You have multiple advisors – Estate Planners, Accountants, Investment Professionals – but often don’t know the right questions to ask. At Glassman Wealth, we love to educate and empower our clients. You should know that the people you’ve hired are making the right moves to protect and grow your wealth.
Here are the top 3 questions to ask an accountant (or CPA) this year:
1. Am I missing any deductions?
When is the last time you sat down with your CPA? If you have an acc
ountant, don’t just treat them as "data entry." Strategize with them to make sure you’re taking the right deductions and are not paying more tax than you should.
2. Am I saving for retirement the right way?
There are numerous ways to save for retirement in ways that may reduce your tax liability. You are probably aware of Roth and Traditional IRAs, but your plan at work (401(k), 403(b), TSP, etc.) could also offer a Roth component. This is likely worth exploring, so ask your CPA or financial advisor for their recommendations. If you have a SEP-IRA for self-employment income, ask your CPA if an Individual(k) makes more sense, especially if you’re over 50 years old.
3. Should I change my withholding or make quarterly payments?
If you’ve gotten a raise, changed jobs, gotten married or divorced, had children, or moved, you may want to change the W-4 you completed on your first day at work. Otherwise you could withhold too much or too little tax from each paycheck. Uneven income throughout the year due to bonuses or partner distributions can cause withholding hassles. Instead, ask your CPA about setting a flat withholding percentage for the year. Or, if you’re receiving income from multiple sources, you may
want to consider making quarterly estimated tax payments.
If you'd like more information on how Glassman Wealth can provide insight into working with an Accountant, see our article on the best last minute tax day tips.