Category Archives: Tax Related

Tax Savings Ideas You Can Do NOW To Save Last Year (2017) Taxes – Part 2 – THE SEP – Simplified Employee Pension

Last week we started our tax season discussions here (- the HSA) with a favorite “Last Year” tax savings ideas that can be done this year …

This week another super saving idea … Think of this as an IRA on steroids – due to high limits and ample flexibility!

The SEP – Simplified Employee Pensionseptember-706937__340

Here are just a few reasons why we love the SEP for the correct situation:

  • Offset 1099 or other consulting like – non W-2 income in a pre-tax form
  • An IRA can be used to accept a SEP contribution in many cases – no new account needed
  • Can be used in conjunction with a 401k – Only need 1099 income – High Contribution limits apply
  • High Maximum Deferral amount $54k – yes that is correct FIFTY FOUR THOUSAND of pre-tax dollars as long as that is no more than 25% of Adjusted Gross Income
  • Can make SEP contributions even after RMD (Required Minimum Distributions) Begin
  • Can make your contribution even after the regular tax deadline if you file an extension – This really makes a SEP valuable and give us plenty of time to make the contribution again for LAST year’s tax savings

There are certain limitation and restrictions as mentioned, so don’t just make a contribution unless you are sure it will work for you … or just reach out to us!

Have a Great “SEP” Tax Savings Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

Taxes … the 1099, Tests – Re-Tests … Tennis … Enjoy Your Weekend

A large wave of 1099’s have just been released and are on their way to your mailbox even if you have electronic delivery of all other items…

While less frequent than in past years, corrected 1099’s do occur….

We would be careful in filing your taxes at least until the first corrected round occurs… which will be a few weeks!

Test and Re-Test

The Capital Markets are trying to figure out what level they should be at. As mentioned earlier this week, we got WAY ahead of ourselves…

There have been some silly products that have also caused extra movement in the capital markets as well.

While it is hard to believe, given the journey, we are currently very near where we started the year, BUT because we went up too far and now back down AND because it is human nature for un-comfort to feel much stronger than comfort, it feels much worse.

2-8-18 SP X


More on this in greater detail next week.

No travels this weekend as the Tournament is here.. yaa.. our own bed and home cooked food!!

Have a Great Friday and Wonderful Weekend…. See ya 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.




Whole Enchilada of Tax Forms Due this week!

Welcome to the biggest tax form week of the year.

While more money moves (mostly towards the IRS) in April than any other month, this week is the Big Enchilada of Tax Forms …

Here is what tax forms to Expect this week – Employers, here’s what needs to get processedUncle Sam

This from the nice IRS Calendar portion of their site .. Yes we may be one of the few to say nice, but generally we find them fair and helpful!… IRS that is

  • Wednesday, January 31, 2018 Individuals: File your tax return if you did not pay your last installment of estimated tax by Jan 16th (see Form 1040-ES)
  • Wednesday, January 31, 2018 File Form 720 for the fourth quarter of 2017.
  • Wednesday, January 31, 2018 Furnish Forms 1098, 1099 and W-2G to recipients for certain payments during 2017. Furnish Form W-2 to employees who worked for you during 2017.
  • Wednesday, January 31, 2018 File 2017 Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3 and W-3SS with the SSA whether you file using paper forms or electronically.
  • Wednesday, January 31, 2018 File Form 1099-MISC with IRS if you are reporting nonemployee compensation.
  • Wednesday, January 31, 2018 File Form W-3 with Copy A of all Forms W-2 issued for 2017.
  • Wednesday, January 31, 2018 File Form 730 and pay the tax on wagers accepted during Dec 2017.
  • Wednesday, January 31, 2018 File Form 2290 and pay the tax for vehicles first used in Dec 2017.
  • Wednesday, January 31, 2018 Deposit payroll tax for payments on Jan 24-26 if the semiweekly deposit rule applies.
  • Wednesday, January 31, 2018 Deposit any FUTA tax owed through Dec 2017.
  • Wednesday, January 31, 2018 File Forms 940, 941, 943, 944 and/or 945 if you did not deposit all taxes when due.

We have highlighted for your (and our) convenience, the most common forms !

Have a Great “Massive Tax Form” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.



Q 1 2018 Newsletter Video Audio Podcast Review By John Kvale

Welcome to our Video and Audio Podcast Review of our Q 1 2018 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 here for 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!


Q 1 2018 Newsletter


Medicare – IRMAA – Means testing

In this long overdue article we dig deep into the background of Medicare and the means testing of recent years. IRMAA, Income Related Monthly Adjustment Amount – AKA higher premiums thresh holds are analyzed and presented for 2018.

In the best part of this article we discuss what to do in order to lower your higher means testing Medicare Premiums.

Have We Already Had a Bear Market?

A Bear Market is generally defined as a drop of 20% or greater. In late 2015 – 2016 almost every asset category except the most popular dropped by 20%. In this article we discuss why this may be good news for the future of the current market.

VIX – A Fear Gauge Goes to Sleep

VIX a volatility (fear measure) rises when fear is rampant and slowly drifts lower when fear is absent. Over the last 26 years the VIX index has closed below 10 a total of 9 times. In 2017 this fear index closed below this level 52 times. We warn not to take these placid seas for granted.

First Time Personal Reflections

In this off the cuff article, we give thanks for all the wonderful things we have, what good things have come during the year and a general Thanks To All of YOU our clients and friends.


