April 2022 update: IRS Deadlines, Investment Environment Thoughts, Warren Buffett on the power of no, Inflation Explained, Retirement Misconceptions

We hope spring is starting out well for you. I am reaching out on a few items.

 

First, Candor Asset Advisors' second quarter 2022 investment environment presentation provides is attached for reference purposes. I hope it provides some valuable perspective.

 

Second, if you want to max out your contributions for the 2021 tax year you must do so by the regular APRIL 2021 tax filing deadline (4/18/22) for health savings accounts, traditional IRA and Roth IRA accounts. See P.S. below if you would like more data.

 

Third, attached are some articles that may be of interest:

If you have questions and/or you would like to catch up my scheduling link is below.

https://calendly.com/bhawes-1/check-in

 

If you no longer like to receive our updates just email me back and we will make a note of it.

 

All the best,

William E. Hawes, CFA, CFP®

President & Chief Investment Officer

Candor Asset Advisors, LLC

512 522-8501

bhawes@candorassetadvisors.com

www.candorassetadvisors.com

 

P.S. General background data on HSAs and Traditional and Roth IRAs is provided below:

  • Health Savings Account contributions– You may be eligible to contribute to an HSA if you are enrolled in a high deductible health plan as defined below.

    • Maximum contribution from you and employer in a year: $3,600 self only coverage or $7,200 family coverage

    • A healthcare plan is considered a high deductible plan if:

      • The minimum deductible is self only $1,400 OR family coverage $2,800

      • The maximum annual deductible and other out-of-pocket expenses: $7,000 self-only coverage OR family coverage $14,000

    • Health savings contributions enjoy a tax deduction, accumulate without paying taxes and can be withdrawn without paying taxes if the funds are used for qualified medical expenses.

    • If you change employers during the year maximum contribution rules apply

    • For more information see IRS Publication 969 or talk to your CPA

  • Traditional IRA and Roth IRA contributions – Are generally allowed if you are working or a spouse of someone who is working

    • Contribution limit is $6,000 if you are under age 50 and $7,000 over age 50

    • Tax deduction limits apply based on filing status and adjusted gross income

    • Often misunderstood: You can still contribute to an IRA if you are working and are contributing to an employer plan. The issue is whether the contribution will be tax deductible and whether it will be made to a traditional IRA or Roth IRA.

    • IRA characteristics speaking:

      • contributions may (traditional IRA) or may not be tax deductible (Roth IRA, traditional IRA),

      • can grow tax deferred (traditional IRA) or tax free (Roth IRA)

      • will (traditional IRA) or will not be taxed (Roth IRA) upon distribution during retirement

    • holding rules apply

    • SEP IRA contributions for 2021 can generally occur up to the October 2022 filing deadline

    • For more information see IRS Publication 590-A or talk to your CPA

Disclosures:

Investment advisory and financial planning services offered through Candor Asset Advisors, LLC, a registered investment adviser.