Tax Season is Here and So are We

April 17 will be here soon. As you prepare your 2017 taxes, we would like to remind you of some possible tax-saving considerations:

Health Savings Accounts (HSA) Tax preparation

If you are covered under a High Deductible Health Plan for your medical insurance, you may be able to make a tax deductible contribution to an HSA. You have until April 17, 2018 to contribute to an HSA for 2017. The money remains in your account and may be used to pay for any qualified expenses in the future and/or invested*.

Contribution limits for 2017 are:

  • $3,400 for single
  • $6,750 for family
  • $1,000 additional catch-up contribution for age 55 and older

Individual Retirement Accounts (IRA)

If eligible, you can make a deductible contribution to an IRA by April 17, 2018. Contributions are limited to $5,500 if under age 50 and $6,500 if over age 50.

If you are self-employed, consider making contributions to the following:

  • SIMPLE IRA or Safe Harbor 401k – These plans need to be established by October 1 of the preceding year. Contributions must be made by either April 17, 2018, or by October 15, 2018 if there is an extension.
  • SEP IRA – The plan must be established by and the employer contributions made by April 17, 2018, or October 15, 2018 with an extension.

SC Future Scholar 529 Plan

2017 contributions to the SC Future Scholar 529 plan may be made until April 17, 2018 and may be used by state residents to lower SC taxable income. A state income tax deduction of up to 100% of contributions (including rollovers) to a Future Scholar 529 plan is available for South Carolina tax payers.

Your team at NNP is ready to help during tax season. We are happy to work with your tax advisor to determine the viability of any of these strategies. Give us a call at (864) 467-9800.

*minimums might be required.

NEWSLETTER: Q1 2018 – Contribution Limits

A new year brings a new opportunity to maximize savings. Consider increasing your contribution in 2018 to the limits listed below to help reach your savings goals. If you have any questions about how to ensure you are making the most of your contributions, your advisor at NNP is happy to help you understand more.

RETIREMENT PLAN LIMITS:

  • Traditional and Roth IRAs Contribution Limits $5,500
    • Age 50 and over Catch-up Contribution $1,000
  • SEP Contribution Limit
    • Up to 25% of compensation $55,000
  • Elective Deferral Limits
    • 401(k), 403(b), 457 and SARSEP $18,500
    • Age 50 and over Catch-up Contribution $6,000
    • SIMPLE elective deferral $12,500
    • Age 50 and over Catch-up Contribution $3,000
  • Defined Contribution Limit $55,000
  • Max Includable Compensation $275,000

EDUCATION:

  • 529 Plan per individual—before gift tax $15,000
  • 529 Plan per couple—before gift tax $30,000
  • Accelerate 5 years of gifting into 1 year per individual $75,000
  • Accelerate 5 years of gifting into 1 year per couple $150,000

HEALTH SAVINGS ACCOUNT:

  • Maximum Contribution
    • Single $3,450
    • Family $6,900
    • Age 55 and over Catch-up Contribution $1,000
  • Minimum Health Insurance Plan Deductible
    • Single $1,350
    • Family $2,750

To read the other articles from the first quarter of 2018, download the full newsletter.