April, 2013

The Home Equity Process

April 29th, 2013
The Home Equity Process image

When considering a major purchase — think car, home improvements, or a wedding — taking out a home equity loan or home equity line of credit may well be your best option. However, deciding between a home equity loan and a line of credit can be puzzling. With this in mind, we’d suggest that prior to applying for either, you gather necessary paperwork (bank statements, W2 forms, tax returns, etc.) and jot down any potential questions you have related to the overall process. Then, visit with any of The First National Bank and Trust of Newtown’s highly trained lenders to [ read more ]

Major life events can impact your taxes

April 17th, 2013
Major life events can impact your taxes image

Some are still wrestling with this year’s taxes and others should start thinking about how events in your life will impact next year’s tax burden. Here’s an excellent Wall Street Journal piece on tax consequences related to major life changes: “What was new in your life last year? Did you get married or divorced, or adopt a child? Did your parents move in—or your adult child? Did you lose a house to a storm? These and other major events often have tax consequences people are unaware of—precisely because they are unusual, unlike, say, deducting donations. And with big tax increases [ read more ]

IRA types

April 9th, 2013
IRA types image

An IRA can essentially be looked upon as a savings account to help individuals accumulate money for retirement. These accounts require certain contributions each year until a pre-designate retirement age. Depending on your specific needs and qualifications, there are several types of IRAs, including traditional IRAs, Roth IRAs, SEP IRAs and Simple IRAs. All IRAs are FDIC insured for up to $250,000. Traditional IRAs are tax-deferred retirement accounts, allowing you to put off paying taxes until you withdraw money in retirement. Roth IRAs take money from your already-taxed income, which allows you to withdraw money in retirement without paying taxes [ read more ]

April 15th is Tax Day

April 7th, 2013
April 15th is Tax Day image

April 15, that dreaded date when federal taxes are due, is almost here. But fear not — filing your taxes can be a pain, but there are ways to make it easier. The key to doing your taxes is to stay organized.  Start each year with a new folder for all your tax forms. As you receive statements each month, make sure they go straight into that folder. Next, you should know what IRS form you need to complete. There are three choices: 1040EZ, 1040A, and 1040. 1040EZ: Yes, even the IRS has a sense of humor, sort of, and this [ read more ]

Still time to invest in Individual Retirement Accounts (IRA’s) for tax benefits

April 1st, 2013
Still time to invest in Individual Retirement Accounts (IRA’s) for tax benefits image

When it comes to the topic of Individual Retirement Accounts (IRAs), it’s important to note that there is some flexibility with funds invested in these accounts. See this news item from Forbes:  “Since IRAs offer certain tax advantages, there are restrictions on withdrawals and transfers to and from the accounts. Generally, if you pull money out of an IRA before you reach age 59-1/2, you must include the funds in income (subject to certain rules and limitations) for the year in which you make the withdrawal. However, if you pull out funds in order to put them in another retirement [ read more ]