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MEET BLAKE PARO

One of Forbes Best-In-State wealth advisors, Blake Paro has been servicing North Carolina since 2004. A member of Advisor Service Network, LLC, Blake specializes in comprehensive financial planning. This includes consolidation and organization of accounts, analyzing all investment choices, cashflow, expenses, and debt.

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Maximizing Your Financial Strategy: An Insight into the 2024 Tax Brackets and Changes

16 Jan, 2024

I trust this message finds you in good health and high spirits. Today, I bring important news that will have a profound impact on your financial decisions in the coming months – an update on the new IRS tax brackets for the tax year 2024. This information is crucial for planning ahead and ensuring your financial strategies align with the evolving tax landscape. 2024 Marginal Tax Brackets Let's dive into the key details of the 2024 tax brackets, which will affect income tax returns filed in 2025: 10% Tax Rate: Applicable to single individuals with incomes of $11,600 or less and married couples filing jointly with incomes of $23,200 or less. 12% Tax Rate: This rate applies to incomes over $11,600 for single individuals and over $23,200 for married couples filing jointly. 22% Tax Rate: For singles earning more than $47,150 and married couples filing jointly earning over $94,300. 24% Tax Rate: This rate is for single individuals with incomes above $100,525 and married couples filing jointly with incomes over $201,050. 32% Tax Rate: Applies if you're single and earn over $191,950 or part of a married couple earning more than $383,900. 35% Tax Rate: Applicable to singles with incomes above $243,725 and married couples filing jointly with incomes over $487,450. 37% Top Tax Rate: The highest rate applies to single taxpayers earning more than $609,350 and married couples filing jointly with incomes exceeding $731,200. 2024 Standard Deduction The standard deduction is a crucial factor in tax planning. For the tax year 2024, the standard deduction amounts are as follows: Married Couples Filing Jointly: $29,200, an increase of $1,500 from the 2023 tax year. Single Taxpayers and Married Individuals Filing Separately: $14,600. Heads of Households: $21,900, an increase of $1,100 from 2023. Other Notable Changes for 2024 Stay informed about these changes, as they may impact your financial decisions: Earned Income Tax Credit (EITC): The EITC amount increases to $7,830 for qualifying taxpayers with three or more children, up from $7,430 in tax year 2023. Flexible Spending Account (FSA) Contributions: The IRS limit for 2024 FSA contributions is $3,200, up from $3,050 for 2023. Gifts: You can now give up to $18,000 each in gifts in 2024 without paying taxes, compared to $17,000 in 2023. Estate Tax Exemption: The IRS will exempt up to $13.61 million from the estate tax, up from $12.92 million for individuals who passed away in 2023. Strategic Opportunities Await Given these changes, now is an excellent opportunity to strategically maximize your investments. If you have any questions or would like to discuss how these updates might impact your financial plan, I'm here to help. Let's ensure your financial strategy aligns seamlessly with the evolving tax landscape. Here's to a prosperous and well-informed financial future!

Navigating Retirement: Traditional vs. Roth IRA - Making the Right Choice for You

13 Dec, 2023

As retirement approaches, one of the key decisions you'll face is how to structure your retirement savings. The choice between a Traditional IRA and a Roth IRA can significantly impact your financial future. In response to the numerous queries I've received from clients, this blog post aims to shed light on the benefits and drawbacks of each option. Traditional IRA: Tax Savings Now, Tax Implications Later Contributions to a Traditional IRA are made with pre-tax dollars, providing an immediate reduction in your taxable income for the year. This upfront tax advantage is particularly appealing to those looking to maximize their deductions. Furthermore, investment earnings in a Traditional IRA grow tax-deferred, allowing your money to compound without the drag of annual taxes. However, the tax bill comes due when you start making withdrawals in retirement. These withdrawals are taxed as ordinary income at your prevailing tax rate. While it's true that retirees often find themselves in a lower income bracket, it's essential to consider the potential impact of Required Minimum Distributions (RMDs). Starting at age 72, these mandatory withdrawals can force you to withdraw more than you might need, potentially affecting your tax liability. Roth IRA: Tax-Free Growth and Flexibility On the other hand, a Roth IRA operates on a different principle. Contributions are made with after-tax dollars, meaning you don't get an immediate tax deduction. However, the real allure lies in the tax-free growth of your investment earnings. When you withdraw funds from a Roth IRA in retirement, you do so tax-free, providing a significant advantage over the Traditional IRA. Another noteworthy advantage of the Roth IRA is the absence of Required Minimum Distributions. This flexibility allows you to manage your withdrawals according to your needs, potentially minimizing your tax burden. Choosing the Right Path: The decision between a Traditional and Roth IRA isn't one-size-fits-all. Your unique financial situation plays a crucial role in determining which option aligns with your goals. If you find yourself in a lower tax bracket during retirement, the Roth IRA may offer more favorable tax treatment for your initial contributions. For personalized guidance, I encourage you to reach out. I am here to evaluate your personal tax situation and projected retirement income, helping you make an informed decision tailored to your needs. In the ever-changing landscape of retirement planning, understanding the nuances of Traditional and Roth IRAs is paramount. Whether you prioritize immediate tax benefits or tax-free growth, carefully weighing the pros and cons will lead you to the option that aligns best with your financial goals. Don't hesitate to respond to this email or give me a call for a personalized consultation. Together, we can navigate the path to a secure and tax-efficient retirement.

Contact Info

(984) 208-8887

blake@parowealth.com

2245 Gateway Access Point

Suite 203

Raleigh, NC 27607

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