Have you set up Section 529 college savings plans for your children or grandchildren? The major advantage of 529 plans is that qualified withdrawals are always federal-income-tax-free and usually state-income-tax-free. But there can be limitations on withdrawal rights and not all 529 withdrawals are tax-free, even in years when significant college costs are incurred. Here’s what you should know […]
How Catch-Up Contributions Can Bolster Retirement Savings
If you’re age 50 or older, you can make extra “catch-up” contributions to certain types of retirement accounts. Many people fail to capitalize on this opportunity because they haven’t looked at the significant impact these extra contributions can have on their retirement-age wealth. If you’re worried that you won’t have enough money saved to be […]
2 Important Breaks for Mature Taxpayers to Consider
If you’re an “experienced” taxpayer, you’re probably entitled to some age-based federal income tax breaks that younger taxpayers can’t claim. Here are some details to help you take advantage of two valuable opportunities to lower your federal income tax obligations. 1. Make Retirement Account Catch-Up Contributions If you’re age 50 or older, you can make extra […]
Dos and Don’ts for Business Expense Deductions
As tax season heats up, companies of all kinds and sizes will be on the hunt for ways to reduce their tax bills. One of the most common ways is through business expense deductions, but not every such expense is deductible. Here’s what to know about the expenses that you can — and can’t — properly […]
Important Tax Figures for 2024
The following chart provides some important federal tax information for 2024, as compared with 2023. Social Security/ Medicare 2024 2023 Social Security Tax Wage Base $168,600 $160,200 Medicare Tax Wage Base No limit No limit Employee portion of Social Security 6.2% 6.2% Employee portion of Medicare 1.45% 1.45% Individual Retirement Accounts 2024 2023 Roth IRA Individual, […]
Year-End Review of S Corp Compensation: Stay on the Right Side of the IRS
With 2024 right around the corner, your shareholders might be thinking about year-end bonuses or distributions. Before doing so, it’s important to review the potential tax implications and requirements. Distributions vs. Bonuses S corporations don’t pay income tax at the entity level. Rather, income, gains, losses and deductions generally pass through to the shareholders who report […]
