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2020 Beginning of the Year Financial Planning Checklist

Founded in 2002Greetings!

The start of a new year and decade is a great time to look at your personal

finances with fresh eyes – and we have some ideas for how to proceed with

your review. While end-of-the-year tasks come with a deadline, these

proposed action steps can be completed over the coming months. But in my

experience it’s better to sit down and attack them sooner rather than later

before time passes and you’re on to tax filing and other duties.

Please keep the following in mind as you read through our beginning-of-2020

checklist:

This list is meant to serve as a reminder of suggested actions to

consider. Since personal circumstances vary, it is important to consult

with your Altair engagement team and personal tax advisers regarding

your specific situation.

We’ve provided a glossary beginning on page 6 that provides a brief

explanation of each task listed. If you have questions that go beyond

the information provided, please don’t hesitate to reach out to your Altair

engagement team.

We encourage you to discuss the act and its potential impact

with your Altair team and attorney to determine the best course of

action, if any.

Warm regards,

Kathryn

Kathryn A. O'HaraDirector of Financial Planning

303 W. Madison Street, Suite 600 Chicago, IL 60606 312.429.3000altairadvisers.com

Additionally, we want to make you aware of some significant changes to the

retirement and estate planning landscape. As of January 1st, lawmakers

established the Secure Act (Setting Every Community Up for Retirement

Enhancement Act). Some of the key provisions include:

An increase to the age individuals are required to begin minimum distributions (RMDs) from qualified retirement accounts (to 72 from 70½)

Elimination of age cap for traditional IRA contributions (previously capped at 70½)

Elimination of stretch IRA provisions for non-spouse beneficiaries

Ability to use $10,000 for 529 plans to repay student loans

Completed Recommendation Responsible Party Target Date

Retirement Planning / Employee Benefits

Examine SECURE Act Provisions and Discuss Possible Adjustments

Altair to Advise 2020

Review 2019 Spending and Savings Client/Altair 1st Quarter

Discuss 2020 Expense and Cash Flow Goals Client/Altair 1st Quarter

Communicate Income Adjustments and New Stock Grants for Upcoming Year

Client 1st Quarter

Review Asset Withdrawal Strategy and Adjust if Needed

Altair to Advise 1st Quarter

Increase Retirement Plan Contributions (Pre-Tax/Post-Tax/Catch-Up Contributions)

Client 1st Quarter

Increase Health Savings Account and Flexible Spending Account Contributions

Client 1st Quarter

Fund 2019/2020 Non-Deductible IRAs and Consider Converting to Roth

Altair to Advise April 15th, 2020

Gifting / Education Planning

Discuss Gifting Plan for Children/Grandchildren (2020 Annual Exclusion Gifts $15,000/$30,000) Client 1st Quarter

Fund 2019 Roth IRAs for Children (If they have earned income) Client April 15th, 2020

Estate Planning

Review Estate Plan and Fiduciary/Beneficiary Designations

Client Ongoing

Fund Irrevocable Life Insurance Trust (ILIT) Accounts

Trustee 1st Quarter

Income Tax Planning

Gather and Organize Documents Necessary for Tax Filing

CPA/Client/Altair 1st Quarter

Adjust Tax Withholding Client 1st Quarter

Other

Review Group Benefit Elections and Understand Updates for Coming Year

Client Ongoing

Review Health Insurance Plan and Understand Updates for Coming Year

Client Ongoing

Evaluate Current Debt Structure and Current Interest Rates

Altair to Advise Ongoing

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2020 Beginning of Year Financial Planning Checklist

Key Dates – 1st Quarter

3/15/2020 Last day to use 2019 FSA dollars (grace period expires)

3/16/2020 Deadline for Partnerships/S Corporations to file tax return or file extension

4/1/2020 RMD Deadline for those who turned 70 and ½ in 2019

4/15/2020 Deadline to file 2019 income tax return or file extension + deadline to file Form 1041 – Trusts and Estates

2020 Planning Numbers & Limits

Individual Retirement Accounts 2020 2019 Individual IRA (Roth, Traditional) $6,000 $6,000 Catch-Up Contribution (Age 50+) $1,000 $1,000

