From the desk of Anthony Sandomierski, CPA/PFS, CFP®, MS (Taxation)

As we begin a new year, I wanted to reach out to you to provide a checklist with some pointers.  If you haven’t been in for a review meeting in a while and feel like you need a “refresher” please contact our office at (732) 556-4200.  Below is a little “checklist” I have put together for you to make sure you are up to speed in a few areas:

  • Employer Retirement Plan Contributions (401(k)s, 403(b)s, SEP IRA, Simple IRAs, etc.) – For our clients who are still working, we are big proponents of making the maximum contributions you can to your retirement plans with work to help boost retirement savings and cut down on your income taxes.  Whether you are part of your employer’s plan or you’re a small business owner with a pension plan, feel free to reach out to me if you need help figuring out how to do this.  We can also see if Roth 401(k) or after-tax contributions to your plan make sense.  Below are the maximum contribution limits for 2020:

401(k) & 403(b) – $19,500 under age 50, $26,000 over age 50

SEP IRA –The lesser 25% of compensation or $58,000

Simple IRA – $13,500 under age 50, $16,500 over age 50

  • IRA/Roth IRA Contributions – For our clients who are still working you may be able to contribute to an IRA or a Roth IRA on top of your Employer Retirement Plan contributions. Feel free to reach out to me if you are interested in knowing if you are eligible for this.  Below are the maximum contribution limits for 2020: 

IRA/Roth IRA – $6,000 under age 50, $7,000 over age 50

  • Charitable Contributions – Due to recent tax law changes, it makes a lot of sense for clients to “bunch” years’ worth of charitable contributions into one year to take advantage of the tax deduction. This could be done by direct contributions to charities or some-times donor advised funds.  Feel free to contact me if this interests you.
  • Required Minimum Distributions (RMDs) – RMDs were suspended for 2020 BUT they ARE REQUIRED for 2021. These apply to clients who are 72 or older in 2021 or certain clients who have beneficiary retirement accounts. Please contact Amanda Frayman in our office to make sure you are all setup for 2021 RMDs at (732) 681-2069 or amanda@oujowealth.com.
  • Health Savings Account (HSAs) – For clients who have these, it makes a ton of sense to make contributions to these accounts as contributions are tax deductible AND growth on these accounts could be tax free if used for qualified medical expenses. I highly advise to make use of these accounts when you can.

Self Only – $3,600 under age 50, $4,600 over age 50

Family – $7,200 under age 50, $8,200 over age 50

  • Interactive Client Portal / Online Access – We are very excited about our new interactive client portal (eMoney) and the positive feedback we’ve been receiving on it. If you have not been setup with our interactive portal, please contact our office at (732) 556-4200.  We also strongly encourage clients interested in e-Delivery of their statements to reach out to our office to get that setup.
  • Annual Review – We encourage our clients to setup an annual review to review their financial plan. Please contact our office to setup a meeting.  We’ve been primarily holding these meetings over Zoom but we can meet in our office if you’d prefer it.  We are here to help!

Again, if you have any questions pertaining to any of these feel free to contact our office at (732) 556-4200 or me directly at (732) 681-1384 or anthony@oujowealth.com. We appreciate your business!

Sincerely,

Anthony Sandomierski, CPA/PFS, CFP®, MS (Taxation)
Wealth Advisor
Direct: (732) 681-1384
E-mail: Anthony@OujoWealth.com