Kaizen Capsules

Tax season is underway, and we have some tips for recordkeeping. You should keep track of and store your tax and other financial records to avoid delays as the filing deadline approaches. Records may include W-2 forms, canceled checks, certain receipts, and previous year returns.

Common documents

IN THIS MONTH’S RECAP:

• The emerging coronavirus reins in Wall Street’s bulls
• USMCA and China Phase I trade deals make headlines
• Strong consumer confidence continues to support the U.S. economy
• The United Kingdom left the European Union

If you are not already receiving 2019 tax forms, you may receive some soon. 1099 forms are sent out by banks and brokerages in January. Sometimes 1099s are restated, and you may receive an updated version in February.

2019 RECAP

• Federal Reserve shifts into expansionary monetary policy
• U.S. stocks have a banner year with the S&P up 31.5%
• Modest improvement in the U.S-China trade dispute
• Economic data improving, reducing the probability of near-term recession

The I.R.S. increased the annual contribution limits on IRAs, 401(k)s, and other widely used retirement plan accounts for 2020. Here’s a quick look at the changes.

IN THIS MONTH’S RECAP

What changed for you in 2019? Did you start a new job or leave a job behind? Did you retire? If notable changes occurred in your personal or professional life, then you will want to review your finances before this year ends and 2020 begins.

IN THIS MONTH’S RECAP:

If you own an Individual Retirement Account (IRA), perhaps you have heard about Roth conversions. Converting your traditional IRA to a Roth IRA can make a lot of sense depending on your situation.