KNS Financial

Personal Finance From a Biblical Perspective

Free Tax Software Giveaway At KNS Financial

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H&R Block was kind enough to provide us with several free copies of their H&R Block AT Home Tax Preparation software.

Free Tax Software You Can Trust

Many of you already know that H&R Block provides professional tax preparation all across the country. However, like TurboTax, they also provide software with which, you can prepare your own return. H&R Block AT Home is available in a few different flavors depending on your needs.

Here are the variations:

Free – File For FREE:

  • FREE to prepare, FREE to print, FREE to e-file
  • FREE expert advice from our community of tax specialists
  • FREE audit support and representation from an enrolled agent – NEW and only from H&R Block
    100% Accuracy Guarantee and Maximum Refund Guarantee

Basic – Simple Tax Situations:

Everything in Free, plus:

  • Import last year’s return
  • Step-by-step guidance to maximize your refund
  • Double check for errors

Deluxe – Homeowners/Investors:

Everything in Basic, plus:

  • Import your W-2, 1099 and last year’s return
  • Searches hundreds of deductions
  • Personalized tax guidance
  • Mortgage interest and charitable tax deduction maximizers
  • Sale of stocks, bonds, and mutual funds

Premium – Self-employed:

Everything in Deluxe, plus:

  • FREE live tax advice2
  • Schedule C guidance
  • Tax laws and planning resources
  • Advanced tax calculators
  • Rental income assistance

The “Premium” version is what we are giving away here! The normal price is $49.95 just to file your federal tax return. To add on a state return, you have to pay $34.95 for each state! I guess it’s a real good thing that they are allowing me to offer this edition (the federal portion) as free tax software.

Free Tax Software For All?

Alright, maybe not for all, but for six! That’s right, H&R Block was nice enough to provide me with six codes for my loyal readers!

How To Enter To Win Free Tax Software:

  1. Link to any of the following articles from your website using the anchor text provided: http://knsfinancial.com/ira-contribution-limits-for-both-roth-and-traditional (IRA Contribution Limits), http://knsfinancial.com/401k-contribution-limits (401k Contribution Limits), http://knsfinancial.com/should-i-cosign-for-a-loan (cosigner). Please note that if you do not use the anchor text provided in the parenthesis EXACTLY AS IT IS WRITTEN, then your entry will not count! This is worth 5 entries for each article (potential of 15 entries)

  2. Sign up for email updates from KNS Financial (you can use the form at the bottom of this post, or the one in the upper right-hand portion of the website) – 3 entries

  3. Subscribe to the KNS Financial RSS Feed – 3 entries

  4. Follow @KNSFINANCIAL on Twitter and Tweet about this contest to your followers using the following (1 entry) – “Win free tax preparation software from @knsfinancial – http://bit.ly/hXCJ0j”

  5. Follow @FGSW (“Fat Guy Skinny Wallet” my new website about Weight Loss, Diet, Fitness, and Debt Management) on Twitter and Tweet about this contest using the following (1 entry) – “Win free tax preparation software from @knsfinancial – http://bit.ly/hXCJ0j via @FGSW”

So, you can have a total of 23 entries for this giveaway!!!

Here are a few more details about this giveaway:

  • You must leave a comment for each method of entry

  • If you win, you will receive a code to use the H&R Block Premium online version for free – keep in mind that the state return is not included

  • If you have already done one of more of the following, you are still eligible for the giveaway – just be sure to leave a comment stating what you have done (and follow the other rules as well)

  • If you have signed up for email updates, please use the same email when you leave a comment (or provide me with the email that you used within the body of the comment). I will match up your comment to my email list to be sure that people aren’t trying to “game the system”

  • If you have tweeted about this giveaway, please provide a link to the tweet as well as your Twitter username so I can match up the entries

  • Although, I plan to reference my email subscriber list and the Twitter records for both accounts, you will only receive credit for an entry if you leave a comment below. For instance, if you are signed up for emails and you fail to leave a comment telling me that you signed up, then you will not be entered.

