guide that is referenced within this checklist.
12. Will A Distribution From My Roth IRA Be Tax & Penalty-Free?
    1. We added language clarifying the rules around the 10% penalty when withdrawing funds from a Roth IRA that are part of a conversion within the last 5 years. 
13. Will I Have To Pay Tax On The Sale Of My Investment? 
    1. We added language that further fleshes out whether a sale is subject to long-term capital gains treatment. This is generally the case if an asset is held for more than one year. However, there are exceptions to this rule, such as when someone inherits an asset. The added language mentions those exceptions. 
14. What Issues Should I Consider When Selling My Home? 
    1. We added a missing question mark to a complementary guide that is referenced in this checklist.
15. Should I Consider Doing A Roth Conversion?
    1. We added language clarifying that one may be subject to a 10% penalty if they withhold taxes directly from the Roth conversion itself (as opposed to paying for the tax liability out of pocket). 
16. Pay Stub Review
    1. We updated the language by removing any references to “allowances” on the W-4. 
    2. We added language to remind the reader to double-check that the correct states and localities are being withheld for.
17. Will Healthcare Change As I Transition Into Retirement?
    1. We added additional thoughts for one to consider if they are not yet age 65 (i.e., not yet eligible for Medicare) and are not currently receiving health insurance through their employer.
    2. We changed the spelling of “20+ employees” to “20 or more employees” to be stylistically consistent with other guides.
18. What Issues Should I Consider When Establishing My Charitable Giving Strategy? 
    1. We added language clarifying when a contemporaneous written acknowledgment (CWA) and/or IRS Form 8283 is needed when making donations.
19. Can I Make A 529-To-Roth IRA Transfer?
    1. We added a new box reminding the reader to be mindful of any state-specific issues that may affect their 529-to-Roth IRA transfer.
20. Issues To Consider As A New Client
    1. We updated language (referencing FDIC insurance) to be more consistent with the language used in official sources. 
    2. We changed “&” to “And” in the titles of two complementary guides that are referenced in this checklist so that they accurately reflect the title of those guides. 
21. Will My Roth IRA Conversion Be Penalty-Free?
    1. We added language to a question about nondeductible IRA contributions to ensure it captured more relevant scenarios to consider.
    2. We added language (regarding converting assets in a SIMPLE IRA) to ensure the reader knows to factor in nondeductible contributions from any other IRA accounts.
22. What Important Issues Should I Consider Regarding Changes Made By The SECURE Act 2.0?
    1. We changed the term “public service employee” to “qualified public safety employee” to be more consistent with the language found in the SECURE Act 2.0. 
    2. We added language clarifying an increased (i.e., the over 50 catch-up amount) allowable amount in 529-to-Roth IRA transfers.
    3. We added language clarifying the rule that requires one to make Roth catch-up contributions (instead of tax-deductible catch-up contributions) if their wages for the previous year were too high. 
23. Does An Annuity Fit Within My Financial Plan?
    1. We removed an unnecessary comma and changed a word to improve the grammar and language. 
    2. We added the words “after annuitization” to clarify that non-qualified annuities are only taxed on a pro-rata basis (i.e., split between basis an gains) if the annuity is annuitized. 
    3. We added a reference to the “Common Annuity Products” summary guide as an additional supplement. 
24. Can I Make A Deductible Contribution To My HSA?
    1. We added additional clarifying language to more precisely capture the requirements for making a deductible HSA contribution.
    2. We added a new box asking whether one contributed to an FSA, and how that may impact one’s ability to make a deductible contribution to an HSA.
25. Am I Eligible For Social Security Benefits As A Surviving Spouse?
    1. We added a new box that reminds the reader to consider how the earnings test (if still working) may reduce the amount of survivor benefits one can receive. 
26. What Issues Should I Consider Before I Update My Estate Plan?
    1. We changed a question by adding more concerning examples one may want to consider if their goal is to protect their beneficiaries from adverse situations that may affect their inheritance. 
27. Am I At Risk Of Having My Identity Stolen Or Being A Victim Of Fraud?
    1. We fixed a minor spacing issue.
28. Important Dates
    1. We updated language to give greater clarity about the end of the General Enrollment Period (for Medicare Parts A & B), the Open Enrollment Period (for Medicare Advantage), and the Annual Enrollment Period (for existing Medicare enrollees). 
29. Will The Deductibility Of My Retirement Plan Contributions Be Impacted By The QBI Rules?
    1. We added the word “the” before the referencing of another guide title (for stylistic consistency).
    2. We added the acronym “QBI” in the title of another referenced flowchart (for consistency with the title of that referenced flowchart). 
    3. We changed “is taxable income” to “is your taxable income” in a question (for grammatical purposes).
    4. We added some additional planning points to consider (e.g., after-tax contributions, Roth employer contributions) after one has already maxed out their employee Roth 401(k) contributions. 
30. What Issues Should I Consider When Starting Out Financially?
    1. We added language to include local income tax systems/returns (in addition to federal and state). 
31. What Issues Should I Consider During A Recession Or Market Correction?
    1. We made a few minor language changes to improve readability.

Our Purpose

All of us at fpPathfinder are here to facilitate more diligent communication between you and your clients about financial planning topics. To support you, our team creates checklists, flowcharts, and summary guides so you can navigate client communications with confidence. The process our team follows speaks to the purposeful craftsmanship with which we approach every guide. 

If you are an fpPathfinder member, you already understand how important the updates are. It’s wonderful to have what you need at your fingertips. You’ll never wonder if you’re looking at the most current, relevant information, and you can proceed with confidence.

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