Category Archives: Tax Related

ESTIMATED Dates of Tax Documents … Friday

While it only seems like yesterday that we finished last years (2020) tax returns, that light at the end of the tunnel is an oncoming 2021 due date….

As such, here are some of the delivery dates of tax forms.

Timing of Available Tax Documentation

  • Delivery of 1099s: Currently, we expect the first wave of 1099s to begin posting online on January 21, 2022 with Advisor and client notifications going out shortly after. Estimated dates for the waves are below:
 Target Delivery Date*Details
Wave 1Close of business January 21, 2022No holdings subject to reallocation (ex. RICs, REITs)
Wave 2Close of business February 4, 2022Low risk for reallocation; income reallocations finalized through January 29th
Wave 3Close of business February 11, 2022Clients with finalized income reallocations received from January 30th through February 3rd
Wave 4Close of business February 11, 2022Remaining clients
  • Correction Cycles - Begins March 3, 2022 and occurring every 2 weeks through April 14, 2022

There were a few questions this week on these, hence the heavy on a …….. FRIDAY!

Have a Great Day and a Great Weekend… stay warm if you are in our neighborhood, IF YOU CAN… talk next week!

John A. Kvale CFA, CFP

  • Founder of J.K. Financial, Inc.
  • A Dallas Texas based fee only
  • Financial Planning Total Wealth
  • Management firm.
  • jkfinancialinc
  • street-cents

New Uniform Life Tables Gives RMD’s a Slight Break … You are a Few Years Younger in the IRS’s Opinion! YAY

As the calendar turned to 2022, those that are requited to take RMD’s (Required Minimum Distributions) from their IRA and or other qualified taxable accounts, became a few years younger in the eyes of the IRS! YAY !

New Uniform Table Makes You Younger

If you did not feel younger after the turn of the calendar to 2022, don’t feel bad, the IRS sees you as younger … maybe living 10% longer….

What Happened?

The IRS updated their mortality tables as can be seen HERE in this terribly formatted release:

III. Updated Life Expectancy and Distribution Period Tables

The life expectancy and distribution period tables in these regulations have been developed based on mortality rates for 2022. These mortality rates were derived by applying mortality improvement through 2022 to the mortality rates from the experience tables used to develop the 2012 Individual Annuity Mortality Basic Tables (which are the most recent individual annuity mortality tables). As was the case in the proposed regulations, the separate mortality rates for males and females in these experience tables, which were based on the 2000-2004 Payout Annuity Mortality Experience Study,[11have been projected from the central year of 2002 using the respective mortality improvement rates from the Mortality Improvement Scale MP-2018 for males and females.[12The mortality table in these regulations was developed by blending the resulting separate mortality rates for males and females using a fixed 50 percent male/50 percent female blend.

What does it mean?

All other things being relatively equal, you will not have to take as much out/(pay taxes on) the distributions of our qualified account, because the amount may be less … YAY … thereby making you younger in the eyes of the IRS, because we are all living longer!

So we are younger, don’t have to take as much of and RMD, which means less taxes? Yep… sign me up!

Have a Great ‘Living Longer, Less Taxes” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Short Day, Long Holiday Weekend! , Great Topics Coming … Why Your RMD May Be Less than Last Year? … Back to Basics Part 2 … Inflation Analysis …

Long time followers have heard of times when the subject matter gets tough… Some Call it Writers Block, think it more Writers Fatigue… haha

Maybe it is the turn of the calendar… maybe excitement from new research and technology we have acquired…. No matter, the post subject glass is VERY full! Looking forward to delivering to you!

Short Day, Long Weekend

With most of our gang out at noon today, we will be following suit for the safety of fellow patrons on the streets!

Early release is due to the Monday honoring of MLK day, which means Capital Markets, Banks, Government entities and our office will also be closed… Enjoy!

Not to worry, with LOTS to talk about we look forward to sharing!

Have a Great Friday and super long Holiday Weekend!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

ES Payments for Q4 of 2021 Due On Tuesday January 18th Day AFTER Bank/Market Holiday

Happy Friday …. We made it safely to the end of the first full week of the new year! yay

Early this week the following email from the IRS hit our inbox in timely form, so we wanted to share!

Issue Number:    IR-2022-03

Inside This Issue


IRS reminder to many: Make final 2021 quarterly tax payment by Jan. 18; avoid surprise tax bill, possible penalty
 

WASHINGTON − The IRS urges taxpayers to check into their options to avoid being subject to estimated tax penalties, which apply when someone underpays their taxes. Taxpayers who paid too little tax during 2021 can still avoid a surprise tax-time bill and possible penalty by making a quarterly estimated tax payment now, directly to the Internal Revenue Service. The deadline for making a payment for the fourth quarter of 2021 is Tuesday, Jan. 18, 2022.

