The new tax law seems to be all that people are talking about these days. Many Americans can expect to see their tax bill lowered this year under the new plan. You might not have noticed these changes, as only 24 percent of workers have taken note of this change, according to a bankrate.com study.
Ted Jenkins, the CEO, and founder of oXYGen Financial Inc. stated that, "It would be smart not to let that extra cash vaporize in your savings account,” and we agree with him. With these new funds, it is a good opportunity to either invest them somewhere beneficial or pay off loans.
One expert from CNBC said, "So many people reach retirement and still have a mortgage. Having any kind of serious mortgage in retirement really cripples your ability to do other fun stuff.” With these new funds from the new tax plan, you should think about any debt that you have that is variable-rate. This includes things like mortgage plans, credit cards, and student loans. Unsure if you are at a place to do this? Contact us and we can help you craft the perfect plan for your financial situation.
One thing to be wary of is whether or not you are withholding more or less than you should under the new tax plan. Due to the changes, you might also have to adjust your withholdings to find the best plan for you and your family.
Tax Penalty Reminder: Although there are many benefits to the new tax law, you should be aware of tax penalties you could face. First, you should avoid IRS penalties by not making early retirement plan withdrawals. This could bring a 10% penalty, which is a significant amount of loss. Also, be sure to make the tax-filing deadline, so you don’t make last-minute tax payments. This can also result in penalties from the IRS.