Retirement and Tax Season
What You Don’t Know Can Hurt You
Investment Gains Just like during your working years, any gains you make on investments outside an IRA or a 401(k) will be subject to tax. In addition to being aware of what money is being taxed, retirees should be informed that since the Tax Cuts and Jobs Act went into effect for the 2018 tax year, there have been numerous changes to the tax code. For the most part, these changes mean most taxpayers in Florida will pay less in taxes after filing their 2018 returns. However, it’s important to keep in mind that the income ranges for the seven tax brackets have been adjusted for inflation, the personal exemption was eliminated, and the standard deduction for married couples filing a joint return jumped from $12,700 in 2017 to $24,000 in 2018. Also, if you are age 65 or older, depending upon your filing status, you get an additional $1,300 to $1,600 applied to your standard deduction. Depending on your situation, these changes could affect your tax plans during retirement. Though taxes can be complicated and frustrating, it’s important for everyone, especially retirees, to understand what’s going on with their money. Call 904-232-8760 today to learn how to protect your retirement and survive tax season.
Federal income taxes are most retirees’ largest expense in retirement. The Nationwide Retirement Institute found that 70 percent of recent retirees entered retirement without key tax-planning knowledge. For example, many retirees don’t realize that up to 85 percent of their Social Security benefits can be included as taxable income, depending on their modified adjusted gross income (MAGI). This can lead to some pretty unpleasant surprises come tax time.
In order to avoid such surprises, retirees should make note of what income is being taxed during retirement. Retirement Plan Withdrawals Withdrawals you take from your tax-deferred qualified retirement plans will be included as income and taxed accordingly. Those plans include traditional or rollover IRAs, 401(k)s, 403(b)s, and other tax-deferred employer plans. The amount of tax you pay on these distributions depends on your current year tax bracket. Taking very large withdrawals can easily push you into a higher bracket. Also, if your company offers you a “lump-sum” pension option, you are eligible to roll over the pension into an IRA and control distributions. Talk to us to determine if and how you might be able to avoid taxes on your pension.
SUDOKU
INGREDIENTS
• 12 whole juniper berries • 2 bay leaves, crumbled • 1/2 teaspoon ground ginger • 2 pounds ice • 1 5-pound beef brisket, trimmed • 1 small onion, quartered • 1 large carrot, coarsely chopped • 1 stalk celery, coarsely chopped make sure brisket is fully submerged and brine is stirred. 4. After 10 days, remove brisket from brine and rinse under cool water. In a large pot, cover brisket, onion, carrot, and celery with water. Bring to a boil, then reduce heat to low and gently simmer for 2 1/2–3 hours. 5. Remove, slice across the grain, and serve.
• 2 quarts water • 1 cup kosher salt • 1/2 cup brown sugar • 2 tablespoons saltpeter (potassium nitrate) • 1 cinnamon stick, broken into large pieces • 1 teaspoon mustard seeds • 1 teaspoon whole black peppercorns • 8 cloves garlic • 8 whole allspice berries 1. In a large stockpot, combine water, garlic, and all herbs and spices to make brine. Cook over high heat until salt and sugar are fully dissolved. Remove from heat and stir in ice. 2. Once water temp reaches 45 F, place brisket in a 2-gallon zip-close bag, pour in brine to cover, lay flat in a large container, and store in fridge. 3. Brine for 10 days, checking daily to DIRECTIONS
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2 LOCATIONS TO SERVE YOU! Jacksonville & Fleming Island
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