Had a great Post about rates garnered from an updated Graphic from our friends at Visual Capitalist ready… it even is the starting point for a group of articles in our next Newsletter… BUT…this sneaky tax form causes lots of confusion and a late week email reminded….so watch for the Rate Post Wednesday – and a shortened Memorial Day Weekend post Friday with family travels next week! So lets go!
With a reminder email hitting our in box late last week from our back office team….
We wanted to share as this late arriving tax form can be confusing…
Late Arriving Form 5498 About to hit !
Form 5498 is the settlement of contributions to Qualified assets like Rollovers, SEP’s and also an ending balance …. most all of this is for the IRS (Internal Revenue Service) recordkeeping….
Here is why:
The contributions allows the IRS to know we in fact did make the contribution i.e. Did not spend the funds – so no taxes or in other cases a tax write off is A ok on our tax return
IRS needs to know the IRA balance for RMD (Required Minimum Distributions) – Recall mandatory draws are based on age and prior year end balances…
Ohh…one other confusing but important point… contributions to SEP or the like made for the prior year (2022) will show a current year (2023) contribution… no worries the IRS matches it to our tax return!
Have a Great “Sneaky Tax Form 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.
Q2 2023 J.K. Financial, Inc. Newsletter … Tax Reminders – Still time for 2022 Savings … M2 Pilot Advanced Analysis Series Review … By John Kvale CFA, CFP …
Welcome to our Video and Audio Podcast Review of our Q2 2023 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
BREAK IN : From Parting Thoughts in the Newsletter
If you are not receiving our street-cents.com blog posts weekly Monday, Wednesday and Fri-day, please reach out and let us know. We have entered the late cycle portion of this economic slowdown and items are moving much quicker than our quarterly newsletter so we are posting frequent and very important items amongst our sometimes-humorous articles for your review and knowledge.
Let’s get going! We hope you enjoy!
Q2 2023 Newsletter
(YouTube)
Last Minute Tax Planning and Reminders
After a small top of the mind reminder that it is ok to pay taxes, we do not want to pay zero today and then pay at a much higher rate in the future, we certainly do not want to pay ANY more than we have to, we go into several reminders….
The SEP and the Spousal IRA – two things we can do now that will help last years taxes….
Important Reminder about reporting :
Just because we did not receive a tax form personally, does not mean that the IRS did not receive some type of notification of that taxable event! If you had a transaction, usually of some out of the ordinary type, that you did not receive a tax form for, we are not out of the woods and you should report it.
Lastly, comments about the possible rolling of 529 into Roth… the answer is still up in the air with additional legal clarity on this… but it cannot start until 2024 anyway!
Happy Anniversary Rate Increases
While hard to believe, the monumental rate increases (fastest of a life time in %) just started about a year ago
M2 Broad Liquidity Measure Tightens
In another – not kidding here – never seen before, M2 one of the broadest measures of liquidity, turns negative and makes our Pilot Advanced Analysis Series…
First spoken about in January, the effects are being felt through the financial system.. but not where we had expected so far….
Have a Great Finally Here Spring! Talk in the Summer!
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
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Posted in Economy, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, John Kvale, Market Comments, Newsletters, Personal, Podcast, Retirement Planning, Tax Related, Video
Tagged Advanced Analysis, Interest Rates, M2, Newsletter, SEP, Spousal IRA, tax