Enjoy this month’s edition that features an update on the T. Rowe Price Real Estate fund and reminder about the upcoming tax filing deadline.
Yes, I know, what could possibly be more fun to read than tax tips. Rest assured, this is quick and understandable – and could save you money.
Max out your retirement account contributions
The new tax law (Tax Cuts and Jobs Act) passed in December of 2017 marks the biggest overhaul in the tax code in many years. The impact of these changes is far reaching and will impact most of us in some way. As we are now over half-way through 2018, this is a good time to look at your tax situation in light of the new tax law and make any necessary adjustments prior to year-end.
I recently completed the IRS On-line Calculator and was surprised to find we are scheduled to owe tax in April because we are under-withholding. With the federal tax law changes, many middle-Americans will see their taxes decrease this year. When the IRS directed employers to change withholdings to the new tax brackets, however, many of us saw a bump in our paychecks in February. As a result, you may be under-withholding and would benefit from taking 15 minutes to check. Don’t worry, it’s surprisingly easy.
Healthcare planning and retirement planning are as inseparable as catfish and whiskers. Get this, an average 65-year old man will need $131,000 in retirement to cover just premiums and prescriptions – the average woman, $147,000. These are expenses that could blow up one’s retirement plan. Learn here how a Health Savings Account may be just the solution while offering generous tax advantages.
When the federal tax law changed late last year, part of the concern raised by many was the potential impact of the law on charitable contributions. Specifically, would people still be inclined to give even if they are unable to deduct them from their income taxes? Do people give because they believe in the cause or because they simply want the tax deduction? For charitable organizations, colleges and universities and other groups, these are serious questions that could materially impact their mission. So, let’s walk through the potential deterrent to contributing and offer a solution for those over the age of 70 ½.
Back in late September the Lexington Financial Planner blog wrote about how President Trump’s tax proposal would affect you. Now, the House Ways and Means Committee has revealed their tax bill so let’s take another look. No talking points, no politics, just math. Uh, fun math. No, seriously.