Most 401(k) plans allow participants to contribute to the plan either on a pre-tax basis (Traditional) or an after-tax basis (Roth). Below are the tax considerations for each choice. Pre-Tax Contributions Affect on Taxes When you save in a traditional 401(k) plan, you are saving pre-tax, meaning you don’t pay taxes on your savings until you withdraw them from your… Read More
Posts Tagged ‘ Tax ’
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Financial Steps to Take When a Loved One Passes Away
Dealing with finances after a loved one passes only adds an extra layer of stress during an already difficult time. It may seem overwhelming if you aren’t aware of their wishes or financial situation. The steps below can help during the process. Notify Their Financial Institutions To safeguard the descendant’s assets, it’s important to notify all companies that they have… Read More
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Thinking Of Borrowing From Your 401(k)? Read This First!
While it may be tempting to borrow from your retirement savings, in the end it may not be the best option. Borrowing from your 401(k) today can impact your future and defeat the overall purpose of saving for retirement. Before you withdraw from your 401(k), consider these three reasons why you should keep your hands off. Consider Tax Implications –… Read More
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7 Signs It’s Time To Fire Your Financial Advisor
Your relationship with your financial advisor is often long standing and personal. I get it. Your family has worked with this advisor for years. Your financial advisor knows you, knows your family and most importantly, “YOU LIKE THEM.” Liking your financial advisor is wonderful – you should have an amazing professional relationship. I would also argue that liking your financial… Read More
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Relief from Student Loan Debt for Maryland Residents
If you live in Maryland and owe student loan debt, Maryland’s Higher Education Commission may provide relief. However, you must act quickly as the deadline to apply is September 15th. The Student Loan Debt Relief Tax Credit went into effect on July 1st 2017. If approved, you may receive up to a $5,000 tax credit. To receive the tax credit, you… Read More
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7 Facts about Health Savings Accounts That You May Not Know About
Medical expenses can be a real burden if not carefully planned for. A Health Savings Account (HSA) is a helpful tool to help lower your taxable income and to pay for medical expenses tax-free. 1. Known as the triple tax benefit. Contributions are tax deductible, the interest earned is tax-free, and qualified medical expenses are paid tax-free. It is… Read More
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What Should You Do with Your Tax Refund?
Many people look forward to receiving a refund instead of paying taxes. Have you received or are anticipating a tax refund this year? A tax refund may feel like a bonus from the government. However, receiving a tax refund simply means you overpaid on your taxes last year and gave the government an interest free loan. This is money that… Read More
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How Will the New Tax Bill Affect Me?
As Republican lawmakers are close to reconciling the House and Senate version of the tax bill, people are wondering how the new bill will affect them. While it is still too early to know exactly what the final version will look like, there will be winners and losers. As it stands now, corporations and some business owners look to benefit… Read More
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Don’t Let Taxes Bust Your Budget
Summer has ended. Vacations were enjoyed. The kids are back in school. Time to start our hustle. Don’t wait until next spring; now is the time to look at your finances and start tax planning. Often, I hear clients tell me, “I don’t want to pay taxes.” Realistically, the only way to not pay taxes is to have no income…. Read More
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4 Simple Methods for A Painless Tax Preparation
For many individuals and families, taxes are not the definition of fun. You are probably relieved that you can finally relax and say to yourself, “I’m so glad I don’t have to go through this again until next year”. But why would you put yourself, and your CPA, through this stress and procrastination? With this year’s tax deadline behind us,… Read More