Reminders (2016.11)

In an effort to lighten up these quarterly reminder emails, I have decided to include the funniest thing that happened to me in the past three months:

A few months ago I was waiting in line to check into a hotel in San Antonio and there was a woman in front of me who was nearly finished checking in.  The man behind the desk gave her a cookie and some waters and the woman said, “Oh perfect, this wilhotell be a nice evening as I sit down to watch the Bachelorette and eat this cookie.”  The man behind the desk said, “You’re welcome”, and the woman left.  I walked up to start the check-in process.  At the end the guy asked if I wanted a cookie.  I joked “No, just the Bachelorette for me thank you.”  Without hesitation the man quipped, “Yes I figured you for a no-cookie, Bachelorette kind of girl.”  I stared at him, then frowned, put my head down and retreated to my room.

The closest items due in the list below are:

1)  December 31, 2016 – this is the spending deadline for your Flexible Spending Account (FSA) unless your employer allows the optional grace period which extends the deadline to March 31, 2017.  Please check with your employer to see if the option exists.

2)  December 31, 2016 – the deadline to convert your Traditional IRA, SEP IRA, and SIMPLE IRA funds to Roth status.  This is the deadline for the ‘Backdoor Roth’ strategy.  Please be careful if converting a portion of yRemindersour total Traditional IRA, SEP IRA, and SIMPLE IRA funds, as you will have a tax liability due on the conversion in this case.  Please consult your tax adviser for further information.

3)  December 31, 2016 – the deadline to contribute up to $18,000 to your 401(k), $24,000 for those aged 50 and over.

4)  January 31, 2017 – IRS Quarterly Estimate Income Tax Payments for the period September 1, 2016 to December 21, 2016 are due.

5)  January 31, 2017 – In most Texas counties, the payment deadline for property taxes is January 31.  Check with your specific county for more information.

 

Federal Income Tax Filing Deadlines (1)               

Tax Filing                              Original Date                      Extension Date (1)

Individual                            April 17, 2017                     October 16, 2017

Partnership (2, 3)             March 15, 2017                  September 15, 2017

C Corporation (2, 3)         April 17, 2017                     October 16, 2017

S Corporation (2)              March 15, 2017                  September 15, 2017

 

1  –  Please note these extension dates are for filings ONLY.  Payments are still due by the original date.

2  –  For calendar-year partnerships and corporations.

3  –  The dates for the calendar-year partnership and corporation have changed in 2017 (2016 tax year) due to the recent H.R. 3236 bill passed.

 

 

Property Tax Filing Deadlines

In most Texas counties, you must protest your property taxes by May 31.  The payment deadline is January 31.  Check with your specific county for more information.

 

 

IRS Quarterly Estimated Income Tax Payments

If the due dates below for making an estimated tax payment fall on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or legal holiday.

Due Date                             Payment Period

April 15                                 January 1 – March 31

June 15                                 April 1 – May 31

September 15                   June 1 – August 31

January 15                           September 1 – December 31

 

 

Health Savings Accounts (HSA)

Contribution Deadline:

April 17, 2017 (2016)

 

Single Contribution Limit:

$3,350 (2016) / $3,400 (2017)

 

Family Contribution Limit:

$6,750 (2016, 2017)

 

Catch-Up Contribution:

$1,000 for those aged 55 and older (2016, 2017)

 

 

Flexible Savings Accounts (FSA)

Spending Deadline:

December 31, 2016 (2016)

 

Optional Grace Period:

March 15, 2017 but only if allowed by your employer

 

Contribution Limit:

$2,550 (2016) / $2,600 (2017)

 

Optional Carryover:

$500 may be carried over to following year, but only if allowed by your employer (2016, 2017)

 

 

Traditional Individual Retirement Accounts (IRAs)

Contribution Deadline:

April 17, 2017 (2016)

 

Maximum Contribution:

$5,500 (2016, 2017)

 

Catch-Up Contribution:

$1,000 for those aged 50 and older (2016, 2017)

 

Contribution Limits:

Contributions not allowed in the year you reach 70 ½ and older

 

Deduction Limits (2016):

If you are covered by a retirement plan at work, no deduction is allowed if –

Single and modified AGI is $71,000 or more

Married and modified AGI is $118,000 or more

Married Filing Separately and modified AGI is $10,000 or more

 

If you are not covered by a retirement plan at work, but your spouse is covered by a retirement plan at work, no deduction is allowed if –

Married and modified AGI is $194,000 or more

Married Filing Separately and modified AGI is $10,000 or more

 

Deduction Limits (2017):

If you are covered by a retirement plan at work, no deduction is allowed if –

Single and modified AGI is $72,000 or more

Married and modified AGI is $119,000 or more

Married Filing Separately and modified AGI is $10,000 or more

 

If you are not covered by a retirement plan at work, but your spouse is covered by a retirement plan at work, no deduction is allowed if –

Married and modified AGI is $194,000 or more

Married Filing Separately and modified AGI is $10,000 or more

 

 

Roth Individual Retirement Accounts (IRAs)

Conversion Deadline:

December 31, 2016 (2016)

 

Contribution Deadline:

April 17, 2017 (2016)

 

Maximum Contribution:

$5,500 (2016, 2017)

 

Catch-Up Contribution:

$1,000 for those aged 50 and older (2016, 2017)

 

Contribution Limits (2016):

Contributions are not allowed if –

Single and modified AGI is $132,000 or more

Married and modified AGI is $194,000 or more

Married Filing Separately and modified AGI is $10,000 or more

 

Contribution Limits (2017):

Contributions are not allowed if –

Single and modified AGI is $133,000 or more

Married and modified AGI is $196,000 or more

Married Filing Separately and modified AGI is $10,000 or more

 

Deduction Limits:

Roth contributions are not deductible

 

 

401(k) Retirement Plan

Salary Deferrals:

$18,000 (2016, 2017)

 

Catch-Up Deferral:

$6,000 for those aged 50 and older (2016, 2017)

 

Deferral Deadline:

December 31, 2016 (2016)

 

Excess Deferral Correction:

April 17, 2017 (2016)

 

Employer + Employee Contributions:

The lesser of 100% of employee compensation or $53,000, not including catch up deferrals (2016)

The lesser of 100% of employee compensation or $54,000, not including catch up deferrals (2017)

 

Annual Compensation Limit:

$265,000 (2016) / $270,000 (2017)

 

Disclosures:         

Composed Financial Management, PLLC does not provide tax advice.  The material presented above is for informational purposes only.  The information listed above is not all-inclusive or exhaustive.  There may be other deadlines that apply to you or other responsibilities you may have with various taxing authorities.  Please consult your tax adviser for more information. 

None of the information or data presented herein constitutes a recommendation by Composed Financial Management, LLC (“the Firm”) or a solicitation of any offer to buy or sell any securities. Information presented is general information that does not take into account your individual circumstances, financial situation or needs, nor does it present a personalized recommendation to you. Although information has been obtained from and is based upon sources the Firm believes to be reliable, we do not guarantee its accuracy and the information may be incomplete or condensed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change.  Past performance is no guarantee of future results.

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