Good morning & happy Monday!
“Knowledge is knowing a tomato is a fruit; wisdom is not putting it in a fruit salad.”
– Miles Kington
Welcome to February! Wow, time is flying by!!!
Today I would like to provide you with a handful of timely updates, hopefully providing some knowledge AND wisdom. 😊 Not everything here will pertain to you, but hopefully this is a resource you can reference when needed.
- Tax forms
- For 2024 you will likely receive 2 sets of tax forms due to us moving from Pershing to Fidelity. You will likely receive tax forms from both companies (but not in all cases). Feel free to reach out to us before filing your taxes if you want to make sure you have all the necessary forms
- The deadline companies have to mail tax forms from IRA distributions is January 31st – you will probably receive these this week
- For non-IRA investment accounts (AKA non-qualified accounts) the deadline is March 15th – I know this can oftentimes be the last document you receive before you can file your taxes
- All Fidelity tax forms are available on the Fidelity app & website – or feel free to call the office and we are glad to provide to you when they are available.
- To access your tax forms online, log into your Fidelity account online at www.fidelity.com.
- Once you are logged in, just under the bold “All accounts” select “Documents”
- Then on the next page select “Tax forms” on the box on the left side of the page
- From here you can select & print your tax documents
- If you would like to have tax documents mailed to you going forward here are the steps to set that up:
- From the homepage on the very top green section to the right of the word Fidelity, click on the 2nd option “Profile”
- On the next page select the last option “Settings and more”
- Scroll down to the bottom right box under “Preferences” select “Communication preferences.”
- Scroll down about 1/3 of the page and under “Account documents” all 4 options should be checked and highlighted in green for eDelivery. The 3rd one down is “Tax forms and related disclosures” – change that one from eDelivery to US Mail
- Please note: please do NOT change any of the other options to US Mail (statements, trade confirmations and related prospectuses, or prospectuses, shareholder reports, and other documents). This could result in a monthly maintenance fee being assessed on your account by Fidelity.
- If you ever want paper delivery of statements please just let us know and we will print out the statements and mail them to you from our office free of charge.
- To access your tax forms online, log into your Fidelity account online at www.fidelity.com.
- For 2024 you will likely receive 2 sets of tax forms due to us moving from Pershing to Fidelity. You will likely receive tax forms from both companies (but not in all cases). Feel free to reach out to us before filing your taxes if you want to make sure you have all the necessary forms
- Here are the updated funding limits for various retirement accounts:
- IRAs & Roth IRAs: $7,000 for those under 50, $8,000 for those over 50 – no change from 2024
- 401ks: $23,500 for those under 50, $31,000 for those over 50 – a $500 increase from 2024
- SIMPLE IRAs: $16,500 for those under 50, $20,000 for those over 50 – a $500 increase from 2024
- Other tax related information for 2025
- The standard deduction increased from $14,600 in 2024 to $15,000 in 2025 ($30,000 for a married couple, up from $29,200 in 2024)
- The tax brackets are the same in 2025 as 2024, 10%, 12%, 22%, 24%, 32%, 35% & 37%, but there were some relatively small updates to what figures qualify in different brackets … I have summarized that below:
- Joint tax filers (married)
| Tax rate | 2025 income level at this bracket | 2024 income level at this bracket |
| 10% | $0-$23,850 | $0-$23,200 |
| 12% | $23,850-$96,950 | $23,200-$94,300 |
| 22% | $96,950-$206,700 | $94,300-$201,050 |
| 24% | $206,700-$394,600 | $201,050-$383,900 |
| 32% | $394,600-$501,050 | $383,900-$487,450 |
| 35% | $501,050-$751,600 | $487,450-$731,200 |
| 37% | $751,600+ | $731,200+ |
- Single tax filers
| Tax rate | 2025 income level at this bracket | 2024 income level at this bracket |
| 10% | $0-$11,925 | $0-$11,600 |
| 12% | $11,925-$48,475 | $11,600-$47,150 |
| 22% | $48,475-$103,350 | $47,150-$100,525 |
| 24% | $103,350-$197,300 | $100,525-$191,950 |
| 32% | $197,300-$250,525 | $191,950-$243,725 |
| 35% | $250,525-$626,350 | $243,725-$609,350 |
| 37% | $626,350+ | $609,350+ |
- Here’s a link to the IRS page about 2025 tax brackets if you are interested: IRS releases tax inflation adjustments for tax year 2025 | Internal Revenue Service
- As you’ve heard me mention before, this is the last year under these tax brackets. The current tax law passed in late 2017 with an effective date of 2018-2025. Donald Trump and the Congress have agreed that addressing these tax brackets are amongst their highest legislative priorities. We will keep you up-to-date on developments … stay tuned 😊
- Also, please note, I am not a CPA or a tax professional, and I don’t play one on TV. 😉 None of the information presented here is to be in any way, shape, or form to considered tax advice. Please consult with a tax professional for tax advice.
I know you will be shocked to know that I have more to say on these topics, but I think this hits the highlights. If you have any questions, need further information, or if we can provide you with resources that might be valuable, please do not hesitate to reach out. We will do our very best to support you in way we can.
Thank you for your continued support, I have the best clients in the world!
Make it a great week ahead.