Weekly Digest – November 11, 2022

Sending best wishes and our thanks to our veterans and their families this Veteran’s day 2022.  We salute you and appreciate your courage and service to our country.


Just this morning I received several “Remember Our Veterans” emails, I am borrowing this one from my California realtor Jackie Kurth who included this quote from  Elmer Davis an American news reporter, author and the Director of the US Office of War Information during WW II “This nation will remain the land of the free only so long as it is the home of the brave.” – Elmer Davis 

It’s the middle of November but it feels more like summer I am so glad to still be able to take barefoot walks on the beach and share them with you …

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While friends and family share their fall foliage photo’s with me and allow me to post them here.

Thank you Renee B. for this beautiful shot of the view from your backyard in Weaverville, NC   …


Thank you Renee R. for this beautiful shot of the view from your trip to Lake Placid Village…

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Wishing everyone a great weekend and for those of you who are off today as well, enjoy.


Getting the right support and guidance can make all the difference in the world.  So many times in a conversation I hear myself say “it’s not a stupid question” and many times I double check my interpretation of a tax code with another professional for confirmation.  Just last week I had a client meeting to discuss their intent to withdraw funds from a deferred income account (an IRA).  Our discussion led to my client being able to withdraw a smaller amount and continue to allow those funds to grow tax free.  In addition I could see and hear their relief in being able to make an informed decision and I was so glad to be able to help them with their planning.


Tax Planning in an Unpredictable Environment

What an attention grabber that title was for me with a link to a recent article from AccountingToday.  I believe the environment is usually unpredictable and that many laws are passed in  order to influence behavior, i.e. energy tax credits.  Here is the link to the article which reminds us to look back to look ahead as well as highlighting the Rise and Shine Act and the EARN Act. Both acts are focused on improving retirement, have bipartisan support and could pass before the end of 2022.  Now we read, plan, and wait.

IRS Announced Changes to Retirement Plans for 2022

We love to show our clients how they can take funds earmarked for tax estimates and instead sent them to their investment advisors for investment into deferred income plans.  You know them as 40Ks, IRAs or ROTHs, we know them as amazing tax savings strategies, and the amounts for deferral have just increased:

Highlights of changes for 2022:

  • The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $20,500. Limits on contributions to traditional and Roth IRAs remains unchanged at $6,000.
  • Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If neither the taxpayer nor their spouse is covered by a retirement plan at work, their full contribution to a traditional IRA is deductible. If the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced or phased out until it is eliminated. The amount of the deduction depends on the taxpayer’s filing status and their income.

Traditional IRA income phase-out ranges for 2022 are:

  • $68,000 to $78,000 – Single taxpayers covered by a workplace retirement plan
  • $109,000 to $129,000 – Married couples filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan.
  • $204,000 to $214,000 – A taxpayer not covered by a workplace retirement plan married to someone who’s covered.
  • $0 to $10,000 – Married filing a separate return. This applies to taxpayers covered by a workplace retirement plan

Roth IRA contributions income phase-out ranges for 2022 are:

  • $129,000 to $144,000 – Single taxpayers and heads of household
  • $204,000 to $214,000- Married, filing jointly
  • $0 to $10,000 – Married, filing separately

Saver’s Credit income phase-out ranges for 2022 are:

  • $41,000 to $68,000 – Married, filing jointly.
  • $30,750 to $51,000 – Head of household.
  • $20,500 to $34,000 – Singles and married individuals filing separately.

The amount individuals can contribute to SIMPLE retirement accounts also increases to $14,000 in 2022.

Treasury and IRS Expand Retirement Plan Approval Process

The Treasury Department and Internal Revenue Service recently announced the expansion of one of their programs for approving retirement plans  Rev Proc 2022-40 via IR-2022-196.  This means that the approval process will become more efficient for approving 403(b) plans.  These plans used by certain public schools, churches and charities, will now be able to use the same individually designed retirement plan determination letter program currently used by qualified retirement plans.

Treasury and IRS Expands Two Existing Retirement Plan

The IRS recently expanded two existing programs for tax-qualified retirement plans—the Employee Plans Compliance Resolution System (EPCRS) and the determination letter (DL) program for individually designed plans. Generally, an individually designed plan is a retirement plan drafted to be used by only one employer. Additional details can be found here.


As part of the stimulus plan some people who continued to payments to their student loans during the Covid-19 moratorium are starting to receive refund checks from the government. The good news is they are not taxable.  Currently President Joe Biden’s forgiveness plan is tied up in court.


What Do the Recent Tech Sector Layoffs Mean for the Economy?

Sweeping changes continue at Twitter:

With Elon Musk’s takeover of the social media giant complete, big changes have been in the news all week. From job cuts to privatizing the company, the transition is shaking things up.  In a surprising turn of events, there have been reports of some employees who were fired from Twitter last week being invited back. It’s unclear how their wages or benefits were affected by the rapid firing and rehiring.

Meta prepares for mass layoffs:

To address growing losses and manage heavy development costs for its metaverse business, Facebook’s parent company is reportedly planning to lay off thousands of workers this week.

It can be tough to keep up with the rapid changes in the tech industry. CNN’s Before the Bell breaks down what all the layoffs really say about the state of the economy here.

Climate Change Framed as Emergency at COP27

The COP27 climate summit got underway this week in Egypt. Leaders from all over the world are meeting for two weeks to discuss how to avert the worst effects of climate change. The head of the United Nations declared that the lack of progress so far had the world speeding down a “highway to hell”.

Can the Top 25 Startups Power the Economy?

CNBC created its first-ever Top Startups for the Enterprise list to show the companies giving the economy the biggest boost.  Their list highlights startups powering digital transformation, attracting strategic investments and potentially drawing acquisition interest. These are up-and-coming companies built by innovative entrepreneurs who specifically set out to develop the latest technology in business intelligence, IT, cloud, big data, and cybersecurity as companies in all sectors of the economy allocate increasing levels of spending to technology.  Read the full article here.

 $3.36 Billion in Stolen Bitcoin was Recovered by The Federal Reserve

The Federal Reserve announced that it has recovered $3.36 billion worth of bitcoin stolen from the now-defunct illegal Silk Road marketplace in 2013 – the second-largest crypto recovery ever.


We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are here for you.

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