Banking on the work of their 401(k) should responsibly take a look at the account every year. This is because of New Year changes. Nearly every 1st of the year brings about alterations. Though many of them are minor and hardly a concern, others can really dictate how a 401(k) is added to and when it should be tapped.
It seems that there are two distinct differences in 401K in Colusa for 2017. The first has very little impact on citizens of Colusa. In short, there are plentiful Hurricane Matthew benefits allotted for victims of the storm. This may impact Colusa citizens who own a property on the east coast, particularly Florida. Additional east coast properties can be managed through a local firm. The benefits include retirement tapping with no restrictions that would normally be present, as well as fast-tracking benefits in 401(k)’s and 403(b)’s.
The second major change (or series of changes) will certainly impact a much larger group of Californians. The changes include income cutoffs and limits, and an overall change in the spectrum of what is allowed and is not. Employees can now defer paying income tax on IRA contributions to a higher amount. This stated amount is $5,500, an increase of about 20%. The tax deduction only applies to individuals earning $62,000 or less per year. The deduction was reduced for individuals earning more than $62,000 yearly. It seems that the deduction is being phased out entirely for 2017. Specifically, the deferred income tax on IRA contributions is omitted for individuals claiming more than $62,000 to $72,000, and couples with $99,000 and $119,000, respectively. It is a small window. For individuals over $72,000, the changes are negligible. It is worth noting that individuals who do not have an active 401K in Colusa can make deduction claims related to deferred income tax with no income limitations.
There are other subtle changes for 401(k) holders in 2017 that may change the plan. For more on these changes, as well as a potential consultation with a professional, visit Ryanwealth.com. The site offers updates, advice, and other columns on 401(k) and investing.