Financial planners

1. Bigger contribution limits on retirement accountsIf you're eager to boost your retirement savings, there's good news for 2023: higher contribution limits for your 401(k) and individual retirement account.In 2023, the employee deferral limit is $22,500, up from $20,500, and catch-up deposits for savers age 50 and older jump to $7,500, up from $6,500. These increases also apply to 403(b) plans, most 457 plans and Thrift Savings Plans."That's a big change for a lot of people," said certified financial planner Brandon…

Members of the Salvation Army play music during the lighting of the world's largest Red Kettle in the Times Square neighborhood of New York, U.S., on Tuesday, Dec. 1, 2020.Jeenah Moon | Bloomberg | Getty ImagesThis holiday season, it may be possible to lower your taxes while supporting your favorite charity, experts say.  Despite the shaky economy, most Americans plan to donate similar amounts this year as they did last year, a recent Edward Jones study found.While tax breaks typically aren't the main reason for giving,…

Sdi Productions | E+ | Getty ImagesIf you're retired and skipped your 2022 tax payments, you can still avoid late penalties with an under-the-radar year-end strategy, experts say.Since taxes are due as you receive income, you must withhold levies from earnings or pay quarterly estimated tax payments. You may owe quarterly taxes if you didn't withhold enough from Social Security, pensions or other income.But if you missed paying quarterly taxes, you can correct that mistake through your year-end required minimum…

'Take lemons and make lemonade' with tax-loss harvestingWith the S&P 500 Index down nearly 20% for 2022 as of midday Dec. 19, it may be a good time for tax-loss harvesting, which allows you to offset brokerage account profits with losses, Roberge said.After reducing your 2022 investment gains, you can use additional losses to lower regular income by $3,000 and carry the remaining losses forward to future tax years.  Karen Van Voorhis, a CFP and director of financial planning at Daniel J. Galli & Associates in…

AsiaVision | E+ | Getty ImagesAs the tax season approaches, many Americans are bracing for a new reporting change for third-party payment networks like Venmo or PayPal.  Starting in 2022, you'll receive Form 1099-K, which reports income to the IRS, for business payments over $600. But experts say it's possible you'll receive 1099-Ks for personal transfers by mistake."As tax preparers, we are more or less expecting the worst," said Albert Campo, a certified public accountant and president of AJC Accounting Services in…

Tommaso79 | Istock | Getty ImagesIf you've opted into your company's group disability insurance plan, you may assume there's sufficient income protection if you can't work due to illness or injury. But experts say your workplace coverage may not be enough.  John Ryan, founder and CEO of Ryan Insurance Strategy Consultants, urges employees to embrace group disability insurance, but warns "there can be a false sense of security with the employer plan." For employees, group disability insurance offers guaranteed coverage at…

Petri Oeschge | Getty Images SEATTLE — If you're living together before marriage or committed long-term without plans to tie the knot, you'll need to prepare for the future — or you may face challenges later, experts say.There are "rising rates of cohabitation," with many couples skipping marriage because "they don't see the benefit," said Michelle Petrowski, a certified financial planner at the Phoenix-based financial firm Being in Abundance.Financially speaking, "it can be a blessing and a curse," she said, speaking at…

Charday Penn | E+ | Getty ImagesIf you've accepted payments via apps such as Venmo or PayPal in 2022, you may receive Form 1099-K, which reports income from third-party networks, in early 2023. But there's still time to reduce your tax liability, according to financial experts. "There's no change to the taxability of income," the IRS noted in a release Tuesday about preparing for the upcoming tax season. "All income, including from part-time work, side jobs or the sale of goods is still taxable," the agency added.Before…

seksan Mongkhonkhamsao | Moment | Getty Images1. Boost your 401(k) contributionsIf you haven't maxed out your workplace 401(k), there may still be time to boost your contributions for 2022, said Guarino.The move may lower your adjusted gross income while padding your retirement savings, but "time is of the essence," he said. With only one or two pay periods left for 2022, you'll need to make contribution changes immediately. 2. Take your required minimum distributionsZhanna Hapanovich | Istock | Getty ImagesUnless it's…

Tom Werner | DigitalVision | Getty ImagesCertain tax credits have been reduced One possible reason for a smaller tax refund is the child tax credit and the child and dependent care tax credit have been reduced for 2022, explained certified financial planner Cecil Staton, president and wealth advisor at Arch Financial Planning in Athens, Georgia.While both tax credits received a temporary boost through the American Rescue Plan of 2021, the enhanced tax breaks were not extended to 2022. "The big picture is a lot of people…