Annual Qualified Plan Limits 2020 2019 Maximum Compensation Used to Determine Contributions $285,000 $280,000 Deferral Limits for Plans 401k & 403b $19,500 $19,000 Catch-Up Contribution (Age 50+) $6,500 $6,000 SIMPLE $13,500 $13,000 Catch-Up Contribution (Age 50+) $3,000 $3,000 457 $19,500 $19,000 Catch-Up Contribution (Age 50+) $6,500 $6,000 SEP IRA $57,000 $56,000 Maximum Annual Addition for Defined Contribution Plan $57,000 $56,000 Maximum Annual Benefit for Defined Benefit Plan $230,000 $225,000

Other 2020 2019 Health Care FSA Contributions (pre-tax limit) $2,750 $2,700 Dependent Care FSA Contributions (pre-tax limit) $5,000 $5,000 HSA Contributions $3,550/$7,100 $3,500/$7,000 Catch-Up Contribution (Age 55+) $1,000 $1,000

This information provided is not written or intended as specific tax or legal advice. Altair employees are not authorized to give tax advice or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.

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2020 Beginning of Year Financial Planning Checklist

Retirement Planning / Employee Benefits

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Glossary

1. Examine SECURE Act Provisions and Discuss Possible Adjustments: The Setting EveryCommunity up for Retirement Enhancement Act of 2019 ushers in significant changes to thetreatment of IRAs and certain retirement benefits post-death. Key changes to discuss with your Altairteam, tax advisers and attorney include the elimination of stretch IRA provisions (for certainbeneficiaries), increased age for Required Minimum Distributions (increasing from 70 ½ to 72 if you

were born on or after July 1st, 1949 ) and the elimination of IRA contribution age limits.

2. Review 2019 Spending & Savings: Examine year-end banking and credit card statements andcompare actual expenses vs. projected expenses. Confirm whether 2019 savings goals were met.

3. Discuss 2020 Expense & Cash Flow Goals: Do adjustments need to be made to expenses? Whatare your goals for the upcoming year? Are there any big expenses on the horizon?

4. Communicate Income Adjustments and New Stock Grants for Upcoming Year: Inform yourengagement team about any adjustments to compensation (salary/bonus) and new stock grants inthe coming year.

5. Review Asset Withdrawal Strategy and Adjust if Needed: Once you determine how much moneyyou will need to pull in 2020, your Altair team will determine which assets to draw upon first.

6. Increase Retirement Plan Contributions: In 2020, you can elect to defer up to $19,500 of yourcompensation to a 401(k). Those aged 50-plus can defer an extra $6,500 for a total of $26,000.Additionally, some plans allow you to make after tax contributions, up to the IRS limit of $57,000.

7. Increase Health Savings Account /Flexible Spending Account Contributions: In 2020, you cancontribute up to $2,750 to a health care FSA and $5,000 to a dependent care FSA. Additionally, theIRS increased HSA contribution limits to $7,100 for those with family coverage and $3,550 for thosewith self-only coverage.

8. Fund 2019/2020 Non-Deductible IRAs & Consider Converting to Roth: Although your incomemay be too high to make a direct contribution to a Roth IRA, you can fund a Roth IRA by making anon-deductible IRA contribution and immediately converting it to a Roth IRA. In 2019 and 2020,individuals can contribute $6,000 to an IRA. Those aged 50-plus can defer an extra $1,000 for a totalof $7,000. With the passage of the SECURE Act, there is no longer an age limit for contributions.

Gifting / Education Planning

Estate Planning

Income Tax Planning

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Glossary

11. Review Estate Plan & Fiduciary/Beneficiary Designations: With the passage of the SECURE Act,it is crucial to review your estate documents and beneficiary designations with your attorney toensure they still meet your wishes. Non-spouse beneficiaries will now be required to take largerdistributions to adhere to the new 10-year rule which could result in a higher marginal tax rate ascompared to a longer distribution period.

12. Fund Irrevocable Life Insurance Trust Accounts: Make gifts to your Irrevocable Life InsuranceTrusts (ILITs) early in the year to ensure assets are in place when insurance premiums are due.