The hotlink from the IRS email is hot and will take you to the IRS website for electronic payment, which we HIGHLY suggest you use.

Between snail mail slowness and the tremendous IRS back logs, sending a check in the mail may lead to a very delayed payment an even a loss of payment which the IRS would frown upon.

Have a Great “ES Friday Reminder” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents


Q1 2022 J.K. Financial, Inc. Newsletter … Video Audio Podcast Review ! By John Kvale CFA, CFP

Welcome to our Video and Audio Podcast Review of our Q1 2022 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.

Click the Download button below, for a direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page

Let’s get going! We hope you enjoy!

Q 1 2022 Newsletter

(YouTube)

Anatomy of a Slowdown/Recession

In our main article, we review the last three drawdowns/slowdowns/recession for examples of how fast they occurred and the extremely fast recovery as can be seen by the main graph below.

We are not calling for a major slowdown/recession or the like, but we wanted to remind ourselves as well as everyone else, the last three drawdowns were not normal.

Longer drawdowns are the norm, and in the Newsletter Article we also go deeper into the Great Financial Crisis of 07-09, which was also not normal… it was much larger and much longer than the normal.

The past decade and a half have had it’s scary moments, but they did not last very long and were quickly attacked by the FOMC (Federal Open Market Committee) to give support in the system, fortunately very successfully. This may not always be the case, hence a reminder of the Umbrella use during sun shining times!

New Retirement Contribution Maximums, Best Practice, Tips and Tricks

The new retirement maximums are out at the IRS Website .

Again in our Newsletter article we remind those of smooth contributions throughout the year, UNLESS you have knowledge that may have you severed from your 401k some time during the year, in which a neat trick is to accelerate you contribution level in order to max that 401k out before you leave!

IRAs2022202120202019
401(k), 403(b), Profit-Sharing Plans, etc.2022202120202019
Annual Compensation305,000290,000285,000280,000
Elective Deferrals20,50019,50019,50019,000
Catch-up Contributions6,5006,5006,5006,000
Defined Contribution Limits61,00058,00057,00056,000
IRA Contribution Limit$6,000$6,000$6,000$6,000
IRA Catch-Up Contributions1,0001,0001,0001,000
Traditional IRA AGI Deduction Phase-out Starting at2022202120202019
Joint Return109,000105,000104,000103,000
Single or Head of Household68,00066,00065,00064,000
SEP2022202120202019
SEP Minimum Compensation650650600600
SEP Maximum Contribution61,00058,00057,00056,000
SEP Maximum Compensation305,000290,000285,000280,00

We hope you enjoy … talk to you in 2022!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

No Tax Law Changes for 2021, Same as 2020 … Last Minute Shoppers Watch Out, New Cyber Email

Of coarse …. the keyboard is calling even while out of the office with the 14 year old….

Felt this very important, and the WiFi is pretty good at this location!

Will keep it short, just two important items to tell you!

Washington Goes Home – No Tax Law Changes for 2021 – All Bets Off for 2022

Late last week it was agreed that the House and Senate would adjourn for the year, pushing any tax law changes that you may have heard (there were A LOT… remember often noise) as a 2022 issue!

With some new research ears on the ground in Washington, we hear there may be relief for the SALT tax cap … but never a guarantee on rumors…

On a personal self serving note, WHEW …. the Newsletter can finally not be smacked at the last minute and need to be completely redone … let our New York based printing presses begin … it is done! Yay

Last Minute Cyber Shoppers LOOK OUT – Clever Spam Email

In the span of two days the family received very clever spam emails from the following, each with an enticing link to click…. DO NOT BITE:

  • Home Depot Confirmation – But we did not make an on-line purchase and thankfully did not click on the hot link to the fake “Receipt”
  • Ace Hardware – This one was easier as we have not made any purchases at this establishment, BUT the format of the email was the same as the above HD
  • Best Buy – We have made Holiday purchases at BB (14 year old) but thankfully the email contained only “Best” and no Buy in the header, but the spam email address looked to come from BB

Have a Great “No Tax Changes and Don’t Click Bite” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

401k Plans Year 2022 Limits ($20,500 + $6,500 Catch Up), IRA Stay Same ($6,000 + $1,000 Catch Up) … Hmmm?

Great News for corporate and similar retirement plans as we get a 5% (actually 5.13%) bump in contribution limits…yay

Not sure what happened to the cost of living adjustments (COLA) for regular IRA’s, Roth’s and our catch up provisions as they are stuck once again at the same levels? Maybe they are only going to increase them every four years which puts an increase next year? Maybe they (IRS) does not want to confuse us? Either way, here are the updated rules from the IRS latest release for year 2022 !

The following from this IRS.GOV announcement and hot links are live back to the IRS website if you have deeper questions on each subject!

