Welcome to 2017!
Relax. Take a deep breath.
There. Feel better? Good. Then let’s jump in.
Finances Updated in 2017
With a new year, come some new numbers. There will be updates to the maximum 401k contributions, income limits for Roth IRAs, and others. Plus, there will be adjustments to the 2017 income tax brackets, the 2017 standard tax deduction, and more. And, of course, there is a new IRS mileage rate for 2017 as well.
What about 529 plans? There aren’t a lot of updates to those numbers each year, primarily because most facets of 529 college savings plans are administered through the states, who aren’t always as keen on changing and updating everything.
You’ll want to re-evaluate your financial plan for the new year, and you’ll want to review how your financial plan did in 2016. Plus, you’ll want to rebalance your portfolio, if you didn’t do it at the end of 2016.
Retirement Plans 2017
A big part of most retirement plans are tax-advantaged savings accounts like your 401k plan, IRA accounts, and, for some of you, 457 plans, 403(b) plans, and various differed compensation plans. All of those need adjusted and reviewed for 2017 as well.
2017 Income Taxes
A big focus for many people’s finances at the start of 2017 is the looming prospect of income taxes. Start collecting and saving your W2 forms, 1099 forms, and all those other tax forms you get in the mail. However, keep in mind that an increasing number of financial institutions, and even employers are distributing tax forms electronically. Be sure to log into all of your accounts and see if your tax forms are there to download, especially if you have signed up for paperless accounts with anyone.
Set a box, or file folder where you go through your mail so that you can put tax documents in it right away and not lose any. For electronic ones, print and download them so you have them to enter into TurboTax, or give your accountant or tax preparer.
Remember most tax forms are due to be mailed by January 31st.
Also, start thinking about whether you need (or want) to make any retirement plan contributions for 2016 still. You get until April 15th to make the contributions and still count them as a 2016 tax deduction.
Don’t Panic About Money in 2017
Does that sound like a lot?
We haven’t even scratched the surface of making smart money decisions in 2017, but don’t worry. Finance Gourmet will be bigger and better than ever in 2017 to help guide you through with financial recipes for success, and more.
It’s going to be a great 2017.