13. Gather and Organize Documents Necessary for Tax Filing: Begin collecting W-2s, 1099s,investment income information (interest & dividend income, proceeds from the sale of stocksand bonds, income from foreign investments), business income and Social Security benefits toprepare your 2019 federal and state tax returns.

14. Adjust Tax Withholding: Under the Tax Cuts and Jobs act, many people saw their tax bracketschange in 2019, as well as changes to other common tax credits. These changes could affecthow many allowances you should claim and how much tax should be withheld from your paycheck.Take some time to review your W-4 and update your withholding amount if necessary.

9. Discuss Gifting Plan for Children/Grandchildren: If you plan on gifting money to your children orgrandchildren this year, consider how you plan to make the gifts (529 contributions, cash gifts, etc.)In 2020, you can gift $15,000 per person ($30,000 per couple, if the decision is made to split gifts)to any individual. As a reminder, if you pay college or medical bills directly to the institution, yourpayment is not considered a gift and there is no limitation on your contributions. Under the newSECURE Act, $10,000 from 529 plans can now be used to repay student loans.

10. Fund 2019 Roth IRAs for Children: If your children have earned income, you can use part of theirannual gifting exclusion to fund a Roth IRA for each working child. This strategy helps transfer wealthto the next generation in a tax-efficient manner.

Other

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Glossary

15.Review Group Benefit Elections & Understand Updates for the Coming Year: Review youremployee benefit elections (group health, dental, life, disability, FSA, HSA) and ensure you understandany updates to coverage.

16. Review Health Insurance Plan & Understand Updates for the Coming Year: Familiarize yourselfwith updates to your medical coverage including new co-insurance and deductible limits.

17.Evaluate Current Debt Structure & Current Interest Rates: With interest rate volatility, it isimportant to analyze your outstanding debt and determine whether or not it makes sense torestructure any outstanding loans.

Altair AdvisersAbout AltairAltair Advisers is an independent wealth advisory firm providing investment management, financial plan-ning and client education services. We advise a select group of individuals, families, foundations and endowments. As a fiduciary, we serve as an advocate for our clients, providing objective advice and comprehensive guidance across all aspects of our clients’ financial lives.

Our goal is to simplify the complexities of wealth so that you can pursue and enjoy the opportunities it enables.

Advice for Your Full Financial PictureLike a symphony, your wealth consists of many different components that must complement and bal-ance each other. Our three-part service offering supports your full wealth management needs. Whether designing a portfolio to achieve specific investment goals, reviewing a long-held insurance policy or determining the best way to talk about family trusts with young adults, we work in close collaboration with you and your other professional advisors to ensure an integrated approach to your wealth planning.

Wealth Guidance for Life DecisionsWealth decisions are life decisions and they are influenced by both predictable and unexpected events – marriage, birth of a child, death in the family, sale of a business, change in health, relocation or retirement, divorce. We understand that emotions naturally play a role in how you evaluate financial options and see it as our job to provide evenhanded advice within your assessment process. As your life and financial needs evolve over time, our disciplined structure ensures your wealth planning re-mains relevant and current.

For More Information Visit www.altairadvisers.com

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Disclosures

This document has been prepared by Altair Advisers LLC for its clients and associates. The views and recommendations contained within this document are those of the authors at the time of writing. Should you have any questions regarding the material contained herein, or need further assistance regarding these or other issues, please direct all inquiries to 312.429.3000 or info@altairadvisers.com.

The material shown is for informational purposes only. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, and actual results may differ materially from those anticipated in forward-looking statements. As a practical matter, no entity is able to accurately and consistently predict future market activities, and all investments are subject to the risk of loss. While efforts are made to ensure information contained herein is accurate, Altair Advisers LLC cannot guarantee the accuracy of all such information pre-sented. Material contained in this publication should not be construed as accounting, legal, or tax advice.

©2020 Altair Advisers LLC. All Rights Reserved.

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Altair Advisers LLC303 West Madison Street, Suite 600 Chicago, Illinois 60606312.429.3000

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