Dillon Szmala, Financial Advisor

01/26/2024

Unless Congress acts, current tax rates and many provisions in the tax code are scheduled to expire at the end of this year.

One change may be to the Child Tax Credit, impacting families. 👨‍👩‍👧

As a reminder, the current credit is $2,000 per child (under 17), with income phasing out starting at $400,000 for couples.

Next year, the credit may return to the pre-TJIA (Tax Cuts and Jobs Act) level at $1,000 per child, and phaseout may drop to $110,000 for couples. 😮

The Child Tax Credit is just one potential change. Remember, tax rules can change without notice, and there is no guarantee that the treatment of certain rules will remain the same. This post is not intended as real-life advice, so you may want to review any specific questions about the TCJA with a tax, legal, or accounting professional. FMG created this content to provide insights into a topic and is not affiliated with a broker-dealer or investment advisory firm.🤝🏽💼

We’ll continue to share info as we get closer to the changes taking effect. Follow us if you want to stay updated! 🔔📲

01/19/2024

Unless Congress acts, current tax rates and many provisions in the tax code are scheduled to expire at the end of this year.

One change may be to the Child Tax Credit, impacting families.

As a reminder, the current credit is $2,000 per child (under 17), with income phasing out starting at $400,000 for couples.

Next year, the credit may return to the pre-TJIA (Tax Cuts and Jobs Act) level at $1,000 per child, and phaseout may drop to $110,000 for couples.

The Child Tax Credit is just one potential change. Remember, tax rules can change without notice, and there is no guarantee that the treatment of certain rules will remain the same. This post is not intended as real-life advice, so you may want to review any specific questions about the TCJA with a tax, legal, or accounting professional. FMG created this content to provide insights into a topic and is not affiliated with a broker-dealer or investment advisory firm.

We’ll continue to share info as we get closer to the changes taking effect. Follow us if you want to stay updated!

01/12/2024

How will your taxes and estate strategy be impacted when the Tax Cuts and Jobs Act (TCJA) sunsets at the end of this year? 🧐

If you don’t know, you may want to start familiarizing yourself with the potential changes to understand how they may affect you.

There’s a mixed bag of changes on the horizon, some perhaps unfavorable but others more positive! 👏👏

You can deduct mortgage interest on up to $750,000 of qualified debt. In 2025, the rule is scheduled to change, and you may be able to deduct mortgage interest on up to $1,000,000 of qualified debt AND an additional $100,000 of eligible home equity interest debt.

Remember, tax rules can change without notice, and there is no guarantee that the treatment of certain rules will remain the same. This post is not intended as real-life advice, so you may want to review any specific questions about the TCJA with a tax, legal, or accounting professional. FMG created this content to provide insights into a topic and is not affiliated with a broker-dealer or investment advisory firm.

If you’d like to learn more about the potential implications for your family, connect with us anytime.

01/05/2024

Will your taxes and estate-planning strategy change when parts of the Tax Cuts and Jobs Act expire❓🧐

Now is the time to understand how the sunsetting of the TCJA in 2025 may impact your financial strategy.

There’s a mixed bag of changes on the horizon – some considered favorable, others perhaps less so. 🙌 Here’s an example.

NOW: The State and Local Tax Deduction (SALT) is currently capped at $10,000 annually.

In 2025: There may be no cap for deducting state and local taxes, but deductions are expected to be phased out at higher income levels ($313,800 for couples)

Remember, tax rules can change without notice, and there is no guarantee that the treatment of certain rules will remain the same. This post is not intended as real-life advice, so you may want to review any specific questions about the TCJA with a tax, legal, or accounting professional. FMG created this content to provide insights into a topic and is not affiliated with a broker-dealer or investment advisory firm.

If you’d like to learn more about the potential tax and estate implications for your family, connect with us anytime.

09/20/2023

In the past ten years, the amount of money held in money market accounts has fluctuated. However, looking at the chart below, you see something interesting that happened in the last two years.

Cash being held in retail money market funds has climbed to nearly $1.6 trillion. When I see this there is only one culprit, fear. Fed Chair Jerome Powell's recent speech at the Jackson Hole summit had everyone—including the markets—on pins and needles. He hinted that more interest rate hikes may be needed, and news unsettled the markets a bit.

What will happen to the money in retail money market funds if interest rates start to trend lower next year? Will it stay put, or seek greener pastures?

How have you been feeling about the recent economic volatility? What economic report, if any, do you think will unsettle the markets in the coming weeks?

09/18/2023

We often find that clients have thousands of dollars located in old, inactive 401(k)'s. This money simply isnt being accounted for in someones plan. In fact, 1 in 5 Americans are in this scenario. Below are some ways of finding this money

How to find a lost 401(k):
1. Contact your old employer's HR department
2. Check old 401(k) statements for account details
3. Use look-up databases like the National Registry of Unclaimed Retirement Benefits or the National Association of Unclaimed Property Administrators
4. Check the Department of Labor's abandoned plan database

Once you've located your plan, you can:
🔁 Request a direct rollover to your new employer's plan
💼 Transfer the funds into an existing IRA
🤔Cash it out (but beware of taxes and penalties)


Source:

Rolling over an old 401(k) into a new plan can be a pain, but it's typically worth the hassle.

09/14/2023

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08/10/2023

This piece presents an overview of fundamental steps to consider when a loved one passes.

An overview of some fundamental steps when a loved one passes.

07/31/2023

I am excited to announce that after careful consideration, I have decided to join the team at Valent Wealth. In partnership with Bull Harbor Capital, we are an independent full service wealth management and financial planning firm.

I appreciate everyones unwavering support over the years and I couldn’t have gotten here without the help of my family, friends, and clients. I look forward to exploring all of the new opportunities this career move has to offer, and continuing to grow with all of you!

12/08/2022

Stocks surged higher in November on rising optimism that the Fed would slow down future interest rate hikes. Will we see a change in December?

Monthly Market Insights | December 2022 U.S. Markets Stocks surged higher in November on rising optimism that the Fed would slow down future interest rate hikes. The Dow Jones Industrial Average gained 5.67 percent, while the Standard & Poor’s 500 Index picked up 5.38 percent. The tech-heavy Nasda...