Feel Confident with an Emergency Fund
No matter what unexpected change you may face, having cash on hand can help make tackling life’s challenges a little easier. CPAs recommend targeting a specific savings goal and making a regular contribution to your emergency account weekly or monthly. Your CPA can help you identify your optimum emergency savings goals and choose the best type of account for your funds.
Make the Most of Your Generosity
Taxpayers who are 70 1/2 or older must take required minimum annual distributions (RMDs) from most retirement plans. The size of your RMD is based on a variety of factors. If you have other income or simply don’t need all of the RMD, you will still have to take it—and include it in your taxable income for that year. As a result, you may want to consider making a direct contribution of some or all of that RMD (up to $100,000) to your favorite charity, since the donation amount will not count as taxable income. The rule allowing this type of charitable contribution has become permanent, so contact your CPA with any questions on using this option for reaping some benefits while giving back.
Your CPA Can Help
Tax laws may change, but you can always count on getting personalized service and expert advice from your local CPA. Your CPA has the experience and expertise to help you address any financial concern, even in times of uncertainty.
(To find a CPA in your area or for more financial tips, visit www.picpa.org/moneyandlife.)
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