Andy | Saving to Invest

Final House and Senate GOP Tax Reform Bill For Trump Tax Changes

House and Senate Republican (GOP) lawmakers have passed a reconciled/final bill 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 of nearly $1,500…

Tax Rate and Tax Brackets – Trump, House, Senate GOP vs IRS Tax Tables

See the latest tax tables and brackets for the current and upcoming tax year 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. The answer is that if the GOP tax…

Updated 401K, IRA Contribution Limits For 2021 vs 2022 Estimated Changes

The IRS has released its latest cost of living adjusted retirement plan contribution limits and qualifying income thresholds for 2021. The table below shows the recent year over year changes. I have also listed expected 2022 changes based on my research and recent inflation figures (which also resulted in a…

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

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…

Roth IRA Contribution and Income Limits plus Conversion Rollover Rules

[Updated with latest Roth IRA limits] The latest income phase out ranges for the deductibility of Roth IRA contributions are shown in the table below. Contribution limits have marginally increased over the last few years while income threshold limits to get a contribution tax deduction have been adjusted in line…

Maximum 401K Contribution Limits

[Updated with latest IRS 401k limits] The IRS has now released its latest annual 401k limits. The table below shows what the contribution limit trends have trended over the last few years at the individual/employee level. Click here for the full set of 401K, Roth IRA and Traditional IRA Contribution Limits…

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

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…

Do Republican Health Care Changes to Repeal Obamacare Impact You?

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.…

2017 Income Tax Withholding Allowance

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…

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

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…

Helpful Tips for Couples, Spouses and Partners to Avoid Financial Disagreements

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…

Does IRS Tax Transcript Show My Refund Processing and Direct Deposit Date And What Does N/A Mean

Reviewing their free IRS account tax transcript is a technique a lot of folks attempt to use to get an update on their tax return processing and refund status; particularly if they are not getting information (or see no bars) from the standard WMR tool or IRS2Go refund status tracker…

2017 and 2018 Healthcare Debate Continues – Coverage, Premiums, Tax Credits and Penalties – Obamacare vs. AHCA (House bill) vs. BCRA (Senate bill)

Jun 26 - The Senate has announced their health care plan - the BETTER CARE RECONCILIATION ACT (BCRA) - which is in line with the house bill described in the previous update, with key changes being made to appease more moderate Republicans. NPR.org has a nice summary comparing Obamacare, AHCA (House bill)…

Should I Refinance My Mortgage and Do I Qualify

With interest rates on 30 year fixed-rate mortgage loans below 4%, the lowest level since the 1950s, many borrowers are keen to refinance their home loans and other mortgages. By any long-term measure, current rates are a great deal and could result in tens of thousands of dollars in savings…