Taxation of Social Security
The tax world is undoubtedly complex and there is much confusion over if or how Social Security benefits are taxable. Like most aspects of the tax code, the answer depends on your individual situation. How Social Security is Taxed To determine if or how much of your Social Security is taxable, the IRS uses a measure called “provisional income” (also known as “combined income”). This is calculated by adding your Adjusted Gross Income (AGI) minus any Social Security benefits + Nontaxable interest + ½ of Social Security benefits. Provisional income is then used to determine what percentage of your Social...
Required Minimum Distributions
Retirement accounts like traditional IRAs and 401(k)s offer powerful tax-deferred growth. But there comes a time when Uncle Sam requires you to start taking money out and paying the associated taxes. Those mandatory withdrawals are called Required Minimum Distributions (RMDs) and understanding them is essential to avoid costly penalties and tax surprises. What Are Required Minimum Distributions? Required Minimum Distributions (RMDs) are the minimum amounts you must withdraw each year from certain tax-deferred retirement accounts once you reach a specific age. The IRS requires you to take these withdrawals to ensure that tax-deferred dollars eventually get taxed as income. Accounts...
Exploring College Savings Options
With rising tuition costs and increasingly competitive financial aid, choosing a savings strategy can be overwhelming. Several college savings vehicles are available, each offering different tax benefits, flexibility, and implications for financial aid. The most common options include 529 plans, Coverdell Education Savings Accounts (ESAs), Uniform Transfers to Minors Act (UTMA) accounts, and taxable brokerage accounts. Understanding how these accounts differ can help families build a strategy that aligns with their goals and circumstances. 529 Plans 529 plans are state-sponsored, tax-advantaged accounts designed specifically for education savings. Contributions are made with after-tax dollars and may be eligible for a state...
Financial Tips to Set You Up for Success in 2026
Get started on your financial planning in 2026. The start of a new year is the perfect time to look ahead and focus on your 2026 financial planning. Reviewing your goals and plans early can help you stay on track, make more intentional decisions, and reduce stress as tax season or year-end approaches. A proactive approach gives you more time, flexibility, and control over your financial outcomes. Below are five financial planning tips to help you get a jump start on your finances this year. 1. Start 2026 Tax Planning Early Beginning your tax planning early in the...
Tax-Advantaged Strategies for Charitable Donations
How to give the most bang for your buck. The year is drawing to a close, and you may be considering year-end charitable donations. There are strategic ways to donate to charities that can benefit both the giver and the receiver. Qualified Charitable Distributions (QCDs) One common mistake we see in charitable giving is withdrawing money from an IRA and then donating it by writing a personal check. Because the IRA withdrawal is taxable, you end up owing taxes on the money before it reaches the charity, leaving less for the cause you want to support. A strategy...
What is IRMAA?
What to know if you get an IRMAA letter this year. Photo by National Cancer Institute on Unsplash If you are a higher-income taxpayer enrolled in Medicare, you may receive a letter from the Social Security Administration (SSA) this fall. This notice concerns the Income-Related Monthly Adjustment Amount (IRMAA) — an additional premium charged on Medicare Parts B and D for individuals with higher income levels. Let’s break down what it means, how it’s calculated, and what you can do if you’re affected. What income is used to determine IRMAA? IRMAA is based on your Modified Adjusted Gross...
Health Insurance After Retirement, Before Medicare
Filling the gap between early retirement and qualifying for Medicare. Health insurance is one of the biggest concerns for people considering retirement before age 65. Many hesitate to leave work because employer-sponsored coverage ends, and Medicare has not yet begun. While this gap can feel intimidating, it doesn’t have to prevent you from moving forward with your retirement plans. Several coverage options are available to bridge the transition. Let’s explore the most common choices for health insurance after retirement but before Medicare. Spouse Health Insurance Plan Transferring to your spouse's employer health insurance plan is the first option. Many people...
The One Big Beautiful Bill (and what it means for you)
We’ve all heard that President Trump’s “One Big Beautiful Bill” was recently signed into law. While there are many changes to tax law within the bill, there are some provisions that remain unchanged or extended. With so much going on in one big bill, it can be difficult to decipher. Let's take a look at the “One Big Beautiful Bill,” and what it means for you. Tax Brackets and Deductions. The bill contains about $4.5 trillion in tax cuts. The current tax brackets, which were set to revert to the old tax code at the end of this year, are...
Essential Tips for Avoiding Email Scams
How to recognize scams and what to do if you encounter them. The internet has made it easier than ever to get in touch with far-away loved ones or friends overseas. It has also made it much easier for the unscrupulous to prey upon the unsuspecting. Email scams are a pervasive threat, targeting individuals and businesses alike with increasingly sophisticated tactics. Avoiding email scams is becoming increasingly difficult. A recent CNET survey found that 96% of American adults report receiving at least one scam email, call, text or social media message every week. Scammers are coming up with new ways to...
Dollar Cost Averaging Establishes Good Saving Habits
Investing small amounts of money regularly establishes good savings habits and can benefit you in the long run. You don’t need a lot of money to start investing. Investing a little bit every pay period, month, or quarter can develop financial discipline and help you reach your financial goals. Many people think they need to save up a lump sum in order to make a worthwhile investment when in reality, small amounts at regular intervals can be beneficial. When you invest a set amount consistently, no matter what the market is doing, you’re practising the dollar cost averaging method- an...