Budgeting and Planning for 2022

Morgan Blogs Part 2 (1)

If the new year got away from you the last few months, right now is a great time to review the first quarter, make any adjustments necessary, and look toward the rest of 2022.

Here are a few awesome financial planning tips that will help set you up for a properly budgeted financial year.

  1. Take a look at your current allocation. Make sure that your investment portfolio is still allocated according to your financial plan. It’s possible that during the market volatility of 2021, your various asset classes may have drifted out of balance.
  2. Update Form W-4 for withholding. Now that 2022 has begun, make sure you have checked your withholding to see if you need more or less withheld in 2022.
  3. Make an early calculation of 2021 taxes. You may need to adjust your withholding, change your charitable giving strategy, take advantage of tax brackets or depreciation rules among many other strategies.
  4. Make a 2021 IRA and HSA contribution (if you haven’t already). You have until April 15, 2022, to make eligible IRA and HSA contributions for 2021.
  5. Contribute to your IRA now. It might be in your benefit to convert your ­traditional IRAs to Roths because of low tax rates and broad tax brackets. Ask your CPA for more advice on this one.

It’s not too late — You still have time to set yourself up for an excellent 2022 financially.

Fill out the contact form below to chat with a Morgan & Associates CPA today if you need help with budgeting and planning for 2022.

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