As the year turned from 2019 to 2020, there stealthily rolled in several of the most sweeping reforms to retirement and tax legislation in a decade or so (outside of the 2017 Tax Cuts and Jobs Act, or TCJA). The recent changes apply to IRA, 401k and other retirement savings accounts. If any of these apply to you then please read on:
Turning 70½ this or next year
Own a business with or proposing a 401k plan
Working for a small company and do not have access to a 401k plan
Need an early distribution for reasons of qualified birth or adoption
After a year – really a decade – of excellent returns in the stock market, and for 2019 in the stock AND bond markets, it makes sense to ask, “WHAT IF?” As in, what if certain events take place in the markets or economy that could spoil the last several years of positive portfolio returns? Naturally then, there would be a handful of guesses or responses to the “what if” questions.
We are nearing the 2019 “Tax Year Finish Line”… but there’s still time to address a handful of potentially tax minimizing items*. One that was a major item of confusion for taxpayers in 2018 was withholding elections. Especially for taxpayers making under $250,000 (and ALL taxpayers) these elections can make a big difference between getting a REFUND** and NOT getting a refund.
The beginning of October means we are in the 4th Quarter… and the countdown begins to year-end. The following are excerpts from the Year-End Tax Planning Checklist.* Several of these items, if addressed now, could make a big difference to your 2019 tax filing AND add to your savings.
There have been lots of trends (mostly good) in real estate this year.
Existing home sales have been mostly UP and exceeding expectations
New home sales are near a 12-year high
Interestingly, a statistic that can be seen as mostly positive (for certain suburbs) but partly negative (for certain major cities) is that the Millennials who are between the ages of 25 and 39 have shown interest in moving OUT of several major cities.