Smart401k Blog

It may still seem early, but time is ticking away. That dreaded deadline is approaching: Tax Day.

This year, your federal taxes are due April 17, 2012.

If you haven’t already, you’ll soon sit at your computer or with a tax professional to file your 2011 tax return with Uncle Sam.

If you’ll receive a tax refund, now is a great time to consider some smart ways to put your refund to work for you:

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Tax season is over.

Exhale and relax a little if your taxes had you stressed out. Then think about a new personal finance project: financial spring cleaning. This is the perfect time of year to tidy your finances. Why?  (more…)

We follow lots of really good blogs – mostly related to personal finance and economics. The Blog Round-Up allows us to point you in the direction of some great content from the blogging world. Posts* included in today’s round-up speak to the theme Tax Season is Here. (more…)

Now that the Super Bowl is over (congratulations, Cheesehead Nation), it’s time to turn our attention to something much less fun – taxes. If you’re anything like me, all those tax statements have started creating a nice little pile on the corner of the desk.

While few people enjoy hunkering down to do their taxes (to be honest, I actually don’t mind doing them), your friends at Smart401k wanted to offer a brief overview of resources to help make this year’s tax season as painless as possible. (more…)

I recently received a call from John Smith (I changed his name to protect his privacy). John had stopped contributing to his 401(k) about five years ago, and he called us while researching whether he should resume contributions. John wanted me to sell him on the idea that he should contribute again to his retirement plan – so I did. I want to share our conversation because I know there are many other people out there in John’s shoes who have settled for inappropriate funds or given up investing out of frustration.

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With the holiday season and the year drawing to a close, many people think about charitable giving. In fact, lots of people have built budgets that include giving during the holidays.

If you’ve considered making a charitable donation, think about this: it’s a gift that gives back. A charitable donation might be one way you could reduce your taxable income. (more…)

Congress just passed The Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010, one of the most popular topics in the news recently. The most well-known part of the bill is the extension through 2012 of existing tax cuts that were set to expire at the end of 2010. Without passage of the bill, your tax rates would have risen in January by 3%-5%, depending on your tax bracket. There were also several add-ons that were not part of the original Bush-era legislation. To read a summary of the bill from the Senate’s Committee on Finance website click this link.

Perhaps the most significant part of the bill for anyone contributing to a work retirement plan is a reduction in the amount that employees owe in payroll tax. The bill temporarily reduces payroll taxes from 6.2% to 4.2% for 2011, which is roughly a 32% reduction. This presents a great opportunity to review the amount you are currently contributing to your work retirement plan. Consider increasing your (more…)

The IRS released 2011 retirement plan contribution limits last week, with expected results. Limits remained unchanged for 2011, compared with 2010, for employer-sponsored plan participants, including 401(k), 403(b), 457 and the Thrift Savings Plan. The annual limit is still $16,500, excluding adjustments, and $5,500 for eligible catch-up contributions.

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For most people, a work retirement plan will be the primary investment vehicle used to save for what we all hope will be a long, exciting and fun-filled retirement. With the uncertain future of Social Security, and the rapid decline of pension plans, individuals are more responsible than ever to fund their own retirement. As we approach 401(k) Day, we at Smart401k thought it would be a good time for a refresher on the importance of participating in your company-sponsored retirement plan and the benefits you receive.

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