Financial Views Newsletter – Q2:2021
Taxes aren’t something to think about only once a year. Use these tips to plan now for a more favorable outcome when you file next year.
W-4
Right after tax season is a great time to review your withholdings and make adjustments on your W-4. Forms can be found on the IRS website.
401(k)
If your employer offers a 401(k) savings and investing plan, take advantage of the tax break you can receive as you set money aside for retirement.
IRA
Tax earnings are tax-deferred in a traditional IRA. Your contributions may be tax-deductible. How much depends on your plan, spouse’s plan, and your salary.
Roth IRA
When you withdrawal at retirement from a Roth IRA you are not taxed. Because you pay taxes upfront earnings grow tax-free. Your contributions are not tax-deductible.1
529
You might be able to deduct contributions on your state tax return if you’re putting money into your state’s 529 plan. The same does not apply on federal however.2
HSA
Contributions to HSAs are tax-deductible, and so long as you use them for qualified medical expenses the withdrawals are tax-free, too.
Welcome to Our New Team Member
Alyssa joins the True Vision team with five years of experience in the financial industry. Her career began with supporting multiple advisors across the country with her wide range of financial knowledge from Social Security to full client income and investment plans.
Today she is excited to have found her work family at True Vision and enjoys being able to engage with clients on a daily basis and get to know them personally. A natural people person, Alyssa is passionate about delivering the best to clients.
Alyssa and her partner, Josh, have a small dog named Kahlua who according to Alyssa — is our whole world. A life-long learner, she is currently studying Japanese, and working to master baking sourdough bread.
Sources: https://www.nerdwallet.com/article/taxes/tax-planning, https://share.gainfully.com/of/darin-pilacinski-t3fut/content/3239689/budgeting-tips-for-weddings-qedzrclriq/.
- A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
- Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
- This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
