| | Financial and Retirement Planning for Southwest Michigan | | |
Welcome to our news!
In each edition of our newsletter, we'll share some tips, some educational content, a team bio, and links to our free Retirement Resources. You can reach us at any of the buttons above and we hope you find this content helpful!
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Urgent Southwest Michigan Tax News
Emergency Tax Relief for SW Michigan Families
Following the severe storms and tornadoes on March 6, Michigan Governor Gretchen Whitmer has declared a state of emergency for Branch, Cass, and St. Joseph counties.
What this means for you:
- Extensions Available: Impacted individuals and businesses can request additional time to file state tax returns and pay state tax bills.
- No Penalties: The Michigan Department of Treasury will waive penalties and interest for those who qualify.
- Important: This relief is not automatic. You must contact the Treasury online or by phone to request your extension.
If your home or business was affected, don't rush into a deadline while you're still recovering. Reach out to the state today HERE.
Photo Credit: Alex Melendez, Michigan Storm Chasers in Three Rives, MI.
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Three Reality Shifts for Retirement Taxes
Q: What are the big "New" deductions for Michigan?
A: You can now deduct cash donations up to $2,000 even without itemizing. Plus, Michigan recently added a new state deduction for qualified tips and overtime pay.
Q: How does the "Pension Tax" change affect me?
A: The phase-in is now complete. Depending on your age, you can subtract up to $135,220 in retirement income from your state taxes this year.
Q: Can I still contribute to my 2025 IRA?
A: Yes! You have until April 15 to fund a 2025 IRA. It’s the best way to 'go back' and lower the tax bill you’re filing right now.
Still got questions?
As fiduciaries, we believe clarity is the antidote to anxiety. Don't wait for a market dip or a tax hike to find out where the holes are in your financial plan.
Want a professional second opinion on your results? 📞 Call Justin today at (269) 323-7964.
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Dropping your return in a mailbox on April 15 is no longer enough!
The 2026 "Postmark Trap"
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Warning; Before You Mail Your Taxes…
For decades, the "postmark date" was your safety net. But in 2026, USPS has changed how mail is processed. Mail collected from a blue box is no longer guaranteed a same-day postmark—it may not be stamped until it reaches a regional sorting facility 24–48 hours later.
Don't get hit with a late penalty:
- Request a Hand-Cancel: If you’re mailing close to the deadline, go inside the post office and ask the clerk to hand-stamp your envelope.
- Use Certified Mail: This provides a dated receipt that serves as legal proof of when you actually sent it.
- E-File: The only way to get an instant, undeniable timestamp.
The Math: A one-day-late postmark can trigger a 5% failure-to-file penalty.
Don't leave it to luck! 📞 Call Chuck at 269-323-7964 with any questions you have.
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The Retirement Reality Check: The OBBBA "Senior Bonus"
New $6,000 Tax Deduction for Seniors!
The Reality:
While the One Big Beautiful Bill Act (OBBBA) does provide a new $6,000 deduction for those 65+, it’s not a "check in the mail." It’s a reduction of your taxable income.
The Breakdown:
If you are a couple over 65, that’s a $12,000 shift in your tax bucket. For someone in the 22% tax bracket, that’s about $2,640 in actual cash savings staying in your pocket instead of going to the IRS.
The Catch:
This deduction doesn't help you if you don't have taxable income to offset. If your income is primarily from non-taxable sources, the "bonus" might not provide the relief you expect.
Chuck’s Bottom Line: "The OBBBA is full of these 'hidden' wins. But a deduction is only a win if you have the right income strategy to trigger it. Don't leave your $2,600 on the table this April.
Take our 2 minute Retirement Reality quiz to find out how ready YOU are! Call Chuck with any questions you have at 269-323-7964.
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April 15–21: Money Smart Week | |
What's Next After the April 15 Deadline?
Whether you’re getting a refund or you had to write a check, the most important question isn't what happened last year—it’s "What happens next?"
Welcome to #MoneySmartWeek. Now that your 2025 data is fresh, it’s the best time to run a "Retirement Reality Check" for 2026.
3 Steps to Take This Week:
- Analyze Your Refund: If you got a massive refund, you’ve essentially given the IRS a 0% interest loan. We can help you adjust your withholdings so you see that "free money" in your paycheck every month instead.
- Review Your "Bucket" Strategy: Are you over-exposed to income tax in retirement? Use this week to see if a Roth Conversion makes sense while tax rates are still historically low.
The OBBBA Audit: Now that you’ve filed, did you miss any of the new 2026 senior deductions or SALT cap benefits? Let's make sure you're set up to capture them for the next filing.
Chuck’s Bottom Line: "Being 'Money Smart' isn't about how much you make; it's about how much you keep. Don't let your tax return sit in a folder—let it be the roadmap for your next big move."
| Thinking about a Roth Conversion But Not Sure About the Timing? | |
This video is for you.
Financial advisors Chuck and Justin Henrich of Southwest Michigan Financial, LLC, explain when is the best time to do a Roth conversion and why.
We dive into the crucial factors that determine if a Roth conversion is right for your retirement plan, including tax implications, market conditions, and how it affects your overall tax strategy in retirement.
Get the clarity you need to make an informed decision and potentially save thousands in taxes down the road!
Don't make your investment decisions based on a "best guess." Let the fiduciaries at SWMI Financial guide you.
| |  | Last-Minute 2025 IRA Contributions | |
You have until mid-April to reduce your 2025 tax bill. Contributing to your IRA or HSA now can still impact the return you are filing this April.
📞 Call Chuck at 269-323-7964 to run your 2026 contributions schedule.
| Quizzes for Risk and Retirement | | | Download Free Helpful Guides | | |
Our Company
Charles R. Henrich offers investment advisor services through Southwest Michigan Wealth Management, LLC, a Registered Investment Advisor in the state of Michigan. Insurance products and services are offered through Southwest Michigan Financial, LLC. The aforementioned are affiliated companies. Southwest Michigan Wealth Management, LLC and its advisors do not render tax, legal, or accounting advice. Southwest Michigan Wealth Management, LLC and Southwest Michigan Financial, LLC are not affiliated with or endorsed by the Social Security Administration or any government agency.
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Kalamazoo Office
Southwest Michigan Financial, LLC
4341 S Westnedge Ave, Ste. 1201
Kalamazoo, MI 49008
Phone: (269) 323-7964
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Marshall Office
Southwest Michigan Financial, LLC
830 W Michigan Ave
Marshall, MI 49068
Phone: (269) 323-7964
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