  • The contest will end on Monday February 21 at 11:59 PM EST

  • I will be using the random number generator found at Random.org to choose the 6 winners.

  • If you are chosen as a winner, you must respond to the confirmation email within 72 hours – if not, another entrant will be randomly selected to take your place. Please leave an email that you plan to check often!

If you are more comfortable having a professional prepare your return, then be sure to contact us to set up an appointment for tax preparation.

Be sure you are aware of the tax filing delay, as well as the fact that the tax filing deadline has been extended this year. To get the most out of your tax situation in 2011, you should know the IRA Contribution Limits, 401k Contribution Limits, and the Income Tax Rates for 2011!

To Keep Up To Date With The Latest Tax News And Regulations, Sign Up For Our Email Updates:

IRA Contribution Limits for Both Roth and Traditional

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Below you will find the IRA Contribution Limits for 2017, 2016, and 2015. Unfortunately, there were no adjustments made to the 2016 contribution limits of IRAs – both Roth and Traditional. Therefore, Roth IRA contribution limits and Traditional IRA contribution limits will remain the same as this year.

Combined Traditional and Roth IRA Contribution Limits:

201720162015
Traditional IRA Contribution Limit$5,500$5,500$5,500
Roth IRA Contribution Limit$5,500$5,500$5,500
IRA Catch-Up Contribution $1,000 $1,000 $1,000
Total IRA Contribution Limit for Those Over 50$6,500$6,500$6,500

For those of you who will be under 50 years of age at the end of the year, the total of your Roth IRA Contribution Limit and your Traditional IRA Contribution Limit is $5,500. However, if your total taxable compensation for the year is less than $5,500, then your IRA contribution limit is equal to the amount of your taxable compensation for 2017.

The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.

IRAContributionLimits

As with the 401k, if you are 50 years of age or older before the end of 2017, then you will be allowed to make a “catch-up” contribution in the amount of $1,000. This will bring your IRA contribution limit to the lesser of $6,500 or the total of your taxable compensation for 2017. This limit can be split between a Traditional IRA and a Roth IRA but the combined limit is $6,500.

For those of you who would rather contribute to an IRA over a 401k because of the added flexibility, please keep in mind that you should still contribute an amount to your 401k that will allow you to take advantage of the full 401k employer match. If not, then you are essentially throwing away free money!

Be sure to refer to these charts from the IRS (linked above) for those who are covered and those who are not covered by a retirement plan at work. Also, see how your Modified AGI affects the amount of Roth IRA Contributions that you can make for 2017.

photo by o5com

401k Contribution Limits

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Below you will find the 401k Contribution Limits for employees, employers, and also for participants who will be at least 50 years old by the end of the calendar year. You should also consult the IRA contribution limits before completing your retirement plan.

201620152014
401 (k) Contribution Limit$18,000.00 $18,000.00 $17,500.00
401 (k) Catch-Up Contribution Limit$6,000.00 $6,000.00 $5,500.00
401 (k) Contribution Limit for Those Over 50$24,000.00 $24,000.00 $23,000.00
401 (k) Employer Contribution Limit6.0%6.0%6.0%

As you can see, there was no cost of living adjustment from 2015, meaning that the 401k contribution limit for 2016 has stayed the same since last year.

As in previous years, plan participants who will be 50 years of age by the end of the year will be able to make a “catch-up” contribution. The catch-up contribution is an additional amount that those close to retirement are allowed to make. As you can see, the catch-up contribution limit will continue to be $6,000 for calendar year 2016.

Also note that the employer 401k contribution limit remains at 6% of the employee’s pre-tax salary. What this means is that an employee that has a gross salary of $100,000 will be able to contribute up to $18,000 during the year. If they will be at least 50 years old by the end of the year, they will be eligible to make a catch-up contribution up to $6,000; bringing their total annual contribution to $24,000.

