As taxpayers prepare to file their 2024 tax returns, many hope to receive a refund. However, those who do not receive a refund will need to pay the balance due by April 15th. Additionally, they may be required to make estimated tax payments. The second quarter can be particularly challenging, as both the first quarter payment is due by April 15th, and the second quarter estimated tax payment is due just two months later on June 15th.
At Winthrop Wealth, we understand that managing these financial obligations can be daunting. Our total net worth approach seeks to ensure that you are not only prepared to meet these deadlines but also positioned to optimize your financial health and live life to its fullest.
If you have not yet funded your IRA or Roth IRA, you have until April 15th to contribute. Self-employed individuals contributing to a qualified plan, SEP IRA, or SIMPLE IRA also have until the April 15th deadline to make their contributions. However, if the return is placed on extension, you will have until October 15th to fund these accounts. Our comprehensive wealth management services can provide guidance to help you maximize your contributions and seek to grow your net worth effectively. Once you have consulted your tax preparer, please speak with your advisor about funding, and consider a systematic contribution over time if that may be appropriate.
The second quarter can be brutal for taxpayers who owe for the prior year and need to start estimated tax payments for the current year. We believe careful planning is required to have these funds available. If you don’t have the funds to pay on time, underestimated tax penalties and late penalties for filing liabilities can be costly. We suggest planning ahead to avoid the April 15th cash crunch. Please reach out to your advisor and tax preparer accordingly.
For taxpayers who receive a refund, consider funding your 2025 IRA or Roth IRA (keeping AGI limitations in mind) or qualified accounts as a self-employed individual today instead of waiting until April 15, 2026. Contributing to a qualified account now may help the account to begin compounding sooner and reduces the April 15th cash flow needs when filing your taxes.
At Winthrop Wealth, our philosophy is centered around a total net worth approach. We seek to empower you to manage your finances holistically, prepare for key dates, and work towards your financial goals so you can live life to its fullest.
DISCLOSURES
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.
Dollar cost averaging involves continuous investment in securities regardless of fluctuations in price levels. Investors should consider their ability to continue purchasing through periods of low-price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.
No strategy assures success or protects against loss. Investing involves risk including loss of principal.
< COMMENTARY
Updates | April 01, 2025
2025 Tax Considerations
By Kenneth J. Dean CPA, CFP®, CFA, MST
Senior Director, Financial Planning
As taxpayers prepare to file their 2024 tax returns, many hope to receive a refund. However, those who do not receive a refund will need to pay the balance due by April 15th. Additionally, they may be required to make estimated tax payments. The second quarter can be particularly challenging, as both the first quarter payment is due by April 15th, and the second quarter estimated tax payment is due just two months later on June 15th.
At Winthrop Wealth, we understand that managing these financial obligations can be daunting. Our total net worth approach seeks to ensure that you are not only prepared to meet these deadlines but also positioned to optimize your financial health and live life to its fullest.
If you have not yet funded your IRA or Roth IRA, you have until April 15th to contribute. Self-employed individuals contributing to a qualified plan, SEP IRA, or SIMPLE IRA also have until the April 15th deadline to make their contributions. However, if the return is placed on extension, you will have until October 15th to fund these accounts. Our comprehensive wealth management services can provide guidance to help you maximize your contributions and seek to grow your net worth effectively. Once you have consulted your tax preparer, please speak with your advisor about funding, and consider a systematic contribution over time if that may be appropriate.
The second quarter can be brutal for taxpayers who owe for the prior year and need to start estimated tax payments for the current year. We believe careful planning is required to have these funds available. If you don’t have the funds to pay on time, underestimated tax penalties and late penalties for filing liabilities can be costly. We suggest planning ahead to avoid the April 15th cash crunch. Please reach out to your advisor and tax preparer accordingly.
For taxpayers who receive a refund, consider funding your 2025 IRA or Roth IRA (keeping AGI limitations in mind) or qualified accounts as a self-employed individual today instead of waiting until April 15, 2026. Contributing to a qualified account now may help the account to begin compounding sooner and reduces the April 15th cash flow needs when filing your taxes.
At Winthrop Wealth, our philosophy is centered around a total net worth approach. We seek to empower you to manage your finances holistically, prepare for key dates, and work towards your financial goals so you can live life to its fullest.
DISCLOSURES
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.
Dollar cost averaging involves continuous investment in securities regardless of fluctuations in price levels. Investors should consider their ability to continue purchasing through periods of low-price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.
No strategy assures success or protects against loss. Investing involves risk including loss of principal.