Have you checked your net worth? With the recent performance of the stock market, your net worth may have increased more than you realize. We would be happy to help review your assets & liabilities to assess any changes that should be made to your financial plan.
Did you Retire? Congratulations! If so, you may want to think about consolidating financial accounts by rolling over a workplace 401k plan into a rollover IRA. There may also be Social Security and Medicare considerations to make if you have not done so already. Give us a call to schedule a review meeting and we can put together a full analysis of what to expect going forward.
Are you still in the workforce? Did you get a raise? You may want to think about making some adjustments to tax withholdings as a result.
- Consider increasing payroll deferrals into a workplace 401k account. Remember, these deferrals reduce taxable income.
- Making more money may mean owing more in taxes. You may need to consider adjusting federal income tax withholding rates, particularly if that raise puts you into a new tax bracket.
- Maybe it's time to consider some after-tax savings options, whether it’s in a new personal investment account or simply setting aside more to build your nest egg. Let us know how we can help.
New year = New tax season. April 15 will be here before we know it! Be on the lookout for tax documents from employers, banks, and investment account companies, etc. If the tax report is treated as ordinary income, it will be issued and postmarked by 1/31. Standard investment and brokerage account statements should follow shortly thereafter.
Required Minimum Distributions (RMDs) are scheduled to resume in 2021. As of now, the government holiday for no required minimum distributions from retirement accounts only applies to the 2020 tax year. If 72 or older, we can help determine the amount required to withdraw in 2021. Distributions can be made at once or at recurring intervals, so let us know how you would like to withdraw your required amount.