401KContributionLimits

If they contribute enough to gain their full 401k employer match, then their employer will kick in an additional $6,000 toward the employee’s retirement. This means that the employee in our example will put away $30,000 this year for retirement!

I’ve talked before about contributing enough to qualify for your full 401k employer match, so be sure to read that article to see why it is so vital to your financial health. Basically, I show how you can earn a return of 167% on your 401k before you begin investing!

With this type of return, and the generous amounts that we are allowed to set aside, contributing to a 401k should be at the top of your list of New Year Resolutions!

photo by MJTR

401k Advice – Stop Passing Up Free Money!

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There are many things that we do in life that revolve around money. Much of the time we are working hard to earn more. Unfortunately, this desperation surrounding money doesn’t carry over to claiming our 401k employer match. People will do things out of character, work past the point of exhaustion, and even fall for obvious scams, all in pursuit of money.

Turning Down Free Money?

However, it seems like many of us are passing up free money with every paycheck! According to a recent study by Financial Engines, “39 % of [401 (k)] participants [are] not saving enough to receive the full employer match”! One of the most basic things that you can do is to quality for your 401k employer match.

The situation looks even worse for younger workers. The study reports that, “of participants under age 40, 47% failed to save enough to receive the full employer match.”

Most companies that offer 401 (k) plans will also offer a 401k employer match. What this means is that these companies will match the amount that you put into your plan up to a certain percentage of your salary. Let’s look at an example:

Let’s assume that your gross salary is $52,000 and you are paid every two weeks.You employer promises to match any contribution that you make to your 401 (k) dollar-for-dollar (100%), up to 6%!

You have more pressing concerns than saving for retirement, so you decide to start off slow at 1%. That means that with each paycheck you put aside $20 for retirement, and your company matches – giving you a total of $40!

Sounds pretty good, right? However, you just threw away $100 of FREE MONEY!!! How? Well, let’s take a look:

If you contributed 6% instead of just 1%, then your employer would match your $120 with $120 of FREE MONEY! Sounds a lot better than $20, huh? So, failing to contribute enough to receive the employer match (and only saving 1%), costs you $2,600 per year! Even more if you get a bonus, raise, or commissions!

I don’t know about you, but I would hate to have someone offer me $2,600 and I just light it on fire.

So, I guess you can see that I am in favor of everyone contributing enough in their 401 (k) plan to get the full employer match. If not, then you’re turning down FREE MONEY!!!

Actually, I’d go a step further and have every employee automatically signed up to contribute that amount, and have to opt out in order to change it. That would cause a lot more people to be aware of what their negligence costs them!

Want The 401k Employer Match, But Can’t Afford to Reduce Your Take Home Pay?

Keep in mind that a contribution to a traditional 401 (k) plan is made with pre-tax dollars. That means that taxes are not taken out of your pay until AFTER you make your contribution – leading to you paying less taxes!

Taking this example a little further will help us see this more clearly. Remember that I am making a few assumptions about your tax status in order to simplify the example:

Let’s say that your net pay is usually 25% lower than your gross, or $1,500. Contributing 6% of your salary ($120) will reduce your net pay to $1,410. This is a reduction of only $90 instead of the full $120 that you saved.

Actually, you managed to save $240 for your retirement by reducing your take home pay by only $90! That’s a return of 167% before you even started investing!!!

Is A 410k Employer Match In Your Future?

I hope you’ve read enough to convince you to take full advantage of your company’s 401 (k) match. The only thing worse than not getting the full match is using your 401(k) for credit card debt! Of course, in order to plan carefully you need to know the current 401k contribution limits, and even consider the prospect of a 401k rollover!

photo by AMagill

Reader Questions:

  1. Does your employer currently offer a 401 (k) plan?
  2. If so, are you contributing enough to get the full employer match?
  3. If you are contributing less than that, what’s your reason?

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