For many, the 2020 tax filing deadline is over, and it may be time to look at the year ahead and identify year-round tax ideas from a 1040 form.
Taxpayers may want to save more for retirement in 2015. The Internal Revenue Service announced higher contribution limits for 401(k)s. The deferral (contribution) limit for employees who participate in employer-sponsored retirement plans, including 401(k)s increased to $18,000 from $17,500. Catch-up contributions for people age 50 and older went up to $6,000 from $5,500. Retirement savings
Before taxpayers select year-end planning strategies, it’s important to first calculate their individual tax bracket. The marginal tax bracket will determine which strategies could be beneficial and drive all other financial planning decisions. Chris Hennessey discusses the importance of understanding income levels, while highlighting some ideas for clients in different tax brackets. Consider different strategies: