Taxes and Retirement

Comparing House and Senate GOP Tax Reform Plans For Trump Tax Changes in 2018 and 2019

6 comments

House and Senate Republican (GOP) lawmakers have released their proposals for President Trumps Tax Reform measures under the Tax Cuts and Jobs Act. These proposals are aimed at building on Trump’s promises to streamline the US personal and corporate tax code. The plans promise tax savings in 2018 of nearly $1,200 to $1,700 for an average […]

Read the full article →

What Will Be My Tax Rate and Tax Bracket in 2018 – Trump, GOP vs IRS Tax Tables

1 comment

Given all the tax reforms being proposed under the Trump administration, many Americans are understandably wondering if they will be paying more or less in taxes next year. Depending on various factors, including which news outlet you get your information from, the situation will vary from person to person. But for now the IRS has […]

Read the full article →

IRS Tax Changes for 2018

0 comments

The IRS has released its 2018 tax updates via Notice 2017-64 and revenue procedure 2017-58. Highlights are provided below. Remember these updates are for 2018 taxes filed in 2019. For the upcoming 2017-18 tax year, I have included links (for filings due next year by April 17, 2018) where applicable. Personal Tax Brackets The standard deduction for married […]

Read the full article →

2018 401k and 403b Plan Contribution Limits Could Drop Precipitously Under Trump-Republican Tax Reform

2 comments

401K and 403b limits have held steady or moderately increased over the last few years with more and more Americans using these tax advantaged employer sponsored vehicles to save for their retirement income. However this bastion of American retirement savings is under attack from Trump and GOP tax reform proposals. Basically to fund proposed tax […]

Read the full article →

I Like Donald Trump But Will Drop Him Like a Hot Potato if He Raises My Taxes

2 comments

The title of this article is from a reader (Barry P.) who had this comment on Trump’s proposed tax reforms: I live in Massachusetts and make $61,000.00 annually. I own a home and pay mortgage interest of around $12,000 dollars. My state income taxes and property taxes amount to another $8,000. So my itemized deduction […]

Read the full article →

2018 vs 2017 Roth IRA Contribution and Income Limits plus Conversion Rollover Rules

93 comments

[Updated with 2018 Roth IRA limits] The latest income phase out ranges for the deductibility of Roth IRA contributions are shown in the table below. You may be able to contribute to a Roth IRA for yourself or your spouse if you have earned income within or below the following thresholds. Looking to open your first IRA […]

Read the full article →

Maximum 401k Contribution Limits Up To $55,000 in 2018 – Individual Limits Rise to $18,500

0 comments

A lot of people assume the maximum annual contribution to employer sponsored retirement plans like a 401(k), 403(b) or Government Thrift Savings Plan (TSP), are what is published at the individual level. However, this could be very misleading if your employer contribution or match is generous and/or you are a high income earner. In fact […]

Read the full article →

2017 Income Tax Withholding Allowance

0 comments

Updated income-tax withholding tables for 2017 have been released by the IRS. In 2017 the amount for one withholding allowance on an annual basis is $4,050 (same as 2016). Employers will start using the revised withholding tables and correct the amount of Social Security tax withheld as soon as possible in 2017, but not later […]

Read the full article →

IRS Agents Getting Slammed and Call Delays Likely to Continue

2 comments

Many American taxpayers are again asking this year why it is so hard for them to call in and get through to a real IRS agent. The answer is simply these agents that provide telephone assistance to taxpayers have too much on and there aren’t enough agents to do the work or handle the ever increasing […]

Read the full article →

5 Reasons I Max Out My 401k Retirement Account as Fast as I Can – The 25% Contribution Rule

3 comments

Every year around November when the IRS publishes updated 401k plan limits for the year ahead I set myself a goal to see how fast I can reach the maximum contribution limit. I am fortunate that I earn and save enough money to make the maximum pre-tax retirement account contributions, but even if you cannot get […]

Read the full article →