Gary W. Pelletier, CLU, ChFC, AIF®

Northeast Planning Associates, Inc.

Corporate, Estate

& Financial Planning


Planning for Q4

| October 20, 2015
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Where has 2015 gone? We are already in the last quarter of the year and with that comes some end-of-year planning that’s important to do now before the holidays take over. Here are some key things to take a look at today:

IRA contributions – Take a look at your income to make sure your contributions you make are:

  1. Able to be deducted – If you have made more than you expected this year and have been contributing to a Traditional IRA, you may not be able to deduct the full amount or any of it. Keep in mind you can still contribute up to the maximum amount ($5,500 + $1,000 if 50+), even if you cannot deduct the amount on your tax return.
  2. Allowed – Roth IRAs have a similar phase-out, however if you have AGI over $183,000 joint ($113,000 single) the amount you are allowed to contribute is reduced. If you planned to earn less than this and have been contributing to a Roth IRA monthly, but this year has been particularly prosperous (congrats!), there are options to prevent any penalties, so call me to discuss.

Retirement Plan Contributions - Are you on track for your savings goals? Did you get a raise or a bonus but fail to increase your retirement contributions? You have until December 31st to make any increase or maximize your employee deferrals effective for this year. This is the time to look at your pay stub and your retirement plan statement and talk to me about your options.

Flexible Spending Accounts (FSA) – Some employers use November 30th as the end of their FSA plan year, while others use a calendar year. In either case, now is the time to schedule those appointments or stock up on approved medical supplies to avoid the “Use-It or Lose-It” rule. Also, discuss the FSA with your employer to see if your plan allows you to rollover up to $500 to the following year, as this is now allowed by law.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

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