Posts Tagged "Budget"

How much do you need to retire?

Posted on Jul 24, 2017

Most Americans simply don’t save enough for retirement. Nearly half (45 percent) of working-age households don’t have any retirement assets, according to the National Institute on Retirement Security. Of those working-age households close to retirement (age 55 and older) nearly two-thirds have less than one year’s worth of their annual salary in retirement savings. The goal So how much do you actually need to retire comfortably? There are many variables to consider, including retirement age, available pensions, and investment return assumptions. Mutual fund broker, Fidelity, estimates you need enough savings to replace roughly 85 percent of your pre-retirement income. Many experts estimate you will have to save between 8 and 12 times your pre-retirement annual income to reach this goal. But the amount you need depends on when you plan to retire. For example, Fidelity estimates a person planning on retiring at age 65 will need to save 12 times their pre-retirement income. By delaying retirement by just five years, to age 70, your savings estimate lowers to 8 times your annual income. This may be why an increasing number of Americans plan on delaying retirement or working during retirement. A majority (51 percent) of workers surveyed in 2016 by the Transamerica Center for Retirement Studies said they plan on working during retirement. Some ideas to consider now These are sobering realities, but there are actions you can take to be in a better position during your golden years. Contribute as much as possible every year to your employer provided retirement plans. With a 401(k) pretax retirement plan, for instance, up to $18,000 can be contributed each year, or $24,000 if you are age 50 or older. Contribute as much as possible to a Traditional or Roth IRA every year, up to the $5,500 maximum, or $6,500 if you are age 50 or older. If available, contribute as much as possible to a health savings account (HSA), which can be used to offset medical expenses, up to $3,400 a year, or $4,400 if you are age 55 or older. If you’d like to review your tax-advantaged retirement strategy, call to schedule an appointment. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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Budget issues force IRS closures

Posted on Jun 4, 2013

The IRS will close all of its operations on June 14, July 5, July 22, and August 30, 2013. The current budget situation, including the sequester, has made these closures necessary; IRS employees will be furloughed without pay on these days. Taxpayers should continue to file returns and pay any taxes due as usual, though on these days the IRS will not answer toll-free hotlines or accept or acknowledge receipt of electronically filed returns. Electronic deposits of employment and excise taxes must be made as usual....

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Tweet shorts

Posted on Mar 13, 2013

* The “No Budget, No Pay Act of 2013,” signed into law on February 4, suspends the federal debt limit through May 18. * The “No Budget, No Pay Act of 2013” gives members of Congress until April 15 to pass a budget, or their pay will be suspended. * The March 1 filing deadline for farmers and fishermen has been extended to April 15 due to the late start in this year’s filing season. * March 15 is the deadline for calendar-year corporations to file their 2012 tax returns. * March 15 is the deadline for corporations to elect S corporation status for 2013. * The IRS reminds those who split the tax payment on a 2010 Roth conversion that the second half is due on 2012 tax returns. * Now that estate and gift tax rules have become “permanent,” you should review your estate plan for any necessary adjustments. * The IRS announced the inflation-adjusted alternative minimum tax exemption for 2013: $51,900 for singles and $80,800 for couples. * Itemized deductions for 2013 will be limited if your adjusted gross income exceeds $250,000 (singles) or $300,000 (couples). * Check for carryover items from prior years that could reduce your 2012 taxes — such as excess capital losses and gifts to charity. * Your top tax rate in 2013 will be 39.6% if your taxable income exceeds $400,000 ($450,000 for married couples). * You’ll pay 20% on long-term capital gains in 2013 if your taxable income exceeds $400,000 for singles or $450,000 for couples. * If you turned 70½ last year and didn’t take your first required distribution from your IRA, you must take it by April 1,...

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