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IRA Archives - Sharkey, Howes & Javer

Tax Smarts

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As we settle into the new year and resolutions roll around once again, there’s a good chance that “figure out my finances” makes its way back to the top of the list. Something that you could consider doing differently this year is proactive tax planning instead of reactive tax planning. Here are four ways you could get ahead of your taxes in 2017:

1. Take the Surprise Out of Taxes
If you have a close estimate of the income you will receive in 2017, print a two-page 1040 form and start working through a very basic tax calculation. You can print other forms as needed depending on the complexity of your tax return. Estimate income and deductions to the best of your ability. Compare the estimated Federal tax liability with your current Federal withholding to determine if you are over- or under-withholding, and make proactive adjustments at the beginning of the year. We suggest the same exercise with your state tax forms. Note: Although the 2017 1040 is not yet available, the 2016 1040 will give you a useable guideline.

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Retirement Plans for Small Businesses

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Small business owners have several options for choosing the right retirement plan. When deciding which plan is best, factors you should consider are how many employees you have and how are they paid? How much do you want to contribute to the plan for yourself or your partners, as business owners, as well as for your employees? Do you want to use the plan to attract future employees or for its tax advantages? Three retirement plans to consider are a SEP IRA, Simple IRA, and 401(k).

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Retirement Savings 101: What’s the Difference between a Roth 401(k) and a Traditional 401(k)?

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Did you know many employers offer a traditional 401(k) and a Roth 401(k)? Learn the difference between the two to see what’s right for you.

Last week we covered the difference between Roth and Traditional IRAs. This week we look at the differences between Roth and Traditional 401(k)s.

Let’s start by defining the 401(k)…

401(k)s are retirement savings plans sponsored by an employer. Employees can defer all or part of their paycheck to the plan, as long as you are within the IRS limits. You can think of it as a deferred salary. Many companies will also match contributions to the plan.

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Retirement Savings 101: What’s The Difference Between a Roth IRA and a Traditional IRA?

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The world of retirement savings can be confusing. Which option is best to help you move towards your goals? What is the difference between all of the retirement savings options? Over the next few weeks, we try to clear the muddy waters and help you gain an understanding of what retirement savings plan might be best for you.

Today we start with IRAs…

IRAs, Individual Retirement Accounts, are popular tools to save for retirement. The type of IRA you select can affect your long-term savings. It’s important to understand the various types of accounts to select the best one for you.

The main difference in Traditional and Roth IRAs comes down to when you pay income taxes. For Traditional IRAs, you pay taxes when you withdraw money in retirement. With a Roth IRA, you pay taxes on the front end, but no taxes when you withdraw.

Let’s start by looking at a Traditional IRA…

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