Member/Community News

YOUR ANNUAL FINANCIAL TO-DO LIST The end of the year is a good time to review your personal finances. What are your financial, business or life priorities for 2015? Try to specify the goals you want to accomplish. Think about the consistent investing, saving or budgeting methods you could use to realize them. Also, consider these year-end moves. Ask us about our BUDGET program... this will help you gt restarted from a great base mark. Think about adjusting or timing your income and tax deductions. If you earn a lot of money and have the option of postponing a portion of the taxable income you will make in 2014 until 2015, this decision can bring you some tax savings. You might also consider accelerating payment of deductible expenses if you are close to the line on itemized deductions – another way to potentially save some bucks. RETIREMENT AND SAVINGS FOR THE FUTURE Think about putting more in your 401(k) or 403(b) if you are up to 60? The IRS has announced the contribution limit for 2015. Given the moderate inflation of late.... if you can , know that the annual limit rise will be $18,000 with a $6000 catch-up contribution also allowed if you are age 50 or older. Has your 2014 contribution reached the annual limit? Would you like it to be. There is still time to put more into your employer-sponsored retirement plan. If not many can set up contributions in IRAS and ROTHs here. Can you max out your IRA contribution at the start of 2015? If you can do it, do it early - the sooner you make your contribution, the more interest those assets will earn. (If you haven’t yet made your 2014 IRA contribution, you can still do so through April 17, 2015. Can you have a ROTH ? Roth IRA Income Limits for Married Filers (Joint) If you file as married filing joint or as a qualifying widow(er) your income must be less than $181,000 to contribute up to the limit. If your income falls between $181,000 and $191,000 you cannot contribute up to the limit. Your contribution is reduced. Should you go Roth between now and the end of 2014 and 2015 ? While you can no longer divide the income from a Roth IRA conversion across two years of federal tax returns, converting a traditional IRA into your ROTH , may make sense for another reason: federal taxes might be higher in 2015. Consult us before you make any 401k or IRA moves. You will want see how it may affect your overall financial picture. The tax consequences of a Roth conversion can get sticky if you own multiple traditional IRAs. Consider the tax impact of any 2014 transactions. Did you sell any real property this year – or do you plan to before the year ends? Did you start a business? Are you thinking about exercising a stock option? Could any large commissions or bonuses come your way before the end of the year? Did you sell an investment that was held outside of a tax-deferred account? Any of these moves might have a big impact on your taxes. You may wish to make a charitable gift before New Year’s Day. Make a charitable contribution this year and you can claim the deduction on your 2014 return. You could make December the “13th month”. Can you make a January mortgage payment in December, or make a lump sum payment on your mortgage balance? If you have a fixed-rate mortgage, a lump sum payment can reduce the home loan amount and the total interest paid on the loan by that much more. In a sense, paying down a debt is almost like getting a risk-free return. Are you marrying next year, or do you know someone who is? The top of 2015 is a good time to review (and possibly change) beneficiaries to your 401(k) or 403(b) account, your IRA, your insurance policy and other assets. You may want to change beneficiaries in your will. It is also wise to take a look at your insurance coverage. If your last name is changing, you will need a new Social Security card. Lastly, assess your debts and the merits of your existing financial plans. Are you returning from active duty? If so, go ahead and check the status of your credit, and the state of any tax and legal proceedings that might have been preempted by your orders. Review the status of your employee health insurance, and revoke any power of attorney you may have granted to another person. Don’t delay – get it done. Talk with us anytime and coordinate a tax professional financial meeting as well, so you can focus on being healthier ,wealthier and happier in the New Year.!!