Tips and resources that everyone can use
New tax law changes treatment of mortgage interest
For 2018, taxpayers may only deduct interest on $750,000 for qualified residence loans taken out after Dec. 15, 2017. This new limit applies to the combined amount of mortgage and home-equity debt. In addition, the new limit applies only to loans used to buy, build or improve the taxpayer’s main home and second home, according to the IRS. Taxpayers no longer can deduct a home-equity line of credit for any purpose. Source: irs.gov.
Quarterly Reminder – Open Enrollment season
Take advantage of Open Enrollment at your company, which usually happens in November. This is a good time to make sure you are maximizing your retirement account contributions, adjusting tax withholdings for the upcoming years, and checking your overall benefits such as life insurance, health savings accounts (HSAs) or flexible spending accounts (FSAs).
Tools & Techniques – Looking for free financial advice?
Smart Money Week, launched by the Federal Reserve Bank
in 2002 for people of all income levels, is one of the most
comprehensive financial literacy programs in the country. And
it’s free! Get informed about saving for college, buying a house and using credit wisely. Source: moneysmartweek.org.
Q&A – Should I contribute to my company’s Roth 401(k)?
The basic difference between a traditional 401(k) and a Roth 401(k) is when you pay the taxes. In a traditional 401(k), you make contributions with pre-tax dollars, so you get a tax break up front that lowers your current income tax bill. With a Roth 401(k), it’s the reverse: you make contributions with after-tax dollars, but withdrawals of contributions and earnings are 100% tax-free at age 59 1/2, so long as you’ve held the account for five years. Although everyone’s situation will be different, many advisors suggest splitting your contributions between your traditional 401(k) and Roth 401(k) to enjoy their dual tax benefits.
Corner on the Market – Basic financial terms to know
A managed account is a fee-based investment product for individuals that offers a high degree of customization by investment managers, along with certain tax efficiencies. A managed account often charges fees that are higher than mutual funds or exchange-traded funds (ETFs) to compensate the investment advisor for the higher degree of customization it offers, or for providing access to highly skilled investment managers.
Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; 877-306-5055; www.kmotion.com
©2018 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.