Ready or not … 2018 here we come!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

December 2017 Podcast Video, Financial Planning and Capital Market Update- By John Kvale

Here is our December 2017 Monthly review. If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format.

So Long 2017 … Hello 2018 .. Nice to see you!

December 2017 Video

Financial Planning Tip (s) –

You have been IRMMAAtized – Options for Relief

In our post, here and here we discuss the Medicare Means testing levels, both historic and what we are faced with in 2018.

Due to the faster lower Tiers of income, the Social Security Administration has casted a wider net for all of us.

Here are the new levels, again from our post AND in even GREATER details in our Q1 2018 Newsletter.

2017 V 2018 Medicare IRMAA levels

A life event change may create relief – Life events not limited to the following-

  • Marriage
  • Divorce/Annulment
  • Death of Your Spouse
  • Work Stoppage
  • Work Reduction
  • Loss of Income-Producing Property
  • Loss of Pension Income
  • Employer Settlement Payment

Please see our Q1 2018 Newsletter for detailed instructions on how to get relief from these faster grabbing surcharges.

Personal Spring Cleaning in the WinterUnsubscribe monitor-608241__340

Personal Reminder Email Tip

In our post mid-month here we discussed cleaning your emails to lower the Tidal Wave of daily emails.

After almost four weeks we are down to a trickle.

What was most interesting were the different experiences of who was up front and nice about the “Unsubscribe” request and who was down right dirty about letting us off their list. Surprised and disappointed with some companies.

Capital Market Comments

VIX – Fear Index Goes into Hibernation

We initially wrote in our Newsletter article and Blog post here, the VIX went to sleep … after another few closes below 10, we are coining it “Hibernation”

VIX as of 12-15-17

From 1990 to 2016 this Fear index closed below 10 a total of 9 times. During the year 2017, it has closed below that level 52 times and counting !!

Wow … Hibernation!

Interest Rate Increases

Just few years ago, with former FOMC (Federal Open Market Committee) chair Ben Bernanke running the show, a miscalculated mention of a pending interest rate increase threw the Capital Markets into a tail spin – and that was just a mention of one small .25% increase. WOW-

When the history books are written on this period of time, FOMC members “Listening” to markets may be prominent, and possible reason for success.

In 2017, the FOMC raised rates 3 times with very little market disruption. They are on record for 3 more in 2018. The best part of this, market participants are not throwing a hissy fit and seem to be welcoming the increases.

Today, we think NOT increasing the rates as forecasted would cause more harm than increasing – exactly the opposite of just a few years ago. Way to pivot FOMC officials.

2017 Fed Funds Rate Bar Graph


Happy New Year!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

Top 10 Posts You May Have Missed in 2017

This is our 148th … all original, all in-house, post of the year … we will have one more on Friday!

With over 3200 different visitors, one of you MAY have missed something good.

Not to worry, we scrolled back through 2017 and are happy to announce the following … Drum Roll please …….

 “Top 10 Posts of 2017” by Popularity and Pertinence- Enjoy

Job Change and Retirement Checklist – January 2017^D930EF057D0BC16336F1561C33AD98DBA5725D9F6C77E7D905^pimgpsh_thumbnail_win_distr

In this post we discuss 10 important, handy and often forgotten items to grab at retirement or job change.

Will the European Union Survive – February 2017

Recounting thoughts from a few terrific speakers at a national convention in the late Winter, we posted their comments and our thoughts, only to be totally lit up from both positive, and negative thoughts of the EU Survival.

What to do if you overfunded your 401k? – April 2017

In this article, fresh off tax season we recount how you can accidentally overfund your 401k, what to do to fix it, and the end result if a fix is not possible (hint, not the end of the world!)

Why you need to know your credit Score – May 2017

In an updated post from several years prior, we discuss the trends in technology being used to cross reference high risks from a company standpoint – In English, your credit report is being used more often for risk analysis. Keep it clean, and here is how to check it, and protest.

How to share your Financial Life without Giving up control –  May 2017

Sometimes it may be a desire to let your children or other family member know your situation, other times it may be just plan necessity .. either way it can be uncomfortable opening up your financial life. In this article we discuss how you can open as little, or as much, in a professional, comfortable, soft way.

Equifax Breach and What to Do about it – September 2017

Stay calm! It may seem like a distant memory, but when news broke of the large Equifax data breach, many were tip toeing to the edge of the window seal.  In this timely post, we discuss the breach, staying calm, and what to watch for moving forward!

Found Money – Log into that Old 401k Account – October 2017

With multiple parties having “Found” money in old accounts, especially former 401k accounts, we remind to take a moment and check out an old account, it might just make your day!

Social Security Increase for 2018 – October 2017

Upon the announcement of an increase in Social Security, we shared the news, and the background, along with the calculations and index for those skeptics.

Medicare Part B Means Testing – December of 2017

In this post we discuss the Means testing of Part B Medicare background, thresholds, and coming changes in 2018.

IRMMA Letter, and Solutions – December 2017

In a follow up to our Medicare Part B discussion and a preview to our coming Newsletter we take a deep dive into an  IRMAA (Income Related Monthly Adjustment Amount) our new term of IRMMAtized and more importantly, what to do about it, and helpful hints on lowering your future premiums, along with the links to forms you will need.

Have a Happy “Cliff Notes Posts” 2017 Review Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.