I hear from people every week who think their tax problem is the end of the world. It usually isn't. I'm Darrin Mish. I've resolved over $100 million in tax debt for clients. Here's what you should know.<\/p>\n
If you contribute to a 401(k) or other similar defined contribution programs, you should know what a deferral (or contribution) limit is.\u00a0 It is the limit set by the IRS that you can contribute without having to pay income tax for it.\u00a0 This amount may be changed from year to year.\u00a0 This year, the elective deferral or contribution limit for those who participate in 401(k), 403(b), most 457 plans, and the federal government\u2019s Thrift Savings Plan has been increased to\u00a0$18,000 from $17,500 in 2014. \u00a0The catch-up contribution limit for those who are 50 and over also increased from $5,500 to $6,000.<\/p>\n
A recent survey by the Fifth Third Bank shows 90% of Americans do not know how much the IRS Deferral Limit is.\u00a0 If you set your contribution amount to match the IRS Deferral Limit, the savings could amount to a lot over the long term.\u00a0 According to the IRS, even saving just $500 more per year\u00a0can result in an extra $110,000 return\u00a0over a 40-year time frame.<\/p>\n
The survey also covered other aspects of financial knowledge and practice.\u00a0 For example, although nearly 60% of those surveyed feel they are financially savvy, yet 44% of Americans are living paycheck to paycheck. \u00a0Less than half of Millennials know what a credit score measures, while 60% of respondents regardless of age do not have enough savings to pay bills for six months in the case of an unexpected loss of income.<\/p>\n","protected":false},"excerpt":{"rendered":"
I hear from people every week who think their tax problem is the end of the world. It usually isn't. I'm Darrin Mish. I've resolved over $100 million in tax debt for clients. Here's what you should know. If you contribute to a 401(k) or other similar defined contribution programs, you should know what a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[591],"tags":[],"class_list":["post-13019","post","type-post","status-publish","format-standard","hentry","category-irs-news"],"_links":{"self":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/13019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/comments?post=13019"}],"version-history":[{"count":1,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/13019\/revisions"}],"predecessor-version":[{"id":22421,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/13019\/revisions\/22421"}],"wp:attachment":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/media?parent=13019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/categories?post=13019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/tags?post=13019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}