PLANNING FOR RETIREMENT?
Here’s What the New Tax Plan Means for You
Last December, a new tax bill was signed into law, ushering in the most significant tax changes our country has seen in 30 years. While the new tax plan will not impact the current tax season, we can see changes on the horizon, and some elements of the new tax law are already being felt today. Employers have modified their withholdings in order to adapt to the new tax brackets, and workers will see that reflected in their paychecks. For most Americans, the greatest impact they will feel from the tax changes will be caused by the new tax brackets. While there are still seven tax brackets determined by income, the marginal tax rate has been greatly lowered for most of these brackets. For example, this will be the last year a married couple with an income of around $50,000 will be taxed at 10 and 15 percent. The new tax law drops their rate to 10 and 12 percent. Three percent may not sound like much, but it can result in thousands of dollars in savings. These lower rates can go farther than just putting more money in your pocket — they can also impact the way we plan for retirement. Today, Roth conversions are more beneficial than ever, thanks to the overall lower rates. If you’ve put off converting an IRA to a Roth IRA now is the time to convert.
Also Roth IRAs and Roth 401(k)s offer tax-free earnings since you pay taxes on the money you put into the account, not what you take out. This means when you’ve reached retirement, you can enjoy tax-free distributions to help maintain your dream lifestyle. Currently, the maximum Roth IRA contribution is $5,500 for those under 50 and $6,500 for those who are 50 and older. However, if you have a traditional IRA, you
can convert it into a Roth IRA with no income limits. While Roth conversions are certainly not a one-size-fits-all solution, thanks to the lower tax rates, Roth conversions have the potential to help many retirees enjoy a fulfilling retirement. Curious about how the new tax plan will impact your retirement strategy? Give us a call at 904-232-8760! We’ll be happy to chat about the changes and help you determine the best way to plan for your retirement.
Sudoku
Sure, your showoff pal can wrap a tater tot with a piece of bacon and call it “The Daniel,” but you can take it a step further. Prepare a couple batches of these savory snacks for your Super Bowl party or the next family get-together. Snag a few for yourself before they disappear!
INGREDIENTS
• 2 cups frozen tater tots, defrosted • 1 ounce sharp cheddar, cut into 1/4-inch squares
• 4 slices bacon, quartered • 1/4 cup brown sugar • 1 tablespoon chopped parsley
DIRECTIONS
1. Heat oven to 400 F. Line a baking sheet with parchment paper and set aside. 2. Press a cheese square into each tot, then wrap with a piece of bacon. Dredge each tot in brown sugar. 3. Place tots seam side down on baking sheet. Bake for 20–25 minutes, using metal tongs to turn halfway through. 4. Garnish with parsley, if desired, and serve immediately.
Solution
(Recipe inspired by ThisGrandmaIsFun.com.)
2 LOCATIONS TO SERVE YOU! Jacksonville & Fleming Island.
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