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

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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 […]

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

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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 […]

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

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[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 […]

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

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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 […]

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Will I Still Have to Pay an Obamacare Health Insurance Penalty in 2017 or 2018?

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Will i still have to pay health insurance penalties (under the Obamacare individual mandate) in 2017 or 2018? This is the question a lot of Americans are asking under the House and Senate health care replacement bills. The short answer is NO. In fact both bills repeal the individual mandate outright and make it retroactive […]

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Do Republican Health Care Changes to Repeal Obamacare Impact You?

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The Senate has announced their health care plan –  the BETTER CARE RECONCILIATION ACT (BCRA) – which is in line with the house bill, with key changes being made to appease more moderate Republicans. NPR had a nice summary comparing Obamacare, AHCA (House bill) and BCRA (Senate bill) shown in the graphic below. In general the bill does […]

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2017 Income Tax Withholding Allowance

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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 […]

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IRS Agents Getting Slammed and Call Delays Likely to Continue

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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 […]

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

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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 […]

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Tips for Avoiding Financial Disagreements

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Here is the second article in the series about couples and money. The first one was around effective planning and managing expectations for couples. But as we know in reality, even the best laid plans can change causing tension in a relationship. This article is on how to handle common financial disagreements when they (and believe me […]

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