Set forth below are a variety of tax deadlines that may apply to you in 2017. As always, please check with your tax advisor before taking action or failing to take action with regard to any of the items listed below. Also, please note that this is not a complete list of all tax deadlines and you should touch base with your tax advisor as there may be other deadlines that pertain to your personal tax situation.
Given the number of times the average American changes jobs over the course of their working life, it probably is not surprising to learn that along the way 401k’s tend to get “lost”. The mobility of the American workforce exacerbates this situation. As Americans move around the country in order to advance their careers or take advantage of new opportunities, they do not always remember to update their address with the custodians of all their 401k’s. It is easy to remember to update your address for the retirement plan account you have with your current employer but not so easy to remember to do so on accounts held with prior employers — especially given that you may only be sporadically receiving account statements if the accounts are small and relatively inactive.
...With Your Family and Yourself
We frequently work with clients who are interested in financially assisting the younger generations in their family. This may mean offering to help children or grandchildren with specific expenses like buying a house, paying college or graduate school expenses, or assisting with new business start-up costs. It may also mean making annual financial gifts to family members or taking your extended family on an annual vacation. Sometimes, a client will find themselves financially assisting an adult child through a period of unemployment, a divorce, or a medical crisis.
... Another Valuable Retirement Savings Plan Tool
Are you eligible to open a health savings account (“HSA”)? If yes, and you have not already opened one, you should consider doing so as this type of account is another tax-advantaged way to save for any medical expenses you will likely have in retirement.
An HSA is a tax exempt account that can be used to pay for medical expenses you or your family may incur. There are three key tax benefits to having an HSA. First, the money going into an HSA is pre-tax (if coming directly from your employer) or tax-deductible (if coming directly from you). Second, any interest, dividends, or other earnings inside your HSA are tax free.
Get schooled on financial aid – whatever your income level
Did you know that during the 2013-2014 academic year more than $238.3 billion in financial aid (grants, federal loans, federal work-study, and federal tax credits and deductions) was awarded to undergraduate and graduate students? Did you realize that the recipients of all this financial aid came from households spanning a wide range of household incomes? During that same academic year, the average amount of aid for a full-time college student was $14,180, including $8,080 in grants (money that does not have to be repaid) and $4,840 in federal loans.
Does the thought of asking your aging parents about the way they handle their household finances — or how they would feel about moving to a retirement community or assisted living facility — fill you with anxiety? You are not alone.
January 15, 2016 Last day to pay fourth-quarter 2015 federal individual estimated income