Deferral limits for 401(k) plans 

The limit on employee elective deferrals (for traditional and safe harbor plans) is:

  • $20,500 in 2022 ($19,500 in 2021 and 2020; and $19,000 in 2019), subject to cost-of-living adjustments

Catch-up contributions for those age 50 and over

If permitted by the 401(k) plan, participants age 50 or over at the end of the calendar year can also make catch-up contributions. You may contribute additional elective salary deferrals of:

  • $6,500 in 2022, 2021 and 2020 and $6,000 in 2019 – 2015 to traditional and safe harbor 401(k) plans

Deferral limits for IRA Roth 

For 2022, 2021, 2020 and 2019, the total contributions you make each year to all of your traditional IRAs  and Roth IRAs can’t be more than:

  • $6,000 ($7,000 if you’re age 50 or older), or
  • If less, your taxable compensation for the year

Traditional IRAs

  • Retirement plan at work: Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels.
  • No retirement plan at work: Your deduction is allowed in full if you (and your spouse, if you are married) aren’t covered by a retirement plan at work.

These charts show the income range in which your deduction may be disallowed if you or your spouse participates in a retirement plan at work:

2022

2021

Roth IRAs

This table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI as computed for Roth IRA purpose.

If your filing status is…And your modified AGI is…Then you can contribute…
married filing jointly or qualifying widow(er)< $204,000up to the limit
singlehead of household, or married filing separately and you did not live with your spouse at any time during the year< $129,000up to the limit

Have a Great “Year 2022 Retirement Limits Update” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Donald Capone aka “The Brain” Interviewed Again for his Expertise … Well Done “DC” !

Those of you that have ever been on a call with “The Brain” (aka Donald) ….and have heard him clicking the keyboard doing scenario analysis, such as exact tax implications post a move as well as detailed allocations and historical analysis, may wonder how he has all of this information at a moments notice….

The technical name is IRebal, a super powerful portfolio and investment tool! Donald has mastered the program, helped update the views and also given valuable input on the most important future direction of the tool…..

Donald “The Brain” Gets Flattering Publicity

This is directly from a major industry publication Wealth Management

“The landing page [of the dashboard] tells you all the info you need right off the bat … and allows you to make that quick decision on a visual level and ask yourself ‘do I need to dig into something deeper?’ That ‘yes’ or ‘no’ just did not exist in the old view,” said Donald Capone, the main portfolio manager in the two-advisor shop of J.K. Financial, Inc. based in Dallas. In the older version, getting to that step required him to run a seperate query. 

He said that the firm used the right term when calling the re-design of the interface a “modernization.”

“It definitely looks like you would expect it to now—it’s doing the exact same thing we’ve been doing with it from the beginning but now it matches with what expectations are of what software should look like these days,” said Capone. That should make it easier for new users to adopt the tool, he said. 

“It looks more inviting, less daunting,” he said of the new grid interface, which allows advisors to drill down more deeply right from the screen without losing their place and having to navigate back. There are also improved filtering features and simpler navigation, he said.

Well done Donald, just great!

Have a Great “The Brain Does It Again” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Holiday Venue Preview Video VERY NICE Redo, RMD Season, 401k Max Season, Birthday Boy, Friday …

Just by accident, over the weekend the family happened to end up at our Holiday Venue, Dallas Athletic Club (Recall November 20th from 3-5pm) and there was a soft opening of our venue to work the bugs out….

The official opening was Tuesday of this week as an email went out to the entire membership…

Hoping the weather will be nice AND if so, anyone that desires an indoor/outdoor venue, we have you covered… check out the video!

Nice!!!

Hope You Can Make it!

RMD – Required Minimum Distributions Commence

For the great majority that may begrudgingly take those RMD’s, tis the season, we will begin in the coming weeks!

We want to make sure we stay well ahead of any year end disruptions…

401K Maximization Season

In maybe a tit for tat from the afore mentioned RMD, now is a good time to review our retirement contributions for maximizations…

Let us know if you need help, we have systems set up for easy calculations…

Birthday Boy Weekend

Those followers know I frequently end my post with “Spend time with those important in your life, it goes fast!”

Tomorrow he turns 14 – Recall Crazy Over Halloween Family

Ahhhh…but today is a Friday… You know the drill from above…. Talk Next Week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

New Tax Laws … We are Reviewing … Friday

Did not want to scare you with the title of this post…. after all it is a Friday!

The initial new tax proposals have finally been released and we are on them…but not too deep as of yet!

For the record the initial proposal is not too terribly strict …. Certainly not near as strong as some of the headlines you may have seen!

Keep in mind, these are PROPOSALS and will be different once in law….. but we like to get a jump start on things for planning purposes… but NOT take actions until set in stone/law….

Friday

With a big week of posts, we will let you off easy … No Promises for next week!

Be good, be well, be safe, and Enjoy your Weekend and Friday!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents