Don’t Get Hit With a Big Tax Bill! Most People Are Not Having Enough Federal Tax Withheld!

The IRS is trying to spread the news, and we want to help our clients:  The new tax laws are resulting in many taxpayers being under-withheld because their paycheck withholding was reduced—potentially in excess of the reduction in their tax liability!

While in past years we recommended clients do tax planning when they experienced a major life change, this year we are recommending that almost everyone take a look at their tax situation. For $75-$150 (depending on complexity), we can prepare a tax projection to determine if your withholdings are correct, if they need adjusted and/or if you should make estimated payments before […] Read more

Millennials: Are you living within your means?

Here at N & Co. we have a number of “millennial” clients, business owners, children, and interns.  We enjoy their unique perspective on the world, and as accountants, we are especially interested in their ideas about money. The millennials we know are discerning consumers and are concerned about where their money is going. Miriam Cross, of Kiplinger’s Personal Finances magazine, suggests millennials really review all of their expenses (the needs and the wants), as well  as their savings, to ensure they are looking ahead at their financial future.

Cross suggests tracking all expenses for two or three months—without judgment—so that you have […] Read more

Considering a Roth IRA Conversion: Why it could make sense to pay taxes on retirement savings sooner versus later

Our clients are savvy consumers, and we encourage them to plan carefully for retirement.  That means we welcome the opportunity to help take a long view on tax planning and map out long-term tax saving strategies.

Roth conversions are one such strategy.  Rob Williams, a director of financial planning, retirement income and wealth management with Charles Schwab, offers the following tips: https://www.schwab.com/resource-center/insights/content/3-reasons-to-consider-roth-ira-conversion

 Our team at Nichols & Company is here to help you measure the benefit of IRA conversions. Feel free to call our office at 614-891-5423 to make an appointment to discuss your personal situation.

[…] Read more

529 Plans: 2018 Tax Law Changes

For parents or grandparents, 529 plans can be a smart way to save for schooling.  Here are recent legislative changes:

Saving—
Annual contribution limits double in 2018 from $2,000 to $4,000 per beneficiary.

Paying for expenses—
Beginning in 2018, 529 funds can be used to pay not only for college and other post-secondary education and related expenses, but also for tuition connected with elementary or secondary public, private, or religious school. 
The earnings of 529 plan accounts are not subject to federal or state tax when used for qualified educational expenses.

Key points to remember when using a 529 to pay expenses:

N&Co can help you […] Read more