Just when we happily said goodbye to a very long tax season due to the various extensions provided by the IRS, in comes a seemingly odd late tax form.
Form 5498 Reminder
Form 5498 is headed to some of our mailboxes over the next two to four weeks, again due to various extensions in the IRS filing due date, here are some of the reasons why:
- Rollover of a 401k or the like to an IRA – Most frequent
- Contribution to an IRA
- Contribution to a SEP
One of the most confusing parts of this form is that even though you may have made a qualified contribution for a prior year i.e. 2020, if you made that contribution in 2021, depending on the type of contribution the Form 5498 MAY show your contribution in year 2021.
Not to worry, the IRS knows there are frequently a seemingly miss match of years and accounts for this.
Here is the IRS information if you need further clarity.
FOMC Statement and Dot Plot Preview
Earlier this week the FOMC (Federal Open Market Committee) led by Jerome Powell, released their Economic analysis update along with a interview after a pre-prepared reading by Powell himself. The release, which also included the “dot plot”, which is an anonymous estimate by all the reserve members, voting and non voting on where they think the economy, is carefully scrutinized by all in the investment community.
We will take a deeper dive next week as there were some interesting cross currents post announcement and interview .. even with summer doldrums dragging along!
Newsletter Update
We are happily putting the final touches on the Newsletter, some of which partial pieces have been reviewed here, on our Blog, but with a longer Newsletter form we go into greater detail in our subject matters that we hope you will enjoy reading as much as we enjoyed creating.
Friday
Ahhhh…. But today is a Friday, for those that have been following… the rain has left us, the steam is subsiding from an abnormally fast early summer, the heat wave is reminding us why there is a saying in Texas:
“If you don’t like the weather, just wait a few it certainly will change!”
Have a great weekend, don’t forget to spend time with those special in your life and we will talk to you 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.
June 2021 Financial Planning and Capital Market Review – By John Kvale
Hello and Welcome to our June 2021 Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
BREAK IN – HOLIDAY PARTY NOVEMBER 20 FROM 3-5 AT DALLAS ATHLETIC CLUB
Hope you enjoy!
June 2021 Video
YouTube
Financial Planning Tip(s)
Why Not to Overfund a Retirement Plan
In this updated post from a few years ago, we remind how easily it is to overfund a 401k plan and why, while it is not the end of the world, it is not a good tax situation….
Should you accidentally over fund your retirement plan … what occurs is a double taxation!
Job change is the most likely reason for overfunding!
Pesky Late Arriving Tax Form Reminder – Form 5498
In this mid month post we remind those of an extra late arriving tax form….
Murphy’s law being applied, the form just arrived last week….about two weeks after our post…..
Reason for receipt:
One of the most confusing parts of this form is that even though you may have made a qualified contribution for a prior year i.e. 2020, if you made that contribution in 2021, depending on the type of contribution the Form 5498 MAY show your contribution in year 2021.
Capital Market Comments
Inflation or No Inflation
In this part two post, “The Smartest Guys in the Room” post we discussed via interest rate futures graphs the movement after FOMC dot plot adjustments and the interest rate markets….
This is an updated Graph of the 2 year US Treasury, which is holding lower, (higher yield) possibly due to faster expected rate increases!
This is the ultra long 30 Year Treasury, which continues to trend higher (lower Yield) possible pricing less inflation from the above mentioned expected shorter term rate increases!
Ok…that’s a wrap for the June review…. Hello July!
Have a Great Day, Talk to You at the End of July!
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
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Posted in Audio, Clients/Clients Only, Economy, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Retirement Planning, Why
Tagged 2 Year Treasury, 30 Year Treasury, 401k, FOMC, Form 5498, Inflation, Interest Rates