Tax Planning
2019 Tax Update
2019 Tax Update Includes Increased Retirement Contribution Limits While it seems the changes from 2018 to 2019 will be minor, the great news is the IRS has finally increased IRA, 401(k), and other retirement account contribution limits. IRA Contribution Limits The contribution limit for Traditional and Roth IRA accounts has increased to $6,000. The…
Read More2018 Tax Reform: Here’s What You Need to Know
The new tax law passed by Congress should send tax preparers into a scramble, helping taxpayers understand how 2018 will be different from 2017. Early estimates and projections show the largest impact will not be from the changing tax rates, but instead from the new tax deduction rules. Specifically, the doubling of the standard deduction…
Read MoreSavings for the Grandkids’ College Education
According to U.S News and World Report, in a recent survey, more than 50% of grandparents are saving or plan to start saving for grandchildren’s college expenses. Most of them chose to save into a 529 college savings plan that provides tax deferred growth and tax free withdrawal for education purposes. 529 college savings plans are free from federal income taxes until the money is withdrawn for qualified educational spending.
Read MoreTax Savvy Giving
At First Pacific Financial, we often evaluate these types of strategies for our clients. There can be many factors to consider in your individual situation and these should be carefully understood and evaluated before making this a long term strategy.
Read MoreWhat is a Charitable Remainder Trust and when would I consider using it?
The first reason you would consider a CRT is because you are charitably inclined. This vehicle can provide a way to give, when you might otherwise be unable to do so. In addition, if you are considering an action that has a significant tax liability and/or you need to generate income, this type of trust can provide certain advantages.
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