February 2023 E-Newsletter

FEBRUARY 2023 E-NEWSLETTER

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February Featured News

Retiring in a Slowing Economy

A well-thought-out plan for a comfortable retirement is essential, even more so in a tough economy.

2023 Tax Brackets and Other Adjustments

The IRS made sizable adjustments to several tax limits in response to the high inflation levels from 2022. Taxpayers will see increases in tax brackets, the standard deduction, and the gift tax exclusion for 2023

Making Estimated Payments Each Quarter

Since the U.S. uses a pay-as-you-go tax system, you must pay income taxes as you earn money. Making estimated payments throughout the year helps you avoid paying penalties.

Fractional Executives for Small Businesses

Outsourcing leadership roles can offer your company insights without the price tag of a full-time employee.

Five Things You Should Know About Calling The IRS

If you have tax troubles or questions, one potential help source is calling the Internal Revenue Service’s helpline. They can assist you if you have questions about your tax return, need to arrange a payment plan for taxes you owe, or have various other issues.

FEBRUARY 2023 Q & A

Q: How do I begin accepting credit card payments from my customers?

A: First, analyze how many credit card transactions you might receive each month and whether they will be online, in-person, or over the phone. Also, consider if you plan to accept all cards (Mastercard, Visa, Discover, American Express) because processing fees vary by card type.

Next, find a credit card processor that offers competitive fees for the volume and type of transactions you'll process. If you operate online, be sure the processor can easily integrate with your website.

Finally, after you choose a processor, you'll open a merchant account.

SHORT BITS

A Look At Stock Market Returns Over 30 Years

Based on the S&P, the average annual return of the stock market is approximately 10%. However, adjusting that for inflation is closer to 6-7%. Looking at the chart, you'll see how the market fluctuated over the past three decades. Most financial professionals recommend holding onto investments when the market takes a dip rather than selling at a loss because chances are, with time, you'll gain back losses.

Here's what the average stock market return looks like for the last three decades.

401K Loans

Although your plan may allow you to borrow from your account, you should be aware of what it means to take out a loan from your 401(k) account.

You’ll generally have to repay the loan amount plus interest. If you don’t repay the loan, including interest, according to the loan’s terms, any unpaid amounts become a plan distribution to you. Your plan may even require you to repay the loan in full if you leave your job.

Also, you’ll generally have to include any previously untaxed amount of the distribution in your gross income in the year in which the distribution occurs. You may also have to pay an additional 10% tax on the taxable distribution amount unless you are at least age 59 ½ or qualify for another exception.

Any unpaid loan amount also means you’ll have less money saved for your retirement.

Office Information

Fax: 516-938-0491

Address: 415 Crossways Park Dr. Ste. C., Woodbury, NY 11797

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