401k Archives - Page 2 of 3 - Milliken, Perkins & Brunelle

Answers to your questions about 2023 limits on individual taxes

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February 8, 2023 Kevin Brunelle 2023 taxes, 401k, IRA

2023 taxes

Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That’s understandable because your 2022 individual tax return is due to be filed in 10 weeks (unless you file an extension).

However, it’s a good time to familiarize yourself with tax amounts that may have changed for 2023. Due to inflation, many amounts have been raised more than in past years. Below are some Q&As about tax limits for this year.
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Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penalty

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January 31, 2023 Kevin Brunelle 401k, retirement plan withdrawal, simple IRA, Traditional IRA

retirement plan withdrawal

Most retirement plan distributions are subject to income tax and may be subject to an additional penalty if you take an early withdrawal. What’s considered early? In general, it’s when participants take money out of a traditional IRA or other qualified retirement plan before age 59½. Such distributions are generally taxable and may be subject to a 10% penalty tax.

Save for retirement by getting the most out of your 401(k) plan

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December 20, 2022 Kevin Brunelle 401k, Roth 401(k)

401k

Socking away money in a tax-advantaged retirement plan can help you reduce taxes and help secure a comfortable retirement. If your employer offers a 401(k) or Roth 401(k), contributing to the plan is a smart way to build a substantial nest egg.

Thinking about participating in your employer’s 401(k) plan? Here’s how it works

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October 26, 2021 Kevin Brunelle 401k, retirement plan

401k

Employers offer 401(k) plans for many reasons, including to attract and retain talent. These plans help an employee accumulate a retirement nest egg on a tax-advantaged basis. If you’re thinking about participating in a plan at work, here are some of the features.

2021 individual taxes: Answers to your questions about limits

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February 9, 2021 Kevin Brunelle 401k, charitable deduction, gift tax, IRA Contribution, tax deduction

2021 tax limits

Many people are more concerned about their 2020 tax bills right now than they are about their 2021 tax situations. That’s understandable because your 2020 individual tax return is due to be filed in less than three months (unless you file an extension).

Don’t forget to take required minimum distributions this year

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January 26, 2021 Kevin Brunelle 401k, CARES Act, required minimum distribution, RMD, Roth IRA, Traditional IRA

required minimum distribution

If you have a traditional IRA or tax-deferred retirement plan account, you probably know that you must take required minimum distributions (RMDs) when you reach a certain age — or you’ll be penalized. The CARES Act, which passed last March, allowed people to skip taking these withdrawals in 2020 but now that we’re in 2021, RMDs must be taken again.

Maximize your 401(k) plan to save for retirement

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December 8, 2020 Kevin Brunelle 401k, Roth 401(k), Roth IRA

401k

Contributing to a tax-advantaged retirement plan can help you reduce taxes and save for retirement. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a smart way to build a substantial sum of money.

Answers to your questions about 2020 individual tax limits

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January 28, 2020 Kevin Brunelle 401k, gift tax, IRA Contribution, itemized deduction, Social Security, Tax Cuts and Jobs Act

Right now, you may be more concerned about your 2019 tax bill than you are about your 2020 tax situation. That’s understandable because your 2019 individual tax return is due to be filed in less than three months.

However, it’s a good idea to familiarize yourself with tax-related amounts that may have changed for 2020. For example, the amount of money you can put into a 401(k) plan has increased and you may want to start making contributions as early in the year as possible because retirement plan contributions will lower your taxable income.

Congress Reinstates Expired Tax Provisions

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January 11, 2020 Kevin Brunelle 401k, kiddie tax

Income Taxes reinstated

Congress let many tax provisions expire on December 31, 2017, making them dead for your already-filed 2018 tax returns.

In what has become a much too common practice, Congress resurrected the dead provisions retroactively to January 1, 2018. That’s good news. The bad news is that if you have any of these deductions, we have to amend your tax returns to make this work for you.

And you can relax when filing your 2019 and 2020 tax returns because lawmakers extended the “extender” tax laws for both years. Thus, no worries until 2021—and even longer for a few extenders that received special treatment.

The changes are outlined in the attached document.

Using your 401(k) plan to save this year and next

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November 12, 2019 Kevin Brunelle 401k, retirement contribution, retirement plan

Roth 401(k) or Traditional 401(k)

You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a tax-wise way to build a nest egg.