Newsletter

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May 2018

This Quarter’s Topics

2018 Tax Season

Roth IRA’s

Social Security

Education Savings Accounts

Mileage Rate

 

 

 

2018 Tax Season
We had a very busy and very rewarding tax season!  By April 17th we were able to prepare over 2,400 tax returns and by the end of 2018 we will have
prepared about 2,600 tax returns.  Thank you for giving us the opportunity to minister to you!

Roth IRA’s
We keep asking ourselves why so many of you are contributing to Roth IRA’s when you could be saving so much money with a 403b.  For every $100 you put in a Roth you spend $14.13 in SE tax alone.  If you pay federal income tax you probably spend an extra $24 to $30 in SE and federal income tax for every $100 contribution.  Click this link for more information:    http://ssfoundation.net/pastors?qa_faqs=403-b-versus-an-ira

Social Security
When you are contemplating accepting social security benefits it is always a good idea to get counsel directly from the Social Security office.  Make an
appointment at your local office and sit down with someone.

Education Savings Accounts
Education Savings Plans (529 Plans) have become more popular in recent years.  We are NOT fans of these plans.  When you contribute to one of these plans your contribution is not deductible (except on a few state returns).  The only tax advantage is that the gains on these funds are not taxable so any interest you earn would be tax free.  The plans come with restrictions and penalties are stiff if you do not meet them.  In addition, the
value of the account will count against you dollar for dollar when applying to a college for financial aid.  If you take funds out of a plan to pay for college expenses then these funds cannot also be used for an education credit.  We always add these plans to income to take advantage of the more valuable education credits.  There are just a couple of the many reasons we do not like these plans.

Mileage Rate
The 2018 business mileage rate is 54.5¢.

Sincerely in Christ,

James W. Rickard

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Attention: Tax Law is subject to interpretation. Please be advised that the material contained on this Web site is for information only and is not intended to be a substitute for professional legal advice. The Stewardship Services Foundation endeavors to update the information on this site on a regular basis, but cannot guarantee its accuracy at all times.