the only benefit you get with age. Starting on January 1st of the year you turn
50, you can make additional “catch-up” contributions
towards your tax-advantaged, creditor protected
Additional salary deferrals of up to $6,000 into your
401(k), 403(b), governmental 457(b), or Solo 401k
Additional salary deferrals of up to
$3,000 into your SIMPLE IRA or SIMPLE 401(k)
Contributions of up to
$1,000 more into traditional or Roth IRAs
are ON TOP OF the standard limits everyone is allowed to
contribute in 2017:
deferrals of up to $18,000
for 401(k), 403(b), SARSEPs, or governmental 457(b)
deferrals of up to $12,500
for SIMPLE IRA or SIMPLE 401(k)
Contributions of up to $5,500
for traditional or Roth IRAs
it’s never too late to save additional money towards your
retirement. Even a small increase towards your savings made with
each paycheck will make a positive impact to your nest egg
when you’re a retiree.
contributing to a retirement account is one of the best tax
shelters available to taxpayers during their working years.
And in this litigious society that we live in, it's great to know that money
within your retirement accounts is generally fully protected from your
taxpayers, the year
you turn 55 you can also contribute an extra $1,000 into your
Health Savings Account (HSA) over and above the current limits
$6,750 for Family
couples who will both be 55 or older by December 31st can each
contribute $1k more into their H.S.A. account, but both spouses
need their own account set up to be able to put away this extra
With a health
savings account, money contributed is tax-deductible, money
withdrawn to pay your family's healthcare costs is tax-free,
money within the account grows tax-deferred, and any money
remaining in the H.S.A. when you turn 65 is available to
be withdrawn penalty-free to supplement your retirement income.
like IRAs for your healthcare. And as health
insurance premiums continue to increase, opting for a
high-deductible plan that allows you to set up a Health Savings
Account becomes more and more attractive each and every year.
Andrew's presentation was on building a Niche accounting firm. Over
the past 30 years, Andrew has focused his CPA firm on the tax, accounting, and basic
financial planning issues affecting healthcare professionals and their
practices. With the help of his brother Rick,
their firm has grown to 20 staff
members preparing personal taxes for a few thousand physicians, dentists, and
psychologists each winter while
also providing accounting, tax and payroll services to more than 250 dental and
medical practices throughout the year.
The New England
Graduate Accounting Studies Conference, Inc. (NEGASC) is an independent
organization, run largely by non-paid volunteers. Its mission is to provide high
quality and affordable professional learning to the US accounting profession
through its annual conference. NEGASC is not affiliated with, nor endorsed
by, the Internal Revenue Service, any Federal or State agency, the American
Institute of Certified Public Accountants, or any State society of CPAs.
The New England Graduate Accounting Studies Conference is among the
oldest non-profit organizations set up to further CPA knowledge and education.
It’s does this by holding an annual conference, in which twenty (20) hours of
continuing professional education (CPE) are offered. The location of the annual
seminar changes every year, but is held at a college or university in one of the
New England states every June.
"Sleeping in the dorms, eating in the dining hall, and attending classes at this
beautiful University campus brought back a lot of memories from my college years
and added a lot to this unique continuing education experience," says Schwartz.
Next year's conference will be held a half-hour north of Portland Maine during
the second half of the second week of June.
BEST DEPRECIATION JOKE
Andrew was happy
that the attendees seemed to enjoy his very funny depreciation joke that you can hear at:
healthcare professionals are employed based on the academic calendar, and
therefore, switch jobs or employers around July 1st. No matter when you
change jobs, you need to submit a
W-4 form with your new employer to determine how much taxes will be withheld
from each paycheck.
There are definitely some major
flaws associated with completing a W-4 form. What seems like a very
straightforward exercise in paperwork can often result in a surprisingly large overpayment or balance due when you
file your taxes the following winter.
Here are a few of the underlying
issues with the W-4 form:
If you work for more than
one employer, each employer withholds taxes
as if they are your only employer. Let's say you work for 3 employers
and earn $20k per employer. In that situation, you will have
significantly less taxes withheld than if you were to work for one employer
and earn $60k.
If you claim "married" on
the W-4, each of your employers will withhold taxes from
your salary as if your spouse does NOT work. And the closer your income is to your spouse's
income, the more money you
might owe with your tax returns if you both claim Married with a few
allowances on your respective W-4s.
Fortunately, our friends at the
IRS have created an online tool known as the
IRS Withholding Calculator to help you complete the W-4 in such a way that
you should come close to breaking even on your taxes. According to the
If you are an employee, the Withholding Calculator can help you determine
whether you need to give your employer a new
Withholding Allowance Certificate to avoid having too much or too little
Federal income tax withheld from your pay. You can use your results from the
calculator to help fill out the form.
CAUTION: This Withholding Calculator works for most taxpayers. However, if
you owe self-employment tax, alternative minimum tax, or certain Other Taxes;
you should use the instructions in
Withholding and Estimated Tax.
Tips For Using This Program
Have your most recent pay stubs handy.
Have your most recent income tax return handy.
Estimate values if necessary, remembering that the results will be no more
accurate than the input you provide.
Ready to start? Make sure Java scripting is enabled before using this
To Change Your Withholding:
Use your results from this calculator to help you complete a newForm
Withholding Allowance Certificate.
Submit the completed Form to your employer as soon as possible.
For 2016, the standard deduction for a single individual is $6,300 and
for a married couple is $12,600. A person will benefit by itemizing once
allowable deductions exceed the applicable standard deduction. Itemized
deductions include state and local income taxes (or sales taxes), real estate
taxes, mortgage interest, charitable contributions, and unreimbursed employee
For 2016, the personal exemption is $4,050. Individuals will claim a
personal deduction for themselves, their spouse, and their dependents.
The maximum earnings subject tosocial security taxes is $127,200
for 2017, up from $118,500 for 2015 and 2016.
The standard mileage rateis $.535 per business mile as of
January 1, 2017, down from $.54 for 2016.
The maximum annual salary deferral into a 401(k) plan or a
403(b) plan is $18,000 in 2015, 2016 and 2017, up from $17.5k in 2014. And if you'll be 50 or older by December 31st, you can contribute an extra
$6,000 into your 401(k) or 403(b) account this year.
The maximum annual contribution to your IRA is $5,500 for 2014
through 2017. And if you turn 50 by December 31st, you can contribute an
extra $1,000 that year. You have until April 15, 2017 to make your 2016
In a shocking development, the
IRS recently announced that they will be honoring the FICA tax refunds
submitted by residency programs and individual doctors. The catch is
that only FICA taxes paid prior to 4/1/05 qualify.