By Moneta Advisor Lauren Hunt

  1. Review your withholdings

If you discover that you withheld too much or too little the previous year and you expect your circumstances to be similar for the current year, you may want to submit a new IRS Form W-4. If your prior year withholdings were too low, the “Other Adjustments” section allows you to tell your employer to withhold additional taxes from each paycheck so that does not happen. The IRS provides a free online tax withholding calculator to help you complete a new Form W-4: irs.gov/individuals/tax-withholding-estimator

  1. Adjust your retirement plan savings

In 2021, you can contribute up to $19,500 in a 401(k), 403(b) or other employer-provided retirement plan plus $6,500 in catch-up contributions if you are age 50 or older. Once you have decided how much you would like to contribute to the plan this year, calculate your contribution percentage by taking the contribution amount divided by your annual salary. For example, if you want to contribute $10,000 this year and your salary is $100,000, your contribution percentage would be 10%. Most employer-provided plans allow you to adjust your contribution percentage amount online. Setting your contribution amount at the beginning of the year can help keep you on track throughout the year.

  1. Check your credit

The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. It is important to review your credit report to make sure the information is accurate and to help guard against identify theft. To order, visit annualcreditreport.com, call 877-322-8228, or complete the Annual Credit Report Request Form by mail. You may order one, two, or all three reports at the same time, or you may stagger your requests.

  1. Automate your savings plan

One of the easiest strategies to save money is to make it automatic. When you automate your savings in January, you are more likely to make saving a consistent priority throughout the year, reducing the temptation to spend those funds without planning ahead. Have you recently received a bonus or pay raise? Make sure you are increasing your savings to adjust for the higher income.

  1. Get organized for tax time

You should begin receiving tax documents such as W-2s, 1098s, and 1099s in January, though others may arrive over the next couple months. Whether you use an electronic filing system, folders or paper clips, decide on how you are going to physically group and hold together important paperwork and documents. Gather all receipts for charitable gifts, medical bills, property taxes, and interest payments so that you can remove stress involved with the April 15 tax filing deadline.

© 2021 Moneta Group Investment Advisors, LLC. All rights reserved. These materials were prepared for informational purposes only. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. Past performance is not indicative of future returns. These materials do not take into consideration your personal circumstances, financial or otherwise.